American Airlines
| American Airlines | ||
|---|---|---|
| IATA AA |
ICAO AAL |
Callsign AMERICAN |
| Founded | 1930 (as American Airways) | |
| Hubs |
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| Focus cities | ||
| Frequent flyer program | AAdvantage | |
| Member lounge | Admirals Club | |
| Alliance |
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| Fleet size | 635 (+135 orders)[2] | |
| Destinations | 161 | |
| Parent company | AMR Corporation | |
| Company slogan | We know why you fly. | |
| Headquarters | Fort Worth, Texas | |
| Key people | Gerard Arpey (CEO) Tom Horton (CFO) |
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| Website: http://www.aa.com/ | ||
American Airlines, Inc. (AA) is a US-based airline[3], the world's largest in passenger miles transported[4] and passenger fleet size. It is second largest, behind FedEx Express, in aircraft operated and second behind Air France-KLM in operating revenues[5]. A subsidiary of the AMR Corporation, the airline is headquartered in Fort Worth, Texas, adjacent to the Dallas-Fort Worth International Airport. American operates scheduled flights throughout the United States, as well as flights to Canada, Latin America, the Caribbean, Europe, Japan, 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).
American Eagle Airlines is a regional service provider for American Airlines which it uses to fly to smaller cities.
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Overview
In May 2008, American served 260 cities (excluding codeshares with partner airlines) with 655 aircraft.[6] 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 has five hubs: Dallas/Fort Worth (DFW), Chicago (ORD), Miami (MIA), Luis Muñoz Marín International Airport (SJU) and Lambert St Louis International Airport (STL). Dallas/Fort Worth is the airline's largest hub, with AA operating 84 percent of flights at the airport and traveling to more destinations than from its other hubs. Los Angeles (LAX), New York City-Kennedy (JFK), Boston (BOS), serve as focus cities and international gateways. American operates maintenance bases at Tulsa (TUL), Kansas City (MCI), and Fort Worth Alliance (AFW).
American Eagle Airlines is a Fort Worth regional partner of American Airlines, wholly owned by AMR Corporation.
American Airlines is a founding member of the Oneworld airline alliance.
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
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 introduced the first transcontinental jet service using Boeing 707s on 25 January 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.[7]
Expansion in 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.
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 1990, American Airlines bought the assets of TWA's operations at London Heathrow for $445 million, giving American a hub there. Until the open skies agreement in April 2008, the US/British treaty Bermuda II the only U.S. airlines to serve Heathrow were American and United Airlines.
Lower fuel prices and a favorable business climate led to higher than average profits. 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, aquashing the strike.[8] Pilots settled for lower wages than their demands.
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 31 August 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.
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 15 October 1998 American Airlines became the first airline to offer electronic ticketing in all 44 countries it serves.
TWA merger, 9/11, into present
Robert Crandall left in 1998 and was replaced by Donald J. Carty, who negotiated the purchase of Trans World Airlines 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 most senior TWA captain, hired in 1963, was integrated at the same seniority level as an AA captain hired in 1985. 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. 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. St Louis hub was also downsized.
American has undergone additional cost-cutting, including rolling back its "More Room Throughout Coach" program (which eliminated several seats on certain aircraft), ending three-class service on many international flights, and standardizing its fleet at each hub (see below). However, the airline has 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. It had previously lobbied for preservation of the Wright Amendment, which regulates 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.[9]
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.[10] This caused significant inconvenience to passengers and financial problems for the airline. American is replacing all its MD-80 jets with Boeing 737s.
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. AA's regional airline will retire 35 to 40 regional jets as well as its Saab turboprop fleet.
On July 2, 2008, American announced furloughs of up to 950 flight attendants, via Texas' Worker Adjustment and Retraining Notification Act system.[11] This furlough is in addition to the furlough of 20 MD-80 aircraft[12]. American's hub at SJU will be truncated from 38 to 18 daily inbound flights, but the carrier will retain service in a diminished capacity.[13][14]
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 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.[15]
Slogans
- Current - "We know why you fly, we're American Airlines."
- 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."
- 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
- Further information: American Airlines destinations
American Airlines serves four continents. Its network is developed in the Americas. Hubs at Dallas/Fort Worth, Miami and New York (JFK) serve as gateways to the Americas, while American's Chicago hub has become the airline's primary gateway to Europe and Asia, and St. Louis is a regional hub.
