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AMR Corporation

 

Major U.S. airline. American was created through a merger of several smaller U.S. airlines and incorporated in 1934. It continued to buy the routes of other airlines, becoming an international carrier in the 1970s; its routes include South America, the Caribbean, Europe, and the western Pacific. Its parent company, AMR Corp., also has holdings in food services, hotels, and airport ground services. The company acquired Trans World Airlines in 2001.

For more information on American Airlines, visit Britannica.com.

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Hoover's Profile: AMR Corporation
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(NYSE:AMR)
Company Financials
Income Statement
Balance Sheet
Cash Flow Statement

Contact Information
AMR Corporation
4333 Amon Carter Blvd.
Fort Worth, TX 76155
TX Tel. 817-963-1234
Fax 817-967-4162

Type: Public
On the web: http://www.aa.com
Employees: 84,100
Employee growth: (1.6%)

AMR knows America's spacious skies -- and lots of others. Its main subsidiary is American Airlines, one of the largest airlines in the world. Together with sister company American Eagle and regional carriers that operate as American Connection, American Airlines serves some 250 destinations in about 40 countries in the Americas, Europe, and the Asia/Pacific region. The overall fleet exceeds 900 aircraft; American Airlines operates about 625 jets. The carrier extends its geographic reach through code-sharing arrangements. It is part of the Oneworld global marketing alliance, along with British Airways, Cathay Pacific, Iberia, Qantas, and other airlines.

Key numbers for fiscal year ending December, 2008:
Sales: $23,766.0M
One year growth: 3.6%
Net income: ($2,071.0)M

Officers:
Chairman, President, and CEO, AMR and American Airlines: Gerard J. Arpey
EVP Finance and Planning and CFO, AMR and American Airlines: Thomas W. Horton
SVP Information Technology and CIO, American Airlines: Monte E. Ford

Competitors:
Delta Air Lines
Northwest Airlines
UAL

Stock Quote: AMR Corporation
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Company History: AMR Corporation
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Incorporated: 1934 as American Airlines, Inc.
NAIC: 481111 Scheduled Passenger Air Transportation; 561599 Reservation Services

AMR Corporation is a holding company whose principal subsidiary is American Airlines, Inc., which was founded in 1934. With the acquisition of Trans World Airlines, Inc. (TWA), American became the world's largest airline. It provides scheduled service to 170 destinations throughout North America, the Caribbean, Latin America, Europe, and the Pacific Rim. American's hub cities are Dallas/Fort Worth, Chicago, St. Louis, Miami, and San Juan, Puerto Rico.

In the 20th century, American helped define the full-service airline, pioneering computer reservation systems, frequent-flier miles, coast-to-coast jet flights, the hub-and-spoke system, and advance-purchase discount fares. Under Bob Crandall, the company even learned to thrive during the challenge of deregulation. In the early years of the millennium, however, American was cutting costs and seeking new approaches in the most difficult environment the industry had ever faced.

American Airlines is a product of the merger of a number of small airline companies. One of these founding enterprises was the Robertson Aircraft Company of Missouri, which employed Charles Lindbergh to pilot its first airmail run in 1926. In April 1927 another of these small companies, Juan Trippe's Colonial Air Transport, made the first scheduled passenger run between Boston and New York City. The nucleus of these and the 82 other companies that eventually merged to form American Airlines was a company called Embry-Riddle, which later evolved into the Aviation Corporation (AVCO), one of the United States' first airline conglomerates. The conglomerate was headed by a Wall Street group, led by Avrell Harriman and Robert Lehman, that was not conversant with the new airline business.

In 1930 Charles Coburn formally united the various airlines under the name American Airways Company. American flew a variety of planes, including the Pilgrim 10A. In 1930 the company was granted control of the southern airmail corridor from the East Coast to California. In 1934 the government suspended all private airmail contracts only to reinstate them a few months later under the conditions that previous contract holders were disqualified from bidding and companies could not have the same officers and directors. American Airways thus changed its name to American Airlines and, under the leadership of Lester Seymour, resumed its airmail business, but due to the damage already caused by this interruption, was unable to maintain a profit.

During this period, a Texan named Cyrus Rowlett Smith was becoming a popular figure at American. Smith was originally the vice-president and treasurer of Southern Air Transport, a division later acquired by American. Seymour recognized Smith's ability and made him a vice-president of American in charge of the Southern Division.

In 1934 new American President Smith persuaded Donald Douglas, an aircraft manufacturer, to develop a new airplane to replace the popular DC-2. The company produced a larger 21-passenger airplane, designated the DC-3. Cooperation between the manufacturer and the airline throughout the project set an example for similar joint ventures in the future. American was flying the DC-3s by 1936 and, in large part as a result of the successful new plane, went on to become the number one airline by the close of the decade. The DC-3 proved to be a very popular airplane; its innovative and simple design made it durable and easy to service.

During 1937, in reaction to a public scare over airline safety, American ran a printed advertisement that directly asked, "Afraid to Fly?" Citing the statistical improbability of dying in a crash, the copy discussed the problem in a straightforward and reassuring way. "People are afraid of things they do not know about," the advertisement read. "There is only one way to overcome the fear--and that is, to fly." The promotion succeeded in allaying passenger fears and increasing the airline's business.

When World War II started, American Airlines devoted more than half of its resources to the army. American DC-3s shuttled the Signal Corps and supplies to Brazil for the transatlantic ferry. Smith himself volunteered his services to the Air Transport Command. American's president, Ralph Damon, went to the Republic Aircraft Company to supervise the building of fighter airplanes. After the war American returned to its normal operations, and Smith set out to completely retool the company with modern equipment. The modernization went smoothly and quickly. In 1949 American's archrival, United Airlines, was still flying DC-3s, while American had already sold its last DC-3s.

Following World War II, American Airlines purchased American Export Airlines (AEA) from American Export Steamship Lines. The steamship company was forced to sell AEA when the U.S. Congress decreed that transportation companies could not conduct business in more than one mode. It was an attempt to prevent industrial vertical monopolies from forming. American Airlines sold AEA to Pan Am in 1950.

In the late 1940s American suffered another financial crisis, caused mainly by the grounding of the DC-6. The airplanes were experiencing operational problems that led to crashes, and the federal government wanted all of them thoroughly inspected. Six weeks later they were back in service, but the interruption cost American a large amount of money. When banks restricted American's line of credit, Smith joined representatives of TWA and United on Capitol Hill to lobby for fare increases. Subsequently, as part of a compromise, American was awarded an airmail subsidy.

Still facing financial difficulties, company management attempted to raise cash by selling overseas routes served by the Amex (AEA) flying boats. The sale was blocked by the Civil Aeronautics Board (CAB). American needed the cash, and Juan Trippe at Pan Am actually wanted to purchase the overseas routes. As a result, they jointly lobbied the administration of President Harry S. Truman to overturn the CAB decision, but the timing was inauspicious. It was June 1950, and the president was focused on the war in Korea. A few weeks later, after the Korean situation stabilized, Truman did finally rule in favor of the airlines and American was allowed the sale. Thus the company avoided a debilitating financial crisis.

American made the first scheduled nonstop transcontinental flights in 1953 with the 80-passenger DC-7. In 1955 American ordered its first jetliners, Boeing 707s, which were delivered in 1959. With larger and faster aircraft on the drawing boards, American became interested in, and eventually purchased, jumbo B-747s in the late 1960s. The company also ordered a number of supersonic transports, but was forced to cancel these orders when Congress halted funding to Boeing for their development.

C.R. Smith left American in 1968 for a position in the administration of President Lyndon B. Johnson, serving as secretary of commerce. Smith was succeeded at American by a lawyer named George A. Spater, who changed the company's marketing strategy and attempted to make the airline more attractive to vacationers instead of to the traditional business traveler, a plan that ultimately failed. Spater's presidency lasted only until 1973, when he admitted to making an illegal $55,000 corporate contribution to President Richard Nixon's reelection campaign. Some believe the gift was intended to procure favorable treatment from the Civil Aeronautics Board for American. As a result, American's board of directors decided to fire Spater and draft Smith out of retirement at the age of 74 to head the company again.

