Transcript: Turnaround The company is offering many of the union workers voluntary bailout packages as part of labor deals that were reached with the unions. Nearly 2,200 flight attendants had lost their jobs, and took the $40,000 buyout offer, and American Airlines will be hiring 1,500 new flight attendants. The American Airlines management has said that they plan to be out of bankruptcy as an independent airline. They are still trying to brainstorm ideas for a full turnaround to be able to pull themselves out of bankruptcy, and they hope that they are able to be back making positive income soon. The company has stated that they would not have gone bankrupt if it was not for the multiple charges that they were forced to pay. They had to make multiple serverance payments. These payments that the company had to pay really led the company straight into bankruptcy. 2011 When the bankruptcy court allowed the airline to dump the pilots' contract last month, pilots began calling in sick and filing maintenance reports on items that airline management says were trivial. Due to this, flight cancellations had been increased, and the on time performance fell to less than %50. Workers Charges American Airlines Bankruptcy BY: Dillon Hunt Flight Cancellations The Airline Company American Airlines, had lost a reported $162 million in 2011. This is a very large amount of money, but it was not enough of a loss for the company to file for bankruptcy. The company had ended up filing for bankruptcy during the last full quarter in 2011, and the downward spiral had began.
Transcript: Sustainability Providing for the essential needs of our customers during flight irregularities is a key component of our customer service philosophy and commitment. Every American Airlines and American Eagle U.S. airport team has a comprehensive contingency plan in place to respond to operational challenges. Each plan ensures we will have adequate resources available, and designates a control person to coordinate the activities of the local team, as well as to communicate with our central operations center. At each U.S. airport we serve, or utilize for U.S. diversions, we have coordinated our plans with the local airport authority (including terminal operators, where applicable), U.S. Customs and Border Protection (CBP) and the Transportation Security Administration (TSA) and other airlines that serve the airport. Our plans stipulate that when a flight experiences a lengthy tarmac delay, customers will be offered snack food and potable water no later than two hours following gate departure or flight touchdown. Should a customer require urgent medical attention at any time, assistance will be provided. If aircraft lavatory servicing becomes necessary, this will be accomplished as soon as conditions will safely allow. On domestic flights customers will be given the opportunity to deplane the aircraft before the ground delay exceeds three hours. Passengers on delayed flights will receive notifications regarding the status of the delay every 30 minutes while the aircraft is delayed, including the reasons for the tarmac delay, if known. Passengers on a delayed flight will be notified beginning 30 minutes after the scheduled departure time and every 30 minutes thereafter that they have the opportunity to deplane from an aircraft that is at the gate or another disembarkation area, if the opportunity to deplane actually exists. On international flights operated by American Airlines or American Eagle, customers will be given the opportunity to deplane before the delay exceeds four hours At American Airlines and American Eagle, the safety and comfort of our customers is always an important priority, especially during flight delays. We are confident our contingency plans will lessen your inconvenience. stock symbol Reflection: it would be important to research information about a company before you buy their stock, so that you could be informed about it's history and know what your getting youself into and know what precautions if needed to take. Revenue American Airlines, Inc in Fort Worth, TX is a private company categorized under Airline Companies. Our records show it was established in 1934 and incorporated in Texas. Current estimates show this