{"id":68202,"date":"2022-07-05T00:00:00","date_gmt":"2022-07-05T00:00:00","guid":{"rendered":"https:\/\/nursingstudybay.com\/2022\/07\/05\/american-airlines\/"},"modified":"2022-07-05T00:00:00","modified_gmt":"2022-07-05T00:00:00","slug":"american-airlines","status":"publish","type":"post","link":"https:\/\/www.studyproessays.com\/help\/american-airlines\/","title":{"rendered":"American Airlines"},"content":{"rendered":"
\n

Situational Analysis:
\nInternal factors:
\nStrengths:
\nJoint Venture with Japanese Airline
\nPartnership with JetBlue
\nMember of oneworld alliance
\nInternational \u2013 Flies to North America, the Caribbean, South America, Europe and Asia Number of routes
\nAAdvantage frequent flyer program<\/p>\n

Weaknesses:
\nOlder airplanes
\nUnstable chairs on their airplanes
\nCurrent financial situation<\/p>\n

External factors:
\nOpportunities:
\nMerge with another airline
\nReorganization of their company
\nSuccessful retrenchment strategy
\nIncrease profits
\nUpdate planes
\nPurchase new aircrafts
\nSatisfy consumer needs<\/p>\n

Threats:
\nCompany filed for bankruptcy in November 2011
\nCompetition with competitors low cost strategy
\nPrice of fuel has increased
\nLabor costs have increased
\nUS economic slowdown<\/p>\n

Problem: American Airlines is struggling with higher costs, mainly, higher fuel costs and labor costs. These costs became so excessive, that American
\nAirlines had to declare bankruptcy. Alternative 1: American Airlines needs to emerge from bankruptcy as a profitable company, which would enable them to explore the possibility of a merger with another airline provided that the two airlines combined would provide efficiencies and higher profitability.<\/p>\n<\/p>\n

Strengths:
\nPotential increase in profits
\nOpportunity to eliminate duplicate costs
\nPotential to enhance brand recognition because now they will have more routes and more to offer
\nWeaknesses:
\nAlways potential for disruption and disorganization as the merger takes place The cost of the merger (usually underestimated)
\nMiscalculation of the difficulties of merging two corporate cultures<\/br><\/p>\n

Alternative 2: They must use the bankruptcy process to lower their labor cost, both by wage concessions and more efficient work roles. Strengths:
\nLower costs
\nMore efficiency of workers
\nPotential increase in profits
\nLead to lower flying inconveniences
\nHelp exit bankruptcy<\/p>\n

Weaknesses:
\nResistance from the employees
\nDisruptions could cause cancelations<\/p>\n

Alternative 3: Use the bankruptcy to lower other employee costs such as medical insurance and pension. Strengths:
\nLower labor costs
\nHelp exit bankruptcy
\nDecrease debt<\/p>\n

Weaknesses:
\nResistance by employees
\nWeaken relationships among employers and employees<\/p>\n

Recommendation:
\nMy recommendation would be alternative two: They must use the bankruptcy process to lower their labor cost, both by wage concessions and more efficient work roles. I\u2019m assuming that this alternative will lower costs the most. American Airlines needs to use the bankruptcy process to implement this alternative effectively. They need to go before the bankruptcy court asking them to cooperate to seek wage concessions and more efficient work roles.<\/p>\n

A combination of the legal department and the finance department need to be in charge of implementing this alternative. This is a legal matter but the finance department must explain to the legal department what is needed in terms of financial relief. This needs to be implemented as soon as possible. It must start in the bankruptcy court. This can be evaluated by examining if this alternative does lower cost without completely destroying employee to employer relationships. The finance department needs to evaluate their financial numbers (examining costs) on a monthly basis.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Situational Analysis: Internal factors: Strengths: Joint Venture with Japanese Airline Partnership with JetBlue Member of oneworld alliance International \u2013 Flies to North America, the Caribbean,\u2026<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7732,7731,7739,7735,7730,7734,7737,7740,7736,7733,7738,7741],"tags":[7807,6085,7801,7802,7803,7806,7811,7808,7809,7800,7804,7789,7805,7799,7812,7798,7795,7791,7794,7790,7792,7797,7793,7796,7810],"class_list":["post-68202","post","type-post","status-publish","format-standard","hentry","category-apps-to-help-with-writing-assignment","category-assignment-help-in-australia","category-assignment-help-website","category-assignment-helpers-for-students","category-essay-writing","category-help-students-with-assignment","category-i-will-pay-someone-to-do-my-assignments","category-looking-for-someone-to-do-my-assignments","category-pay-someone-to-do-my-assignment","category-paying-someone-to-do-assignment","category-university-assignment-hacks","category-studybay","tag-academic-writing-example","tag-creative-writing","tag-dissertation-correction","tag-dissertation-discussion","tag-dissertation-in-3-days","tag-dissertation-literature-review","tag-dissertation-tips","tag-how-to-write-a-cover-letter","tag-how-to-write-a-cv","tag-how-to-write-a-dissertation","tag-how-to-write-a-dissertation-quickly","tag-how-to-write-thesis-for-research","tag-i-will-pay-someone-to-write-my-essay","tag-nursing-academic-writing","tag-nursing-studybay","tag-nursing-thesis-topic-ideas","tag-research-study-thesis","tag-research-title-for-nursing-students","tag-research-topics-in-hrm","tag-thesis-hacks","tag-thesis-hacks-for-students","tag-thesis-tips","tag-thesis-topics-ideas","tag-website-for-thesis-research","tag-writing-my-dissertation-in-a-day"],"_links":{"self":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts\/68202","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/comments?post=68202"}],"version-history":[{"count":0,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts\/68202\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/media?parent=68202"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/categories?post=68202"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/tags?post=68202"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}