Smith retired after only seven months when the board of directors persuaded Albert V. Casey to leave the TimesMirror Company in Los Angeles to join American. As the new chief executive officer, Casey reversed the company's fortunes from a deficit of $20 million in 1975 to a record profit of $134 million in 1978. To everyone's surprise Casey moved the airline's headquarters from New York City to Dallas/Fort Worth in 1979. Although some said Casey was unhappy with his inability to gain acceptance in New York's social circles, Casey reasoned that a domestic airline should be based between the coasts. Believing the company needed to be shaken out of its lethargy, he felt that American would benefit from the relocation.

Soon afterward, American introduced "Super Saver" fares during 1977 in an innovative attempt to fill passenger seats on coast-to-coast flights. TWA and United followed suit after they failed to persuade the CAB to intervene.

Also in 1977 American was forced to rehire 300 flight attendants who were fired between 1965 and 1970 because they had become pregnant. The award also included $2.7 million in back pay. Compounding these setbacks, on May 25, 1979, an American DC-10 crashed at Chicago's O'Hare airport. Later blamed on inadequate maintenance procedures, the crash resulted in 273 deaths and a fine of $500,000 by the Federal Aviation Administration (FAA). Although the company collected $24.3 million in insurance benefits, it was forced to pay wrongful death settlements averaging $475,000 per passenger.

The Airline Deregulation Act of 1978 had the effect of making the airline industry suddenly volatile and competitive. American could adjust to deregulation in one of several ways. First, it could sell its jetliners once they were written down, and move into other, more promising businesses. Second, it could scale down only partially, leaving a more efficient operation to compete with new airlines such as New York Air and People Express. A third option was to ask employees to accept salary reductions and other concessions as Frank Borman did at Eastern. In the end, American was not forced to take any of these measures. The company secured a two-tier wage contract with its employees and this new agreement reduced labor costs by as much as $10,000 a year per new employee. In addition, workers were given a profit-sharing interest in the company.

Robert Crandall, formerly with Eastman Kodak, Hallmark, TWA, and Bloomingdale's, [fs1.5]joined American in 1973 and became its president in 1980. On October 1, 1982, Crandall oversaw the creation of a holding company, the AMR Corporation. According to the company's 1982 annual report, this move would not affect daily business, but would "provide the company with access to sources of financing that otherwise might be unavailable." Known for his impatient and aggressive manner, Crandall may be credited with American's successful, but not completely painless, readjustment to the post-deregulation era. Crandall fired approximately 7,000 employees in an austerity drive, a decision that severely damaged his standing with the unions.

American updated its jetliner fleet to meet the new conditions in the industry during the 1980s by phasing in B-767s and MD-80s. The MD-80s had two major advantages over other aircraft: a two-person cockpit crew and high fuel efficiency. Crandall noted that American was developing a new, inexpensive airline inside the old one.

By the early 1980s, AMR had developed its Sabre computer reservations system into what was widely regarded as the best in the industry. The Sabre system allowed agents to assign seats, reserve tickets for Broadway plays, book lodgings, and even arrange to send flowers to passengers. Extremely successful in filling space on American flights efficiently and inexpensively, the Sabre system eventually expanded by beginning operations in Europe.

As of 1982, American ran major hubs at Dallas/Fort Worth and O'Hare in Chicago. Secondary hubs in Nashville and Raleigh-Durham were intended to more firmly establish the airline in the Southeast. In addition to a multihub system and the reservations database, American contracted with smaller regional carriers.

American owned a number of subsidiaries when it created the AMR holding company. An airline catering business called Sky Chefs was started in 1942 and served American and several other air carriers. In 1977 American created AA Development Corporation and AA Energy Corporation. These subsidiaries--merged in 1984 to create AMR Energy Corporation--participated in the exploration and development of oil and natural gas resources, many of which were successful. The American Airlines Training Corporation, created in 1979, serviced military and commercial contracts that provided training for pilots and mechanics. All three subsidiaries were sold in 1986.

In 1985 American surpassed United in passenger traffic and regained after 20 years the title of number one airline in the United States. Although the company had dealt reasonably well with disruptions in the industry, and despite its stated intention to grow internally, AMR announced in November 1986 that it would acquire ACI Holdings, Inc., the parent company of AirCal, for $225 million. This move came in response to announcements by American's competitors Delta and Northwest, which had entered into cooperation agreements with western air carriers. The addition of AirCal's western routes significantly increased American's exposure on the West Coast and gave it a base for expanding American services across the Pacific Ocean. The late 1980s also saw AMR delve further into the regional airline business, acquiring Nashville Eagle, establishing American Eagle, and buying additional regional airlines.

As the decade of the 1980s ended, the airline industry was challenged by a weakening economy and such costly developments as the fuel price spike caused by the Persian Gulf War, which contributed to industry losses of $2.4 billion in 1990. American pursued a strategy of acquiring key overseas routes from troubled or failed airlines, cutting costs, and using its leading position to harry its opponents in price wars. In 1989 it purchased TWA's Chicago operations and London routes, to which it added, in 1991, six more TWA London routes at a price of $445 million. Also that year, American purchased from failed Eastern Airlines the routes to 20 Latin American sites. By the close of the 1980s American was purchasing planes at a rate of one every five days; its fleet stood among the world's newest. At the same time, Crandall cut executive perks and flight expenses in a general program of internal belt-tightening. The CEO once ordered the removal of olives from all salads served on American planes, saving $100,000 a year.

Throughout the late 1980s and early 1990s, Crandall's ruthless--and effective--competitive strategies were the focus of industry controversy. Smaller airlines, as well as such larger and financially troubled airlines as TWA, accused Crandall of using unfair, "cannibalistic" tactics to create a situation in which a few major carriers, having eliminated their competition, could agree to maintain high prices without fear of being undercut. Crandall countered, however, according to Business Week, that American's strategies were perfectly within reason in an "intensely, vigorously, bitterly, savagely competitive" industry. Any shifts within the industry, including the elimination of some weaker companies, he argued, were a necessary if painful part of restructuring an industry with a surplus of carriers. Further, he contended, many of American's ailing competitors brought their woes upon themselves by initiating fare wars, which forced all carriers to sell seats at losses that the smaller carriers ultimately could not afford. The airline industry, Crandall commented in an interview with Time, "is always in the grip of its dumbest competitors."

In April 1992 American introduced a new airfare system, designed to simplify rates that had been made complicated over the years by myriad restricted, cut-rate fare specials. The new system included only four fares: first-class, coach, 7-day advance purchase, and 21-day advance purchase. Each price represented a cut in the fare for that category--up to 50 percent for first-class tickets--but the new system also eliminated the promotions that enabled vacation travelers to buy coach tickets at bargain rates. American held that the old discount fares were damaging the industry and that the new rates would be fairer to consumers. Detractors charged that the fares would benefit business travelers far more than tourists, and that the pricing system was designed to drive financially weak carriers out of business by forcing them to make fare cuts they could not afford. American's competitors soon matched its prices, then countered with a new wave of restricted, reduced fares.

After four straight years in the red from 1990 through 1993, AMR finally returned to profitability in 1994. The turnaround was at least in part an industrywide one as the excess capacity and intense fare wars in the U.S. airline industry during the early 1990s disappeared. Lower fuel prices also played a key role. In December 1995 American Airlines suffered its first fatal crash in 16 years when one of its planes crashed near Cali, Colombia. The following year AMR reduced its stake in its Sabre unit by about 20 percent through a public offering.

Key developments in the late 1990s included alliances and divestments. One of the most important trends in the airline industry in the 1990s was that of global alliance building. In 1996 American Airlines and British Airways plc announced that they would form an alliance in which the two airlines would virtually operate as a single unit on North Atlantic runs. The plan, however, ran into severe regulatory problems, including a stipulation by the U.S. government that an "open skies" treaty between the United States and Britain precede any granting of antitrust immunity to the British Airways-American link-up. By late 1998 the open skies negotiations had ground to a halt. As it became more likely that the alliance with British Airways might never get off the ground, American Airlines shifted gears and announced in September 1998 the formation of the oneworld alliance. Oneworld initially included American, British Airways, Canadian Airlines, Hong Kong's Cathay Pacific Airways, and Australia's Qantas Airways, with the partners agreeing to link their frequent-flier programs and give each other access to their airport lounge facilities. Finnair and Spain's Iberia were slated to join oneworld in 1999, and Linea Aerea Nacional de Chile (LanChile) agreed to become the eighth member starting in 2000. American also entered into a separate bilateral marketing alliance with US Airways in April 1998, again involving linked frequent-flier programs and reciprocal airport lounge facility access.