company has an annual revenue of $22,150,000,000 and employs a staff of approximately 65,525. Companies History 1920's On the morning of April 15, 1926, a young aviator named Charles A. Lindbergh stowed a bag of mail in his little DH-4 biplane and took off from Chicago for St. Louis. Later that day, he and two other pilots flew three plane loads of mail from St. Louis to Chicago. At the time, Lindbergh was chief pilot of Robertson Aircraft Corporation of Missouri, which was the second aviation company to hold a U.S. airmail contract. It was one of scores of companies that eventually consolidated to form the modern-day American Airlines. The consolidation began in 1929, when The Aviation Corporation was formed to acquire young aviation companies, including Robertson. In 1930, The Aviation Corporation's airline subsidiaries were incorporated into American Airways, Inc. In 1934, American Airways became American Airlines, Inc. Customer Service Plan American Airlines and American Eagle are in business to provide safe, dependable and friendly air transportation to our customers, along with numerous related services. We are dedicated to making every flight you take with us something special. Your safety, comfort and convenience are our most important concerns. In June 2007, American Airlines and other members of the Air Transport Association agreed to prepare and submit to the Department of Transportation (DOT) service plans addressing particular issues of consumer interest. Location of corporate office American Airlines, Inc 4333 Amon Carter Boulevard Fort Worth, TX 76155-2605 map Website: www.aa.com Phone: (817) 963-1234 Products or Services: Airtran Airlines, Sun Country Airlines, Emirates Airlines, Online Airline and Airlines. Stock price on last trade : Last Sale: $ 0.65 Change Net/%: 0.0251 4.02% Best Bid /Ask: N/A / N/A 1 Year Target: 3.3 Today's High/Low: $ 0.6696 / $ 0.5911 Share Volume: 24,833,329 50 Day Avg. Daily Volume: This is the average share volume for the past 50 trading days. This field allows you to compare today's trading to the average daily volume. 0 Previous Close: $ 0.6249 52 Week High /Low: $ 8.89 / $ 0.20 Shares Outstanding: "Shares Outstanding" means the total number of shares outstanding of the NASDAQ-listed security only. Issues not listed on NASDAQ,
Transcript: American Airlines Transportation The airline moves its headquarters from New York City to Fort Worth, Texas. Executive Vice President 1930 American carries its one-millionth passenger. 1979 1945 American began nonstop, coast-to-coast flights on the Douglas DC-7. With the company on the brink of bankruptcy, Gerard J. Arpey replaces Carty as CEO; labor unions approve cost-cutting contracts that let AMR avert bankruptcy. 1985 American Airways Inc. is incorporated Robert L. Crandall becomes chairman and CEO. Gary F. Kennedy 1937 Products Offered Flights to Europe begin under the American Overseas Airlines brand. AOA later merged with Pan Am. 1953 Isaella D. Goren Chairman Daniel P. Garton 1988 Delta Southwest United General Counsel & Chief Compliance Officer Chief Financial Officer Thomas W. Horton Industry Round Trip International Flights Food Travel Insurence Five Star Services Crandall retires and is succeeded by Donald J. Carty. 2003 Top Three Competitors
Transcript: American Airlines: Recovering from September 11th and the crash of AA587. The Airline Founded to be a symbol of our nation's freedom to explore. Four hub cities (DFW, JFK, MIA, ORD) and four focus cities (LGA, BOS, LAX, SJU). 613 airplanes with 64 more on order The attacks of 9/11 Two American Airlines airplanes were involved. AA77 - Boeing 757 Crashed into the Pentagon. AA11 - Boeing 767-300 Crashed into North Tower of the World Trade Center. American 587 November 12th, 2001 Airbus A300-600 with 260 passengers and crew. Faulty maintenance Pilot error The problem: Nobody wants to fly and nobody trusts American. The effects American looks especially bad. Load factor drops from 83% to 33% in less than 6 months. The solution More Room Throughout Coach The bloodbath An airline proud to bear the name American. American Airlines Today #2 in size, #1 in volume Chapter 11? No way! Founded in 1930 to support farming communities in Middle America. Questions?
