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Running Head: AMERICAN AIRLINES GROUP 1
American Airlines Group
Institutional Affiliation:
Date:

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AMERICAN AIRLINES GROUP 2
The American Airlines
The American Airlines Company is one of the biggest airlines in the world; a position it
acquired after merging with the US airline in the year 2013. The strength of the carrier was also
facilitated by joining with other parties such as ExpressJet, SkyWest, and others, enabling it to
operate over 6700 flights daily. Both the American and US Airways operate about 930 jets which
are their mainline plus an additional 600 aircraft which work at the regional level (Edlin et al.
2016). The managers of the airline believe in investing in the business to attain profits, and that
is the reason as to why they invested in upgrading their aircrafts. These aircrafts are designed to
use fuel in a more efficient way to save the cost of operation.
In 2016, the airline dropped 71 old aircrafts replacing them with 55 new ones whose
technology was more advanced helping the line to reduce the cost of fueling while also raising
customer comfortability. The main hubs of the American Airline Croup include that at Charlotte,
Phoenix, New York, and Washington. The tickets of the group are distributed through its website
and subsidiary companies channels. Although this airline has accrued massive benefits over the
years, the team has been faced with numerous challenges. In the year 2015, the net income of
AAG dropped by 65% a drop which was attribute to the absence of a 3 billion non-tax profit that
had been obtained from the previous year. Another major problem that the airline faced is labor
problems which also led to reduced earnings for the organization.
The Problem at the Company
When the American Airlines merged with the US Airways, the move was supported by
all the employees’ unions involved. However, this support did not last for long, and one year
later, an employee union from US Airways threatened to abandon their duties. This move by the

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Running Head: AMERICAN AIRLINES GROUP American Airlines Group Institutional Affiliation: Date: 1 2 AMERICAN AIRLINES GROUP The American Airlines The American Airlines Company is one of the biggest airlines in the world; a position it acquired after merging with the US airline in the year 2013. The strength of the carrier was also facilitated by joining with other parties such as ExpressJet, SkyWest, and others, enabling it to operate over 6700 flights daily. Both the American and US Airways operate about 930 jets which are their mainline plus an additional 600 aircraft which work at the regional level (Edlin et al. 2016). The managers of the airline believe in investing in the business to attain profits, and that is the reason as to why they invested in upgrading their aircrafts. These aircrafts are designed to use fuel in a more efficient way to save the cost of operation. In 2016, the airline dropped 71 old aircrafts replacing them with 55 new ones whose technology was more advanced helping the line to reduce the cost of fueling while also raising customer comfortability. The main hubs of the American Airline Croup include that at Charlotte, Phoenix, New York, and Washington. The tickets of the group are distributed through its website and subsidiary companies channels. Although this airline has accrued massive benefits over the years, the team has been faced with numerous challenges. In the year 2015, the net income of AAG dropped by 65% a drop which was attribute to ...
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