In September 1998 AMR announced that it would sell three subsidiaries that had been part of the Management Services Group in order to focus on its core airlines businesses. By the end of the year the company had reached agreements to sell all three, with AMR Combs Inc., an executive aviation services company, going to BBA Group plc of the United Kingdom for $170 million; TeleService Resources, a telemarketing firm, sold to Platinum Equity Holdings; and AMR Services, a ground services and cargo logistics unit, bought by New York merchant bank Castle Harlan. These divestments left AMR with two main lines of business: the Airline Group, which consisted of American Airlines and the American Eagle regional airline operations; and the Sabre Group, in which AMR held an 82.4 percent stake at the end of 1998.

American Airlines continued to be beset by labor troubles throughout the 1990s, including a brief strike by pilots in 1997 which ended after President Bill Clinton intervened, appointing a presidential emergency board to resolve the dispute through imposition of a new contract (under this pressure, the two sides soon reached their own agreement). When Crandall retired in May 1998, it appeared that better relations with labor might be on tap. Crandall's successor as chairman and CEO was Donald J. Carty, who had been president (a title he retained). Around the time of his promotion, Carty was quoted as having told union leaders that he planned to focus on employees because "happy employees make for happy customers, which make for happy shareholders." But trouble erupted following the December 1998 acquisition by AMR of low-cost carrier Reno Air, Inc. for $124 million. Reno Air had 27 planes in its fleet and hub cities in Reno, Nevada, and San Jose, California. Rather than operating it as a low-cost "airline-within-an-airline," AMR aimed to integrate Reno into American Airlines, thereby strengthening American's presence in the western United States. But when American attempted to integrate pilots from Reno Air without immediately giving pay raises to those Reno pilots moving into higher paying positions at American, members of the American Pilots Association (APA) began a sickout in early February 1999 that forced thousands of flight cancellations and crippled the airline. AMR sued the APA, winning a restraining order and an order for a return to work. After the pilots defied this order, a U.S. district judge found the union and its top two leaders in contempt of court for ignoring his order. This ended the sickout, but not before the eight-day action had cost AMR an estimated $150 million in lost business. In late February American and the APA agreed to attempt to resolve their dispute through nonbinding arbitration.

During 1999 American Airlines took delivery of 44 new airplanes, adding the Boeing 737 and 777 to its fleet. It was also in the midst of a $400 million program to overhaul the interiors of its 639-plane fleet, the first such change in 20 years. Sabre, meantime, rode the Internet wave of the late 1990s through Travelocity.com, its travel web site that was one of the leading sites for the purchase of airline tickets. These positive developments were tempered, however, by an antitrust lawsuit filed against American Airlines by the U.S. Department of Justice in May 1999. The Justice Department charged that the airliner in the mid-1990s had slashed fares upon the entry of low-cost rivals into its Dallas/Fort Worth hub, incurring losses in the process until the smaller competitors had been forced out. Following the departure of a rival, American would then raise fares and sometimes reduce service. American Airlines immediately responded with a vigorous denial of the charges, setting the stage for what could be a lengthy, contentious, and precedent-setting lawsuit--a lawsuit that was just one of the many challenges facing AMR at the end of the century.

AMR sold its remaining 82 percent stake in the Sabre computer reservations system group in March 2000. Travelocity, in which Sabre held a 70 percent stake, led all online ticket sales agencies with $1 billion in 1999 bookings. Sabre also provided American's IT services, and had contracts to do so until 2008.

In the summer of 2000, AMR pursued Northwest Airlines with a merger proposal. The company balked at NWA's high asking price, however. In January 2001, American announced a deal to buy ailing TWA and part of US Airways, which was being absorbed by United Airlines. AMR paid $742 million for TWA, which had been the eighth largest airline in the United States. The acquisition made American the world's largest airline, ahead of United. American agreed to hire most of TWA's 20,000 workers in the transaction.

American Airlines and British Airways had applied for antitrust immunity similar to what allowed KLM and Northwest to cooperate so closely, and effectively. U.S. authorities refused to grant this status to British Airways and American without the two giving up landing slots in London to rivals, and American withdrew its application in February 2002.

AMR's total operating revenues were $19.7 billion in 2000, resulting in net earnings of $770 million. The year 2001 began poorly for AMR, however, like most U.S. airlines, and continued to get worse. The traditionally strong second quarter--AMR had made a net profit of $285 million a year earlier--saw a loss of $105 million at AMR. A drop in business travel was the main cause.

American lost two aircraft full of passengers and 36 employees in the September 11 hijackings. The FAA banned all civil air operations in the two days following the tragedy, which stranded American planes and passengers at various airports, and delayed the deployment of the company's crisis management team. When thousands of flight crew members felt unable to fly, their unions relaxed their rules and allowed others to give up their own time off to take their place. The crash of American Airlines Flight 587 upon takeoff from JFK Airport in November 2001 added further trauma to a horrific year.

The two-day flying suspension and a drop-off in passenger traffic and ticket prices following the attacks in New York and at the Pentagon hurt most of the major airlines. AMR soon cut its capacity 20 percent, but still lost about $600 million in revenue in the last 20 days of September alone. AMR posted a record quarterly operating loss of $414 million in the third quarter, in spite of $508 million in government aid.

AMR posted a full-year net loss of $1.8 billion on total operating revenues of $19 billion in 2001. The company reduced the workforce by 20 percent, or 20,000 employees. Capital spending for 2002 was reduced 40 percent, from a planned $3.5 billion.

The airline simplified its fleet, retiring its MD-11, MD-90, DC-10, MD-87, and DC airliners in 2001. The fleet numbered 712 planes at the end of the year. In mid-2002, American retired its short-haul Boeing 717 fleet, acquired from the TWA takeover, in favor of the similar-sized Fokker F100s already in its fleet. The carrier aimed to operate only seven types of aircraft by the end of the year, down from 14 in 2000. Soon, the Fokkers also were added to the list of planes to be retired.

American lost $1.1 billion in the first half of 2002--a quarter of the amount lost by all U.S. airlines--and lost another $924 million in the third quarter alone. As business travelers disappeared, management was trying to adopt the budget airline methodology of such carriers as Southwest Airlines Co. It removed magazines from planes and skipped meals on flights of less than four hours. Arrivals and departures schedules were rearranged for efficiency, resulting in longer layovers. American's hub-and-spoke system, large and unionized workforce, and other manifestations of the archetypical full-service airline, however, were deeply entrenched in the company's culture. CEO Donald Carty told the Wall Street Journal the airline was looking for a middle ground "neither preoccupied solely with cost nor solely with revenue."

A sweeping overhaul was announced in August 2002. The company was cutting another 7,000 jobs. First-class service was removed on most flights, with the exception of major international routes. Economic instability in Latin America, an American Airlines stronghold, added to the considerable challenges the carrier was facing. The world's largest airline was still among the strongest financially, but AMR was still searching for a way to thrive in a dramatically different industry from the one it dominated for much of the 20th century.

Principal Subsidiaries

American Airlines, Inc.; American Eagle Airlines, Inc.; AMR Investment Services.

Principal Divisions

Passenger-American Airlines; TWA LLC; AMR Eagle; Cargo.

Principal Competitors

Continental Airlines, Inc.; Delta Air Lines, Inc.; Southwest Airlines Co.; UAL Corporation.

Further Reading

"The Airline Mess," Business Week, July 6, 1992.

Baumohl, Bernard, Deborah Fowler, and William McWhirter, "Fasten Your Seat Belts for the Fare War," Time, April 27, 1992.

Carey, Susan, "TWA's Sale to American Airlines Clears Hurdle, Is to Close Today," Wall Street Journal, April 9, 2001, p. B9.

Carey, Susan, and Scott McCartney, "AMR, Northwest Talks to Turn Serious As Pressure Rises for Decision on Merger," Wall Street Journal, July 12, 2000, p. C16.

Castro, Janice, "'This Industry Is Always in the Grip of Its Dumbest Competitors,'" Time, May 4, 1992.