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Transcript: AA.com Improvements for the User Experience Research Design Questions? Analysis Content Inventories How do we do this? So once we have the building blocks in place we can then move on to what we call "wireframing". Wireframing is an important step in creating multiple iterations of a product so as to determine to best layout and navigation scheme for your customers. Once that's complete we start production. Start with The People ISO 9241-210 defines user experience as "a person's perceptions and responses that result from the use or anticipated use of a product, system or service". Wireframes and Prototypes, Oh My! What comes out of it? Surveys Contextual Inquiries Focus Groups Usability Studies Actions speak louder than words. Though we have spoken with everyone involved, it is also important to watch them use the product. Different key pieces of information present themselves from watching the actions of others rather than just relying on their words alone. This will also help a site determine its main focus. The AA Assessment Information Analysis Let's think about Google and Apple for a moment. What makes them so popular? What gives them such an overwhelming loyalty from their customers that even when they do produce a product not quite up to par, people still flock to the stores to buy it? Brand perception of: Ease of use Focus on the customer They care about ME and therefore...I need to care about them. In order to understand the current state and what your customers want we must start with those who establish it, the people (and that means everyone). - Lacks a cohesive story or focus - Too much content - Outdated, unappealing aesthetics - Lacks consistency - Poor navigation What is User Experience? So what have we accomplished thus far? We have spoken with our users, i.e. stakholders and users. We have gathered their ideas and issues to give us focus. We have analyzed the content and the system's interactions to discover potential problems and determine what is required. So Now What? Now that you have gathered in depth information on your users it's time to analyze the site's current content and interactions to determine what stays, what transitions and what goes away based on your research. After researching your users you will then want to take some time to evaluate your content, especially in cases of content overload. Why should I care? Most importantly, goals and priorities centered around the content needs and the key tasks of your site. Interaction Analysis Weinschenk says: "Giving a gift triggers indebtedness, which increases the likelihood that others will reciprocate by giving you something." Crystal says “User Experience is EVERYTHING between you and your customer.” Card Sorts The Building Blocks
Transcript: Brisbane, Australia Brussels, Belgium Budapest, Hungary Buenos Aires, Argentina Buffalo, NY Cairns, Australia Calgary, Canada Cancun, Mexico Caracas, Venezuela Charleston, SC Charlotte, NC Chicago, IL Clearwater, FL Cleveland, OH Colorado Springs, CO Columbus, GA Columbus, OH Copenhagen, Denmark Curacao Dallas, TX CONCLUSION Hubs Focus cities Nashville, TN Nassau, Bahamas New Orleans, LA New York City, NY Nice, France Norfolk, VA Oklahoma City, OK Orlando, FL Ottawa, Canada Panama City, Panama Paris, France Pensacola, FL Philadelphia, PA Phoenix, AZ Pittsburgh, PA Portland, OR Prague, Czech Republic Puerto Vallarta, Mexico Punta Cana, Dominican Republic Quebec, Canada By number of aircraft LaGuardia Airport (New York) Is the first American Eagle aircraft to feature a first class cabin. Total Seats 65 The First Class cabin offers 24 seats in a 2-2 configuration Business Class, in a 2-2 seating configuration, features 16 Recaro next-generation angled lie-flat seats with drop-down armrests The Main Cabin offers 194 seats in a 2-5-2 configuration. Can be found primarily in Miami and San Juan. Total Seats 66 Daytona Beach, FL Delhi, India Denver, CO Destin/Ft. Walton Beach, FL Dublin, Ireland Durham, NC Edinburgh, United Kingdom El Paso, TX Florence, Italy Fort De France, Martinique Fort Worth, TX Frankfurt, Germany Freeport, Bahamas Fresno, CA Glasgow, Scotland Grenada Guadalajara, Mexico Guatemala City, Guatemala Gunnison, CO Hilo, HI Scheduled passenger-kilometer flown Boeing 777 Hilton Head, SC Hong Kong Honolulu, HI Houston, TX Indianapolis, IN Istanbul, Turkey Ixtapa, Mexico Jackson Hole, WY Jacksonville, FL Kahului, Maui, HI Kansas City, MO Lihue Kauai, HI Knoxville, TN Kona, HI La Romana, Dominican Republic Las Vegas, NV Liberia, Costa Rica Lima, Peru Lisbon, Portugal London, England Bombardier CRJ-700 The First Class, in a 2-2 seating