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, which has since been discontinued. American also launched non-stop service from Chicago to Nagoya, but that too ended within a year. Also in 2005, American launched service from Chicago to Delhi.[16] This service has been profitable. In April 2006, American began service from Chicago to Shanghai, also profitably. However, in October 2006, American ceased its San Jose, CA to Tokyo/Narita service, leaving LAX as American's sole international gateway 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.
American has recently begun non-stop service from Miami to the Brazilian cities of Belo Horizonte, Recife, and Salvador.
Fleet
American Airlines' fleet has 664 planes.[17] Almost half is composed of McDonnell Douglas MD-82 and MD-83 series twinjets.
American was one of three (Continental Airlines and Delta Air Lines being the other two) to sign an exclusive agreement with Boeing in the late 1990s. When Boeing acquired McDonnell Douglas, the European Union forced Boeing to void the contracts. The carriers are widely believed to still have a gentlemen's agreement with Boeing.
In August 2007 the airline announced the intention of offering Wi-fi internet services on Boeing 767-200ER flights across the United States.[18] On August 20, 2008, American Airlines became the first to offer full inflight internet service.[19]
In October 2008, American ordered the Boeing 787-9 Dreamliner.[20]
Current
American Airlines had an average fleet age of 15.4 years in November 2008.[21]
| Aircraft | Total | Passengers (First/Business/Economy) |
Routes | IFE | Notes |
|---|---|---|---|---|---|
| Airbus A300-600R | 26 | 267 (16/251) | Domestic/Latin American short-medium haul | Overhead Monitors, Audio | All to exit service before August 31, 2009 |
| Boeing 737-800 | 77 (87 orders) |
142 (16/126) 148 (16/132) |
North American short-medium haul Most fly out of MIA, DFW, and LAX |
Overhead Monitors, Audio | Deliveries: 36 in 2009, 40 in 2010, 11 in 2013 [22] |
| Boeing 757-200 | 124 | 188 (22/166) 182 (16/166) |
Short-long haul | Overhead Monitors, Audio | Being fitted with winglets To be fitted with new interiors 18 to be modified to an international version |
| Boeing 767-200ER | 15 | 165 (9/30/126) 167 (9/30/128) |
Medium-long haul | Personal DVD Player offered in First Class; Overhead Monitors, Audio in Business and Economy Classes; to be fitted with PTVs with AVOD |
To be fitted with new interiors Aircell internet access available* One fitted with the Northrop Grumman Guardian |
| Boeing 767-300ER | 57 | 219 (30/189) 223 (30/193) 225 (30/195) |
Long haul | Personal DVD Player offered in Business Class, Overhead Monitors in Economy, Audio in Both Classes |
To be fitted with winglets[23] Fitted with New Business Class |
| Boeing 777-200ER | 47 (6 orders) |
247 (16/37/194) | Ultra long haul | AVOD, Audio | Fitted with Flagship Suites Fitted with New Business Class To be fitted with AVOD in First/Business Class To be fitted with NVOD in Economy class |
| Boeing 787-9 | (42 orders) (58 options) |
Ultra long haul | Entry into service: 2012[24] | ||
| McDonnell Douglas MD-82 | 201 | 136 (16/120) 140 (16/124) |
Short-medium haul | Largest operator of the MD-82 | |
| McDonnell Douglas MD-83 | 80 | 136 (16/120) 140 (16/124) |
Short-medium haul |
*Aircell Internet Broadband Access is being installed on all Boeing 767-200 aircraft.[25]
Retired fleet
| Aircraft | Year retired |
|---|---|
| BAC 1-11 | 1972 |
| BAe 146 | 1993 |
| Boeing 707 | 1981 |
| Boeing 717 | 2002 |
| Boeing 727-100 | 1993 |
| Boeing 727-200 | 2002 |
| Boeing 737-100 | 1993 |
| Boeing 737-200 | 1993 |
| Boeing 737-300 | 1993 |
| Boeing 747-100 | 1983 |
| Boeing 747-SP | 1994 |
| Fokker 100 | 2004 |
| McDonnell Douglas DC-10 | 2000 |
| McDonnell Douglas MD-11 | 2002 |
| McDonnell Douglas MD-90 | 2001 |
American Airlines has flown all of Boeing's "7-Series" jet airliners.
AAdvantage
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.
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.
History
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.
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.
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:
Airlines
Railways
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Airlines of the