Dwyer, Paula, Wendy Zellner, and Stewart Toy, "A Megadeal in the Skies," Business Week, June 3, 1996, pp. 50-51.

Elkind, Peter, "Flying for Fun & Profit," Fortune, October 25, 1999, pp. 36-37.

Feldman, Joan M., "Adios to Sabre," Air Transport World, February 2000, pp. 58-62.

Fisher, Daniel, "The Ghost of Crandall," Forbes, November 15, 1999, pp. 52-53.

Goldsmith, Charles, and Julie Wolf, "EU Clears AMR/British Airways Alliance," Wall Street Journal, July 9, 1998, pp. A3, A10.

Helyar, John, "A Wing and a Prayer," Fortune, Investor's Guide Supp., December 10, 2001, pp. 178-88.

Jackson, Robert, The Sky Their Frontier: The Story of the World's Pioneer Airlines and Routes, 1920-1940, Shrewsbury, England: Airlife, 1983.

Jennings, Mead, "If You Can't Beat 'Em," Airline Business, January 1995, pp. 22+.

Kindel, Sharen, "(Well) Grounded," Financial World, October 12, 1993, pp. 90-91.

Laibioh, Kenneth, "American Takes on the World," Fortune, September 24, 1990.

Lieber, Ronald B., "Bob Crandall's Boo-Boos: The Fiery American Airlines Chairman Faces Labor Strife That Could Create Long-Lasting Scars at His Company," Fortune, April 28, 1997, pp. 365+.

Mathews, Anna Wilde, and Scott McCartney, "U.S. Sues American Air in Antitrust Case," Wall Street Journal, May 14, 1999, pp. A3, A6.

McCartney, Scott, "American Air's Crandall, About to Retire, Is Flying High," Wall Street Journal, April 27, 1998, p. B4.

------, "American Turns Its Attention to Performance," Wall Street Journal, May 7, 1997, pp. B1, B4.

------, "AMR, Challenging UAL in West, to Buy Reno Air," Wall Street Journal, November 20, 1998, pp. A3, A8.

------, "AMR, Forced to Cancel 22% of Flights, Threatens to Sue Pilots Over Sickout," Wall Street Journal, February 9, 1999, pp. A3, A11.

------, "AMR Plans to Auction Three of Its Units to Focus on American Airlines Business," Wall Street Journal, September 30, 1998, p. A4.

------, "AMR Posts $414 Million Loss Despite Aid from US Government," Wall Street Journal, October 25, 2001, p. A4.

------, "AMR Puts Pilot Costs Over $150 Million," Wall Street Journal, February 18, 1999, pp. A3, A12.

------, "At American Airlines, Pilots Trace Grievances to Deals in Lean Years," Wall Street Journal, February 11, 1999, pp. A1, A10.

------, "Clipped Wings: American Airlines to Retrench in Bid to Beat Discount Carriers," Wall Street Journal, August 13, 2002, p. A1.

------, "Tension at AMR Outlasts Fading Sickout," Wall Street Journal, February 16, 1999, pp. A3, A14.

Moorman, Robert W., "Eagle Preens Its Plumage," Air Transport World, April 1996, pp. 55-56, 59.

O'Donnell, Jane, "4 Airlines Post Loss for Quarter; AMR Exec: 'This Is a Very, Very Difficult Situation for the Industry,'" USA Today, July 19, 2001, p. B3.

Phillips, Edward H., "Government Aid Meets the Wolf at the Door; American Airlines: Worst Losses in History," Aviation Week & Space Technology, October 29, 2001, p. 68.

Reed, Dan, The American Eagle: The Ascent of Bob Crandall and American Airlines, New York: St. Martin's Press, 1993.

Serling, Robert J., Eagle: The Story of American Airlines, New York: Dial, 1980.

Tiburzi, Bonnie, Takeoff! The Story of America's First Woman Pilot for a Major Airline, New York: Crown, 1984.

Turk, Paul, "American: Skills for Sale," Airline Business, March 1993, pp. 60+.

Wong, Edward, "Pass Ideas to Center Aisle. American Needs 'Em," New York Times, July 21, 2002, p. 1.

------, "Relying on Business Clients, AMR Posts a Loss," New York Times, October 17, 2002, p. 3.

Woodbury, Richard, "How the New No. 1 Got There," Time, May 15, 1989.

Zellner, Wendy, "Portrait of a Project As a Total Disaster," Business Week, January 17, 1994, p. 36.

Zellner, Wendy, and Nicole Harris, "Where Are All Those Airline Tie-Ups Headed?," Business Week, May 11, 1998, pp. 32-33.

Zellner, Wendy, Mike McNamee, and Seth Payne, "Did Clinton Scramble American's Profit Picture?," Business Week, December 6, 1993, p. 44.

Zuckerman, Laurence, "At American, the Successor Bets Boldly," New York Times, January 13, 2001, p. C1.

— John Simley


Poker Guide: American Airlines
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This term describes when a player's hole cards consist of two aces.

SoundPoker Says: In Texas Hold'em American Airlines (A-A) is the best starting hand pre-flop. This hand gives you the highest ranked pair before the community cards even hit the board. With this hand you should raise pre-flop in almost all table situations.

See Also: Aces, Board, Community Cards, Hand, Hit, Hole Cards, Pocket Rockets, Pre-Flop, Rank

Wikipedia: American Airlines
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American Airlines
American Airlines logo.svg
IATA
AA
ICAO
AAL
Callsign
AMERICAN
Founded 1930 (as American Airways)
Hubs
Focus cities
Frequent flyer program AAdvantage
Member lounge Admirals Club
Alliance
Fleet size 608 (+122 Orders)[4]
Destinations 157 excl.code-shares
Company slogan We know why you fly.
Parent company AMR Corporation`
Headquarters Fort Worth, Texas, United States
Key people Gerard Arpey (CEO)
Tom Horton (CFO)
Website aa.com
Headquarters of AMR Corporation and American Airlines

American Airlines, Inc. (AA) is a major airline of the United States.[5] It is the world's largest airline in passenger miles transported[6] and passenger fleet size; third largest, behind FedEx Express and Delta Air Lines, in aircraft operated; and second behind Air France-KLM in operating revenues.[7] A subsidiary of the AMR Corporation, the airline is headquartered in Fort Worth, Texas, adjacent to the Dallas/Fort Worth International Airport.[8] American operates scheduled flights throughout the United States, and flights to Canada, Latin America, the Caribbean, Europe, Japan, the People's Republic of China, and India. The Chairman, President, and CEO of AA is Gerard Arpey. In 2005, the airline flew more than 138 billion revenue passenger miles (RPM).

Contents

Overview

In May 2008, American served 260 cities (excluding codeshares with partner airlines) with 655 aircraft.[4] American carries more passengers between the US and Latin America (12.1 million in 2004) than any other airline, and is also strong in the trans/inter/intracontinental market. American Airlines' total revenue for the year was 23.8 Billion, of which $18.2 Billion came from Mainline division, $2.49B from Regional, and $874 Million from Cargo.[9]

American has four hubs: Dallas/Fort Worth (DFW), Chicago (ORD), Miami (MIA), and New York (JFK).[2] Dallas/Fort Worth is the airline's largest hub, with AA operating 85 percent of flights at the airport and traveling to more destinations than from its other hubs. Los Angeles (LAX), St. Louis (STL), San Juan (SJU), and Boston (BOS) serve as focus cities and international gateways. American currently operates maintenance bases at Tulsa (TUL), Kansas City (MCI), and Fort Worth Alliance (AFW), but American has announced that the Kansas City base will close in September 2010.[10]

American Airlines has one regional affiliate:

Communication

In 1967, Massimo Vignelli designed the famous AA Logo.[12][13] Thirty years later, in 1997, American Airlines was able to make its logo internet-compatible by buying the domain AA.com.[14] AA also corresponds to the Airlines IATA number. The original AA logo is still in use today, being "one of the few logos that simply needs no change".

In March 2000, American received the CIO Magazine's 2000 Web Business 50/50 Award for its AA.com web site.

History

Formation

American Airlines was developed from a conglomeration of 82 small airlines through acquisitions and reorganizations: initially, American Airways was a common brand by a number of independent carriers. These included Southern Air Transport in Texas, Southern Air Fast Express (SAFE) in the western US, Universal Aviation in the Midwest (which operated a transcontinental air/rail route in 1929), Thompson Aeronautical Services (which operated a Detroit-Cleveland route beginning in 1929) and Colonial Air Transport in the Northeast.