configuration, features 16 seats Current number of destinations Boeing 767 The economy cabin features 144 seats ATR 72 - Super ATR BIBLIOGRAFÌA Los Angeles, CA Louisville, KY Madrid, Spain Manchester, England Marco Island, FL Mazatlan, Mexico Medellin, Columbia Melbourne, Australia Memphis, TN Mexico City, Mexico Miami, FL Milan, Italy Minneapolis, MN Montego Bay, Jamaica Monterey, CA Montreal, Canada Munich, Germany Napa, CA Naples, Italy Main Cabin offers 166 seats Tucson, AZ Tulsa, OK Turks & Caicos Islands Vail, CO Vancouver, Canada Venice, Italy Victoria, Canada Vienna, Austria Washington, DC West Palm Beach, FL Whistler, Canada Zurich, Switzerland Acapulco, Mexico Albuquerque, NM Amsterdam, Netherlands Anchorage, AK Anguilla Aruba Aspen, CO Athens, Greece Atlanta, GA Auckland, New Zealand Austin, TX Banff, Canada Bangkok, Thailand Barcelona, Spain Beijing, China Belize City, Belize Berlin, Germany Bermuda Bogota, Colombia Boston, MA http://www.aa.com/i18n/amrcorp/corporateInformation/facts/history.jsp http://economia.elpais.com/economia/2011/07/20/actualidad/1311147179_850215.html http://atwonline.com/search/penton_apachesolr_search/american%20airlines http://aa.innosked.com/(S(wfqpwx45fd5elp55ivqobeq0))/default.aspx?lang_id=EN Boeing 737-800 AAdvantage is the frequent flyer program of American Airlines. Launched May 1, 1981, it was the second such loyalty program in the world and remains the largest with more than 67 million members as of October 2011 American Airlines Boeing 777-223ER 47 Boeing 767-323ER 58 Boeing 767-223ER 15 Boeing 757-223 124 Boeing 737-823 163 MD -80 210 Total617 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 Savannah, GA Seattle, WA Seville, Spain Shanghai, China Singapore Springfield, MO St. Croix, U.S. Virgin Islands St. Kitts, Nevis St. Louis, MO St. Thomas, U.S. Virgin Islands Steamboat Springs, CO Sydney, Australia Tallahassee, FL Tampa, FL Tel Aviv, Israel Telluride, CO Tokyo, Japan Toronto, Canada Tortola, British Virgin Islands Trinidad Tobago The First Class cabin offers 10 seats in a 2-1-2 configuration Boeing 757 The Business Class cabin offers 30 seats in a 2-2-2 configuration Scheduled passengers carried Total Seats: 37 (ERJ135) 44 (ERJ140) 50 (ERJ145) 157 Boeing MD-80 The Economy Class cabin on the 767-300 offers 195 seats with the 767-200 offering 104 seats DISADVANTAGE Dallas/Fort Worth International Airport John F. Kennedy International Airport (New York) Los Angeles International Airport Miami International Airport O'Hare International Airport (Chicago) The Business Class cabin offers 37 seats in a 2-3-2 configuration. Total seats140 American Eagle ATR 72 36 Embraer 145 118 Embraer 140 59 Embraer
Transcript: http://www.fbm.com/files/Publication/e8933b64-5d21-41a8-ae85-122bc37c5ee2/Presentation/PublicationAttachment/c6d43f80-fab1-470d-a10e-150d848e0946/6162B4C2-9240-48E2-9282-37B5BB0206FB_document.pdf http://www.forbes.com/sites/richardfinger/2013/03/29/paid-to-fail-bankrupt-american-airlines-ceo-slated-for-20-million-severance/ http://247wallst.com/2013/01/09/the-10-most-hated-companies-in-america-2/3/ http://www.ft.com/intl/cms/s/0/28e20ac6-1aae-11e1-bc34-00144feabdc0.html#axzz2PGteX9QD http://www.cbsnews.com/8301-505123_162-57576661/judge-approves-american-airlines-us-airways-merger/ http://www.forbes.com/sites/andrewbender/2013/02/14/american-airlines-and-us-airways-merge-passengers-watch-out/ http://en.wikipedia.org/wiki/American_Airlines Solutions Founded in 1930 Founded 1930 Declared bankruptcy in 2011 10.4% of Market Share Ceo: Thomas W. Horton Current Fleet: 605 Tone at the Top Unfortunately American was recently named the U.S. carrier with the rudest employees. It was also ranked the worst carrier in America based on customer service, according to the ACSI. One customer service agent at the first class counter at LAX was recently quoted as saying ‘I’d like to help you, but American doesn’t treat me well, so why should I care about your problem?’” Rights and Equitable Treatment of Shareholders Interests of other stakeholders - employees, investors, creditors, customers, etc Roles and responsibilities of the board Integrity and ethical behavior Disclosure and transparency Executive pay structured on performance by industry standards - (citigroup) They need to go to church Consequences need to be in place for unethical CEO's American Airlines Leading by Example Corporate Governance Works Cited CEO to receive $20 million severance package in bankruptcy AA set to cut pension plans despite turning a profit 2003 CEO resigned when unions were asked to cut benefits but executives pensions were protected in a separate trust Background
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