American Airline under Arpey's Leadership



American Airline under Arpey's Leadership

Introduction

The most of the largest businesses of US have found their ways at the time of international financial depression and distress through mergers, bankruptcy declaration and declining the capacities. The strategy of AMR was not up to the mark and they lose passengers. The struggle with older outdated jets and delayed had moved the passengers to Delta Airlines and United Airlines. The strategies have created a far distance between AA and its peers. The high costs have forced them to cut unprofitable routes, which deteriorated the revenue problem eventually bankruptcy was unavoidable.

Strategies

Following are few corporate and business level strategies of American Airline (AA). The company has the strategies focused on cost management and retaining of the customers. It includes:

AAdvantage which is a Frequent Flier Program. It is one of the largest loyalty programs in the world. Awards include redemption on miles of flight, vacation packages, car rentals, hotel stays and other retail products.

Oneworld Alliance links the airlines of the world through code sharing and ensures the rewards to the members. British Airways, Finn air, Japan Airlines are some of the examples to mention.

Information Technology System was developed in 1959 in collaboration with IBM named as Semi Automated Business Research Environment (SABRE). In 1998 the SABRE made its initial public offerings of 18% of the stock. In 2009 a refreshed technology was introduced for the customers called as Your Assistance Delivered Anywhere (YADA) to replace the short comings of the previous one.

Philanthropic Acts successfully undertaken several charitable programs through donations, investing in research and education, treatments of breast cancer and boosting the morale of the military through providing recreational activities.

The past business strategies at the time of need of being profitable were to remain staying at loss made the eminent position ...