On January 25, 1930, American Airways was incorporated as a single company, based in New York, with routes from Boston, New York and Chicago to Dallas, and from Dallas to Los Angeles. The airline operated wood and fabric-covered Fokker Trimotors and all-metal Ford Trimotors. In 1934 American began flying Curtiss Condor biplanes with sleeping berths.

American Airlines before World War II

DC-3 "Flagship," American's chief aircraft type during the World War II period.

In 1934 American Airways Company was acquired by E.L. Cord, who renamed it "American Air Lines". Cord hired Texas businessman C.R. (Cyrus Rowlett) Smith to run the company.

Smith worked with Donald Douglas to develop the DC-3, which American Airlines started flying in 1936. With the DC-3, American began calling its aircraft "Flagships" and establishing the Admirals Club for valued passengers. The DC-3s had a four-star "admiral's pennant" outside the cockpit window while the aircraft was parked, one of the most well-known images of the airline at the time.

American Airlines was first to cooperate with Fiorello LaGuardia to build an airport in New York City, and partly as a result became owner of the world's first airline lounge at the new LaGuardia Airport (LGA), which became known as the Admirals Club. Membership was initially by invitation but a discrimination suit decades later changed the club into a paid club, creating the model for other airline lounges.

Postwar developments

After World War II, American launched an international subsidiary, American Overseas Airlines, to serve Europe; AOA was sold to Pan Am in 1950. AA launched another subsidiary, Líneas Aéreas Americanas de Mexico S.A., to fly to Mexico and built several airports there. American Airlines provided advertising and free usage of its aircraft in the 1951 film Three Guys Named Mike.[15]

American Airlines introduced the first transcontinental jet service using Boeing 707s on January 25, 1959. With its Astrojets, as it dubbed the jet fleet, American shifted to nonstop coast-to-coast flights, although it maintained feeder connections to cities along its old route using smaller Convair 990s and Lockheed Electras. American invested $440 million in jet aircraft up to 1962, launched the first electronic booking system (Sabre) with IBM, and built an upgraded terminal at Idlewild (now JFK) Airport in New York City which became the airline's largest base.[16]

By September 1970, American Airlines was offering its first long haul international flights from St Louis to Honolulu and onto Sydney and Auckland via American Samoa and Nadi. Source 1Source 2


From 1971–1978 Beverly Lynn Burns worked as a stewardess for AA. She went on to become the first woman Boeing 747 airline captain.[citation needed]

In 1975 American Airlines was headquartered at 633 Third Avenue in the Murray Hill area of Midtown Manhattan, New York City.[17][18] In 1978 American announced that it would move its headquarters to a site at Dallas/Fort Worth International Airport in 1979. The move affected up to 1,300 jobs. Mayor of New York City Ed Koch described this move as "betrayal" of New York City.[19] American moved to two leased office buildings in Grand Prairie, Texas.[20]

Expansion in the 1980s and 1990s

After moving headquarters to Fort Worth in 1979, American changed its routing to a hub-and-spoke system in 1981, opening its first hubs at DFW and Chicago O'Hare. Led by its new chairman and CEO, Robert Crandall, American began flights from these hubs to Europe and Japan in the mid-1980s.

The airline finished moving into a $150 million (1983 dollars), 550,000 square feet (51,000 m2) facility in Fort Worth on January 17, 1983; $147 million in Dallas/Fort Worth International Airport bonds financed the headquarters. The airline began leasing the facility from the airport, which owns the facility.[20]

In the late 1980s, American opened three hubs for north-south traffic. San Jose International Airport was added after American purchased AirCal. American also built a terminal and runway at Raleigh-Durham International Airport for the growing Research Triangle Park nearby and compete with USAir's hub in Charlotte. Nashville was also a hub. In 1988, American Airlines received its first Airbus A300B4-605R jets. Some A300's from American Airlines were built in the early 90's.

In 1990, American Airlines bought the assets of TWA's operations at London Heathrow for $445 million, giving American a hub there. The US/UK Bermuda II treaty, in effect until open skies came into effect in April 2008, barred U.S. airlines from Heathrow with the sole exceptions of American and United Airlines.

Lower fuel prices and a favorable business climate led to higher than average profits in the 1990s. The industry's expansion was not lost on pilots who on February 17, 1997 went on strike for higher wages. President Bill Clinton invoked the Railway Labor Act citing economic impact to the United States, quashing the strike.[21] Pilots settled for wages lower than their demands.

Boeing 767-300ER taking off

The three new hubs were abandoned in the 1990s: some San Jose facilities were sold to Reno Air, and at Raleigh/Durham to Midway Airlines. Midway went out of business in 2001. American purchased Reno Air in February 1999 and integrated its operations on August 31, 1999, but did not resume hub operations in San Jose. American discontinued most of Reno Air's routes, and sold most of the Reno Air aircraft, as they had with Air California 12 years earlier. The only remaining route from the Air California and Reno Air purchases is San Francisco to Los Angeles.

During this time, concern over airline bankruptcies and falling stock prices brought a warning from American's CEO Robert Crandall. "I've never invested in any airline," Crandall said. "I'm an airline manager. I don't invest in airlines. And I always said to the employees of American, 'This is not an appropriate investment. It's a great place to work and it's a great company that does important work. But airlines are not an investment.'" Crandall noted that since airline deregulation of the 1970s, 150 airlines had gone out of business. "A lot of people came into the airline business. Most of them promptly exited, minus their money," he said.[citation needed]

Miami became a hub after American bought Central and South American routes from Eastern Air Lines in 1990 (inherited from Braniff International Airways but originated by Panagra). Through the 1990s, American expanded its network in Latin America to become the dominant U.S. carrier in the region.

On October 15, 1998 American Airlines became the first airline to offer electronic ticketing in the 44 countries it serves.

TWA merger, 9/11, to the present

Robert Crandall left in 1998 and was replaced by Donald J. Carty, who negotiated the purchase of the near bankrupt Trans World Airlines (it would file for its 3rd bankruptcy as part of the purchase agreement)[22][23][24] and its hub in St Louis in April 2001.

The merger of seniority lists remains contentious for pilots; the groups were represented by different unions. In the merger, 60 percent of former TWA pilots moved to the bottom of the seniority list at AA. All were furloughed, and most remain on furlough. The senior TWA captains were integrated at the same seniority level as AA captains hired years later.[citation needed] All TWA captains and first officers hired in March 1989 and later were appended to the seniority list junior to American Airlines first officers hired in June 2001. However, TWA pilots were given super-seniority and a ratio of positions as captain if they stayed in St Louis. The result was that most former TWA pilots stayed in St Louis and roughly maintained their relative seniority; though, some left St Louis and flew in the co-pilot seat next to AA pilots who may have been hired at a later date, but are more senior outside the protections afforded to that base. The extensive furloughs of former TWA pilots in the wake of the 9/11 attacks disproportionately affected St. Louis and resulted in a significant influx of American Airlines pilots. For cabin crews, all former TWA flight attendants (approximately 4,200) were furloughed by mid-2003 due to the AA flight attendants' union putting TWA flight attendants at the bottom of their seniority list.

American Airlines began losing money in the wake of the TWA merger and the September 11, 2001 attacks (in which two of its planes were involved). Carty negotiated wage and benefit agreements with the unions but resigned after union leaders discovered he was planning to award executive compensation packages at the same time. The St Louis hub was also downsized.

American has undergone additional cost-cutting, including rolling back its "More Room Throughout Coach" program (which eliminated several rows of seats on certain aircraft), ending three-class service on many international flights, and standardizing its fleet at each hub (see below). However, the airline also expanded into new markets, including Ireland, India and mainland China. On July 20, 2005, American announced a quarterly profit for the first time in 17 quarters; the airline earned $58 million in the second quarter of 2005.

AA was a strong backer of the Wright Amendment, which regulated commercial airline operations at Love Field in Dallas. On June 15, 2006, American agreed with Southwest Airlines and the cities of Dallas and Fort Worth to seek repeal of the Wright Amendment on condition that Love Field remained a domestic airport and its gate capacity be limited.[25]

On July 2, 2008, American announced furloughs of up to 950 flight attendants, via Texas' Worker Adjustment and Retraining Notification Act system.[26] This furlough is in addition to the furlough of 20 MD-80 aircraft.[27] American's hub at San Juan, Puerto Rico's Luiz Muñoz Marin International Airport, will be truncated from 38 to 18 daily inbound flights, but the carrier will retain service in a diminished capacity.[28]

On August 13, 2008, the Kansas City Star reported that American would move some overhaul work from its Kansas City, Missouri base. Repairs on Boeing 757s will be made in Tulsa, Oklahoma, and some 767 maintenance will move there as well; one, possibly two, Boeing 767 repair lines will be retained at Kansas City International Airport. The narrow-body repair hangar will be shut. The city's aviation department offered to upgrade repair facilities on condition that the airline maintain at least 700 jobs.[29]

On June 26, 2009, rumors of a merger with US Airways resurfaced to much speculation within the online aviation community.[30]

In August 2009, American was placed under credit watch, along with United Airlines and US Airways.[citation needed].All Airbus A300 jets from American Airlines were retired by the end of August, all of these American Airlines Airbus A300 jets are currently stored in KROW, known as Roswell International Air Center, in Roswell, New Mexico, USA.

On October 28, 2009, American notified its employees that it would close its Kansas City maintenance base in September 2010, and would also close or make cutbacks at five smaller maintenance stations, resulting in the loss of up to 700 jobs.[10]

MD-80 maintenance controversies and consequences

American Airlines has had repeated run-ins with the FAA regarding maintenance of its MD-80 fleet; the costs associated with operating these jets has affected American's bottom line. American Airlines canceled 1,000 flights to inspect wire bundles over three days in April 2008 to make sure they complied with government safety regulations.[31] This caused significant inconvenience to passengers and financial problems for the airline. American has begun the process of replacing its older MD-80 jets with Boeing 737s. The newer MD-80s will continue to serve until the next generation Boeing narrowbody aircraft (Y1) is available.

In September 2009, the Associated Press and The Wall Street Journal reported that American was accused of hiding repeated maintenance lapses on at least 16 MD-80s from the FAA. Repair issues included such items as faulty emergency slides, improper engine coatings, incorrectly drilled holes and other examples of shoddy workmanship. The most serious alleged lapse is a failure to repair cracks to pressure bulkheads; the rupture of a bulkhead could lead to cabin depressurization. It is also alleged that the airline retired one airplane in order to hide it from FAA inspectors; the airline countered that FAA inspectors always have full access to any airplane, retired or not.[32][33]

In May 2008, a month after mass grounding of aircraft, American announced capacity cuts and fees to increase revenue and help cover high fuel prices. The airline increased fees such as a $15 charge for the first checked bag and $25 for the second, as well as a $150 change fee for domestic reservations. American Airlines announced in May that it expected to retire 40 to 45 mainline aircraft in fall 2008, the majority fuel-inefficient MD-80s but also some Airbus A300s. American's regional airline, American Eagle Airlines, will retire 35 to 40 regional jets as well as its Saab turboprop fleet.

Potential negotiations with Japan Airlines

On September 12, 2009, American Airlines' parent company, AMR Corporation announced that they were looking into buying some of the financially struggling Japan Airlines.[34] AMR is not the only company planning to buy a stake in the airline but rival airline, Delta Air Lines is also looking into investing in the troubled airline, along with Delta's partner Air France-KLM. Both Delta and AF-KLM are part of SkyTeam, Oneworld's alliance rival.[35] Japan Airlines called off negotiations of the possible deal with all airlines on October 5, 2009.

On October 21, 2009, Gerard Arpey, the CEO of American Airlines, said the airline and its Oneworld Alliance of global airlines remains committed to a partnership with Japan Airlines, as long as the carrier remains a major international carrier.[36]

On November 18, 2009, Delta with the help from TPG made a bid of $1 Billion for JAL to partner with them. Two days later, reports came from Japan that AA and TPG had teamed up and made a $1.5 Billion cash offer to JAL, which they might consider doing. [37]

Slogans

  • Current - "We know why you fly."
  • AA/TWA merger - "Two great airlines, one great future."
  • 2001 (post-9/11) - "We are an airline that is proud to bear the name American."
  • Mid 1990s - "Based Here. Best Here."
  • Late 1980s - "No other Airline gives you more of America, than American."
  • Mid 1980s-mid 1990s - "Something special in the air." (Variant used for website: "Something special online.", Spanish variant: "Todo es especial, tu eres especial.")
  • 1982-late 1980s - "En American, tenemos lo que tu buscas." (Spanish slogan, translated loosely to "At American, we've got what you're looking for").
  • 1980s-1988- "The On-Time Machine."
  • 1970s-1980s - "We're American Airlines, doing what we do best."
  • Early 1970s - "It's good to know you're on American Airlines."
  • 1967–1969 - "Fly the American Way."
  • 1964–1967 - "American built an airline for professional travelers."
  • 1950s-early 1960s - "America's Leading (domestic) Airline."

Destinations

American Airlines destinations.      USA      American Airlines destinations
AA aircraft at Concourse D, Miami International Airport

American Airlines serves four continents. Hubs at Dallas/Fort Worth and Miami serve as gateways to the Americas, while American's Chicago hub has become the airline's primary gateway to Europe and Asia. New York Kennedy (JFK) is a primary gateway for both the Americas and Europe, while New York La Guardia (LGA) is a regional hub. Lambert-St. Louis International Airport has served as a regional as well for several years. However, the airline's 2009 restructuring will lead to the airport being removed as a hub in the summer of 2010.[38] American serves the second largest number of international destinations, second to Continental Airlines.

American is the only U.S. airline with scheduled flights to Anguilla, Bolivia, Dominica, Grenada, Saint Vincent and the Grenadines, and Uruguay.

American has begun to expand in Asia, with mixed success. In 2005, American re-introduced a non-stop flight from Dallas/Fort Worth to Osaka-Kansai, which has since been discontinued. American also launched non-stop service from Chicago to Nagoya-Centrair, but that too ended within a year. Also in 2005, American launched service from Chicago to Delhi.[39] In April 2006, American began service from Chicago to Shanghai, also profitably. However, in October 2006, American ceased its San Jose, California to Tokyo-Narita service, leaving LAX as American's sole international gateways on the West Coast. American planned flights between Dallas/Fort Worth and Beijing via Chicago-O'Hare (on Westbound only) in 2007 but lost its bid to United Airlines' Dulles to Beijing route. AA was granted permission in September 2007 to start a Chicago-Beijing route in a new set of China routes in 2009,[40] but currently plans to begin service April 4, 2010.[41] American Airlines delayed the launched of the new China route from April 4 to May 1, 2010.[42] The Chicago-Beijing launch date was changed again from May 1, 2010 to April 26, 2010[43].

Fleet

As of October 2009, the American Airlines fleet consists of 603 aircraft.[44]

In August 2007 the airline announced it would offer Wi-fi internet services on Boeing 767-200ER flights across the United States.[45] On August 20, 2008, American Airlines became the first to offer full inflight internet service.[46]

In October 2008, American announced plans to order the Boeing 787-9 Dreamliner.[47]

American is the largest operator of the McDonnell Douglas MD-80, with some 300 of the type. As part of its fleet renewal plan, American is replacing one-fourth of its MD-80s with the Boeing 737-800, which offers a 35 percent increase per-seat mileage.[48] The rest will eventually be replaced by Boeing's next generation narrow body aircraft, the Boeing Y1, which may not be until 2020 or later. American Airlines has stated that they have MD-80 leases running until as late as 2024.

In August 2009, American officially retired its fleet of Airbus A300 aircraft, after 21 years of service. American has not made plans to replace this fleet.

Current

American Airlines had an average fleet age of 15.6 years in August 2009.[49] American Airlines now operates an all Boeing fleet (which they include MD/Douglas) due to the retirement of the Airbus A300 aircraft in 2009.

American Airlines Fleet
Aircraft In
Service
Orders Purchase Rights Passengers
(First/Business/Economy)
Routes IFE Introduction Notes
Boeing 737-800 99 73 0 Old Configuration: 148 (16/132)
New Configuration:
160 (16/144)
North American short-medium haul, Caribbean, Mexico, South America
Overhead monitors, audio 1999 The oldest MD-82s and MD-83s are being replaced with 737-800s. The rest will be replaced with Boeing's 737 replacement (Y1)
Boeing 757-200 124 0 0 190 (24/166)
188 (22/166)
182 (16/166)
Domestic, Caribbean, South America, Hawaii, Europe
Overhead monitors, audio 1989 All fitted with winglets
To be fitted with new interiors
18 to be modified to an international version
Boeing 767-200ER 15 0 0 159 (10/30/119) MIA to JFK, LAX and SFO
JFK to LAX and SFO
EWR to LAX
Personal media player offered in First and Business Class on transcontinental flights
Overhead monitors and audio system in all classes
1986 All 15 aircraft are fitted with three classes and operate flagship service on transcontinental routes.
Boeing 767-300ER 58 0 0 225 (30/195) Transatlantic, South America
Hawaii, hub to hub domestic
Personal DVD Player offered in Business Class,
Overhead monitors in Economy, audio in both classes
1988 5 fitted with winglets[50]
To be fitted with winglets[51]
Fitted with New Business Class.
Boeing 777-200ER 47 7[52] 0 247 (16/37/194) Transatlantic, transpacific, South America, hub to hub domestic AVOD, Audio 1999 Fitted with Flagship Suites
Fitted with New Business Class
Fitted with AVOD in First/Business Class
Fitted with AVOD in Economy class
Boeing 787-9 0 42
(see note)
58 TBD Long haul TBD 2013
(see note)
Boeing has confirmed that the 787-9 will not enter service before 2013[53] and AA forecasts that the first aircraft will be delivered in late 2013.[54]
McDonnell Douglas MD-82 184 0 0 136 (16/120)
140 (16/124)
Short, Medium Haul Domestic, Mexico and Canada None 1983 Largest operator of the MD-82
Oldest being replaced by: Boeing 737-800
The rest will be replaced with Boeing's 737 replacement (Y1)
McDonnell Douglas MD-83 81 0 0 136 (16/120)
140 (16/124)
Short, medium haul domestic, Mexico and Canada None 1987 Largest operator of the MD-83
Oldest being replaced by: Boeing 737-800
The rest will be replaced with Boeing's 737 replacement (Y1)
Total 608 122 58

*Aircell Internet Broadband access is being installed on all Boeing 767-200 and Boeing 737-800 aircraft.[55]

Historical fleet types

1930s 1940s 1950s 1960s 1970s 1980s 1990s 2000s
Ford 5-AT
1930–1935
DC-3
1936–1949
BAC 111
1965–1972
McDonnell Douglas MD-80
1979 - [Present]
Curtiss Condor
1934 - [Present]
Lockheed L-188 Electra
1958–1970
737 & BAe 146
1987–1992
Fokker 100
1992–2004
Fairchild 100
1931 - [Present]
Convair 240
1948–1964
Boeing 727
1964–2002
DC-6
1947–1966
Airbus A300
1988–2009
DC-4
1946–1953
DC-7
1953–1959
Boeing 707
1959–1981
Boeing 757
1989 - [Present]
C-990
1962–1969
Boeing 737NG
1999 - [Present]
B-377
1946–1950
Boeing 747-100
1970–1989
Boeing 747SP
1986–1994
Boeing 777
1999 - [Present]
McDonnell Douglas DC-10
1971–2000
Boeing 767
1982 - [Present]
MD-11
1991–2002
Former AA 747-100 carrying the Space Shuttle Enterprise

Notes:

AAdvantage

AAdvant 375X117.png

AAdvantage is the frequent flyer program of American Airlines. Launched May 1, 1981, it was the first such loyalty program in the world, and remains the largest with more than 50 million members as of 2005.[59]

Miles accumulated in the program allow members to redeem tickets, upgrade service class, or obtain free or discounted car rentals, hotel stays, merchandise, or other products and services through partners. The most active members, based on the amount and price of travel booked, are designated AAdvantage Gold, AAdvantage Platinum, and AAdvantage Executive Platinum elite members, with privileges such as separate check-in, priority upgrade and standby processing, or free upgrades. They also receive similar privileges from AA's partner airlines, particularly those in Oneworld.[60]

History

DFW American Airlines Departure

Increased competition following the 1978 Airline Deregulation Act prompted airline marketing professionals to develop ways to reward repeat customers and build brand loyalty. The first idea at American, a special "loyalty fare", was modified and expanded to offer free first class tickets and upgrades to first class for companions, or discounted coach tickets. Membership was seeded by searching AA's SABRE computer reservations system for recurring phone numbers. The 130,000 most frequent flyers, plus an additional 60,000 members of AA's Admirals Club were pre-enrolled and sent letters with their new account numbers. The name was selected by AA's advertising agency, and is consistent with other American Airlines programs featuring "AA" in the name and logo. The logo was designed by Massimo Vignelli.[61]

Less than a week later, rival United Airlines launched its Mileage Plus program; other airlines followed in the ensuing months and years. The rapid appearance of competition changed the nature of the program, and as airlines began to compete on the features of their frequent flyer programs, AAdvantage liberalized its rules, established partnerships with hotel and rental car agencies, and offered promotions such as extra free beverages. In 1982 AAdvantage also became the first program to cooperate with an international carrier; members could accrue and redeem miles on British Airways flights to Europe.[citation needed]

In 2005 American Airlines joined other major US carriers in introducing an online shopping portal allowing shoppers to earn AAdvantage miles when shopping online.

Partnerships

In addition to its Oneworld, American Connection, and American Eagle partnerships, American Airlines offers frequent flier partnerships with the following airlines and railways:[62]

Airlines

Railways

Environmental record

The Texas Commission on Environmental Quality has awarded American Airlines its 2005 Governor's Award for its outstanding efforts in environmental protection and pollution prevention. American Airline's wastewater treatment plant recycles water used at the base of the wash aircraft, process rinse water tanks, and irrigates landscape. That alone has saved almost 1 million dollars since 2002. In addition to that, American Airlines has also won the award for the reduction of hazardous waste that saved them 229,000 dollars after a 2,000 dollar investment. A bar code system used is to track hazardous waste. It has led to reduction of waste by 50 percent since 2000.[64]

Violations occurring over a 4½ year period — from October 1993 to July 1998 — targeted American Airlines for using high-sulfur fuel in motor vehicles at 10 major airports around the country. Under the federal Clean Air Act high sulfur fuel cannot be used in motor vehicles. American Airlines promptly identified and corrected these violations of the Clean Air Act.[65]

American Airlines Vacations

American Airlines Vacations is a subsidiary of American Airlines, which is a subsidiary of AMR Corporation. American Airlines Vacations, based in Dallas/Fort Worth, Texas, is the largest airline-owned tour operator in the United States.

History: The division was initially founded over 25 years ago under the name FlyAAway Vacations. The name was eventually changed to AAV Tours. Today it operates as American Airlines Vacations, offering vacations in the Caribbean, Mexico, Hawaii, Europe, Canada, the United States, Latin America and Asia. American Airlines Vacations is the only travel company that allows payment with AAdvantage miles.

The current president of American Airlines Vacations is Suzanne Rubin.
American Airlines Vacations is a member of the International Air Transport Association (IATA).

Admirals Club

AA Admirals Club.png

The Admirals Club was conceived by AA president C.R. Smith as a marketing gimmick shortly after he was made an honorary Texas Ranger. Inspired by the Kentucky colonels and other honorary organizations, Smith decided to make particularly valued passengers "admirals" of the "Flagship fleet" (AA called its aircraft "Flagships" at the time). The list of Admirals included many celebrities, politicians and other VIPs, as well as more "ordinary" customers who had been particularly loyal to the airline.

There was no physical Admirals Club until shortly after the opening of LaGuardia Airport. During the airport's construction, New York Mayor Fiorello LaGuardia had an upper-level lounge set aside for press conferences and business meetings. At one such press conference, he noted that the entire terminal was being offered for lease to airline tenants; after a reporter asked whether the lounge would be leased as well, LaGuardia replied that it would, and a vice president of AA immediately offered to lease the premises. The airline then procured a liquor license and began operating the lounge as the "Admirals Club" in 1939.

The second Admirals Club opened at Washington National Airport. Because it was illegal to sell alcohol in Virginia at the time, the Club contained refrigerators for the use of its members, so they could store their own liquor at the airport. For many years, membership in the Admirals Club (and most other airline lounges) was by the airline's invitation. After a passenger sued for discrimination,[66] the Club (and most other airline lounges) switched to a paid membership program.

Membership now costs $300 to $450 a year, depending on AAdvantage frequent flyer program level (and annual renewal membership costs $250–$400); membership can also be purchased with AAdvantage miles.

Locations

[67]

Flagship Lounge

Though affiliated with the Admirals Club and staffed by many of the same employees, the AA Flagship Lounge is a separate lounge specifically designed for premium customers flying on premium flights both domestically within the United States and internationally. This means that only First Class passengers on 3-Class Aircraft, both Internationally and Transcontinentally, are granted entrance to these clubs. A 3-Class aircraft operating a non-transcon flight and not sold as 3-Class is not considered Premium, and entrance is not granted to passengers on this type of service. Lounge access is granted to passengers on non-AA operated flights flown by select airline partners as well, again, as long as the flight has a true International First Class cabin and the passenger is booked in that class as a paying customer or on a premium cabin frequent flyer award ticket (not as an upgrade). The only exception to this rule is for OneWorld Emerald elite FF members (including AA Executive Platinum) on international flights (excluding Canada, the Caribbean, and Mexico except Mexico City), and non-AAdvantage OneWorld Emerald elite FF members on 'domestic' flights, who are granted access to the lounges traveling in any class.[68]

The added amenities of the Flagship Lounges compared to the normal Admirals Club include free alcoholic beverages including premium brands not found in the Admirals Club, free premium buffet snacks including breakfast items, salads, sandwiches, fruits, chocolates, cheeses and other light fare (options change based on time of day), as well as a less crowded, more comfortable lounge space. Additionally, complimentary Lenovo computer terminals with free internet access, complimentary T-Mobile hotspot access, and complimentary printing is available at most locations, as are shower facilities. The AA Flagship Lounge concept is similar to First Class lounges offered by other airlines around the world, though many international carriers offer full meal services, massages and other amenities in First lounges that AA does not.

The first Flagship Lounge was opened at Dallas Fort Worth International Airport as a courtesy to First Class customers preparing for long flights to London and Tokyo. While the Dallas lounge is no longer open, Flagship Lounges are now available at:

Codeshare agreements

American has codeshare agreements with the following airlines:

AmericanConnection, which feeds American's hub at Lambert Saint Louis International Airport, is also a codesharing operation with three regional carriers. It also has reciprocal agreements for earning frequent flyer miles with several airlines, including all other members of the Oneworld alliance.

Livery

American's early liveries varied widely, but a common livery was adopted in the 1930s, featuring an eagle painted on the fuselage. The eagle became a symbol of the company and inspired the name of American Eagle Airlines. Propeller aircraft featured an international orange lightning bolt running down the length of the fuselage, which was replaced by a simpler orange stripe with the introduction of jets.

A Boeing 737 in the Astrojet livery
A Boeing 767-300 in current colours takes off from Manchester International Airport, England, bound for Chicago, US

In the late 1960s, American commissioned an industrial designer to develop a new livery. The original design called for a red, white, and blue stripe on the fuselage, and a simple "AA" logo, without an eagle, on the tail. However, American's employees revolted when the livery was made public, and launched a "Save the Eagle" campaign similar to the "Save the Flying Red Horse" campaign at Mobil.[citation needed] Eventually, the designer caved in and created a highly stylized eagle, which remains the company's logo to this day. In 1999, American painted a new Boeing 757 in its 1959 international orange livery. There is a Boeing 737-800 painted in the retro AstroJet livery.

American is the only major U.S. airline that leaves the majority of its aircraft surfaces unpainted. This was because C. R. Smith hated painted aircraft, and refused to use any liveries that involved painting the entire plane. Robert "Bob" Crandall later justified the distinctive natural metal finish by noting that less paint reduced the aircraft's weight, thus saving on fuel costs.[71] Eastern Air Lines, US Airways, Flying Tigers, Dominicana, Cathay Pacific Cargo and Northwest Airlines have also maintained unpainted airplanes.

SCA N905NA in 1978, with American pinstriping

NASA's Boeing 747 Shuttle Carrier Aircraft, with the registry N905NA, originally belonged to American Airlines, and in its early years still bore the distinct American pinstriping. By the early 1980s, however, NASA decided to discontinue using the American livery and replaced it with its own livery, consisting of a white fuselage and blue pinstriping.

On-board service

On domestic flights and flights to Canada, Central America, and areas in the Caribbean (including the Dominican Republic), American Airlines offers a buy on board program offering sandwiches and snacks for purchase. Flights two hours or longer have snacks, and flights three hours or longer have sandwiches. Transcontinental flights and Hawaii flights have the "Premium Sandwich and Chip Combo" for purchase. Buy on board service to Central America and the Dominican Republic began on March 1, 2009. American will continue to offer free coach meals on flights to Europe, Haiti, Japan, and other destinations.[72][73]

In First and Business classes, on all domestic flights of two hours or more that operate within a traditional meal time, full meal service is included. Flights with a duration longer than two and one half hours that do not fall within a meal time have snack service for those classes.[72] First class and business class passengers receive alcoholic beverages for free. Non-alcoholic beverages are free for all classes.[74]

Blankets and pillows are provided free of charge. Headsets are two dollars on domestic flights and free on flights to/from Europe, Asia, India and South America. Headsets are also free to passengers in First and Business Classes.[75]

Accidents and incidents

Miscellaneous

  • In the 1960s, Mattel released a series of American Airlines stewardess Barbie dolls.
  • A fictitious "American Airlines Space Freighter", the Valley Forge, was the setting for the 1971 science fiction movie Silent Running, starring Bruce Dern and directed by Douglas Trumbull. The freighter featured the then-new "AA" logo on the hull, along with the crew uniforms and several set pieces.
  • On 30 March 1973 AA became the first major airline to employ a female pilot when Bonnie Tiburzi was hired to fly Boeing 727s.
  • AA lobbied heavily to be assigned the IATA airline code US upon the US military releasing it for non-military use. However, USAir ultimately won the bid for the US airliner code.
  • The airline received a 100% rating on the first Corporate Equality Index released by the Human Rights Campaign in 2002 and has maintained their rating in respect to policies on employees.
  • AA is the only legacy carrier in the United States which has not filed for Chapter 11 bankruptcy protection.
  • Vignelli Associates designed the AA eagle logo in 1967. Vignelli attributes the introduction of his firm to American Airlines to Henry Dreyfuss, the legendary AA design consultant. The logo is still in use today.
  • AA has its name on two major U.S. venues, American Airlines Center in Dallas, home to the Mavericks and Stars, and American Airlines Arena in Miami, home to the Miami Heat. When the Heat and Mavericks played each other in the 2006 NBA Finals, it was referred to as the "American Airlines series."
  • AA appears in the movie Up in the Air.
  • An American Airlines ( Airways) DC2 was the setting for Shirley Temple to sing, "On the Good Ship Lollipop" while James Dunn took her up. contrary to popular belief, the good ship lollipop was always an airplane and not a seagoing ship. See the film "Curly Top" for some fine aeronautical footage of the DC2 and the even earlier Curtis Condor airliner (biplane).

Sources

  • John M. Capozzi, A Spirit of Greatness (JMC, 2001), ISBN 0-9656410-3-1
  • Don Bedwell, Silverbird: The American Airlines Story (Airways, 1999), ISBN 0-9653993-6-2
  • Al Casey, Casey's Law (Arcade, 1997), ISBN 1-55970-307-5
  • Simon Forty, ABC American Airlines (Ian Allan, 1997), ISBN 1-882663-21-7
  • Dan Reed, The American Eagle: The Ascent of Bob Crandall and American Airlines (St. Martin's, 1993), ISBN 0-312-08696-2
  • Robert J. Serling, Eagle (St. Martin's, 1985), ISBN 0-312-22453-2
  • International Directory of Company Histories, St. James Press.

References

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  13. ^ Iconic Logo Designers
  14. ^ Global Brands that own a Two Letter Domain
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  35. ^ Delta Air Lines also after stake in Japan Airlines
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