Company History

American Airways was developed from a conglomeration of 82 small airlines through acquisitions in 1930 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. Like many early carriers, American earned its keep carrying US Mail.

Bankruptcy (November 2011 to present) On November 29, 2011 AMR Corporation filed for Chapter 11 bankruptcy protection. In July 2012, American announced capacity cuts due to the grounding of several aircraft associated with its bankruptcy and lack of pilots due to retirements. American's regional airline, American Eagle, will retire 35 to 40 regional jets as well as its Saab turboprop fleet. As of Summer 2012, American's unions are looking to merge with another airline. Reports are the possible merger partners AMR is considering are, US Airways, JetBlue, Alaska Airlines, Frontier and Virgin America. Indeed, in a July 12 court filing US Airways said it supported an American Airlines request to extend a period during which only American could file a bankruptcy reorganization plan ("exclusivity period"); in the filing US Airways disclosed that it was an American Airlines creditor and "prospective merger partner. On August 31, 2012, US Airways CEO Doug Parker announced that American Airlines and US Airways had signed a nondisclosure agreement, in which the airlines would discuss their financials and a possible merger. On September 18, 2012, the airline announced it has notified more than 11,000 workers of possible job loss as part of its bankruptcy reorganization. They also said it is cutting flights by one to two percent for the rest of September and October 2012. On October 25, 2012, the airline announced its plans to hire 2,500 pilots over two years. In a letter to employees, CEO Tom Horton said American Airlines will hire new pilots to staff new international and domestic routes. Company spokesman Bruce Hicks said about 1,500 of the new hires would replace retiring pilots, or jobs that open up due to attrition. American has about 7,500 active pilots today. On December 7, 2012, the American Pilots Association, representing pilots of American Airlines, said that members voted to ratify a tentative agreement between the company and the union. On January 17, 2013, Horton unveiled American Airlines new logo and brand image at the Dallas-Fort Worth International Airport. The new livery was introduced on the Boeing 737800. The idea of modernizing American's brand image and logo came to fruition soon after the airline placed the largest aircraft order in aviation history.

Company profile
Founder Commenced operations Hubs : 1930 (as American Airways) : 1934 :

Dallas/Fort Worth International Airport John F. Kennedy International Airport (New York) Los Angeles International Airport Miami International Airport O'Hare International Airport (Chicago) : LaGuardia Airport (New York) : AAdvantage : Admirals Club : Oneworld : 605 : 260 : We know why you fly. : AMR Corporation : Fort Worth, Texas, USA : Tom Horton, CEO : : : : : US$ 22.17 billion (2010) US$ 308 million (2010) US$ 471 million (2010) US$ 25.09 billion (2010) US$ 3.95 billion (2010)

Focus cities Frequent-flyer program Airport lounge Alliance Fleet size Destinations Company slogan Parent company Headquarters Key people Revenue Operating income Net income Total assets Total equity

Destinations
United States American Airlines destinations

American Airlines serves four continents, trailing Delta Air Lines and United Airlines, which both serve six. 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 the Los Angeles hub (LAX) is the primary gateway to Asia. Lambert-St. Louis International Airport served as a regional hub for several years. However, the airline's 2009 restructuring led to the airport being removed as a focus city on April 5, 2010. American serves the third-largest number of international destinations, after United Airlines and Delta Air Lines.
AA hubs listed by Flights (August 15, 2012)] Rank Airport Flights 1 Dallas/Fort Worth, Texas 764

2 3 4 5 6

Chicago-O'Hare, Illinois

501

Miami, Florida 294 Los Angeles, California 159 New York-LaGuardia, New York 102 New York-JFK, New York 86

United States American Airlines destinations

American is the only U.S. airline with scheduled flights to Bolivia, Paraguay and Uruguay.

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 (From Miami) and the Dominican Republic began on March 1, 2009. American will continue to offer free coach meals on flights to Europe, Haiti, Asia, and select South American destinations.

Figure 1 American Flagship First class

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. First Class and Business Class passengers receive alcoholic beverages for free. Non-alcoholic beverages are free for all classes. Alcoholic drinks are available for purchase on all domestic flights in Coach. Beer and wine are now free on long haul international flights to Europe and Asia and certain flights to South America.

Figure 2 American Coach class cabin

Personal Entertainment

Personal Movies and Music

You're in control of the remote, so to speak, so watch exactly what you want when you want. You'll find an impressive array of movies, television shows and music channels. In fact, we have up to 18 channels that span classical, jazz, alternative rock, independent bands, top 40, international pop and more. We like the sound of variety.

Inflight Wi-Fi
Stay on top of business or leisurely pursuits while flying with American. Wi-Fi is available on many of our planes, and we continue to add it to more of our fleet.

Power Onboard
Relax and rechargeliterally. You'll find power outlets at every First Class and Business Class seat, and within reach of every seat in the Main Cabin. Just look for the lightning bolt symbol overhead, designating powerport-equipped seats. Plus, enjoy USB jacks on select aircraft.

Competitors
AirTran Holdings (AAI): AirTran Holdings (Nasdaq:AAI) is one of Americas largest low-fare passenger airlines. The airline has managed to achieve low operating costs despite relying on a hub-and-spoke system, in which most of its flights originate and terminate at its hub in Atlanta, Georgia. Given AirTran's continued reliance on the hub and spoke system, airline management has cited other operational factors as cause for the airline having a cost structure that is among the lowest in the industry. Delta Air Lines Inc. (DAL): Delta Air Lines is the 2nd largest passenger airline in the world by available seat miles. In recent years, the company has faced financial difficulties due to price competition from discount airlines like JetBlue and Southwest. This has limited Delta's ability to raise prices to their natural supply/demand and cost reflective levels. As a result, Delta was forced into bankruptcy in September of 2005. Since exiting bankruptcy on April 30, 2007, the company has followed a revised operating strategy calling for a network shift towards more profitable international routings. United Continental Holdings (UAL) United Continental Holdings (UAL) is a holding company and its principals are United Airlines and Continental Airlines. The merger between United Airlines and continental took place on October 1st, 2010. Due to the merger, United Continental Holdings is the largest airline in the world. The combined entity operates approximately 5,800 flights a day to more than 375 U.S. domestic and international destinations.The company's hub and spoke system allows it to transport passengers between a large number of destinations with substantially more frequent service than if each route were served directly. JetBlue Airways (JBLU): JetBlue Airways is the 8th largest airline in the U.S. by revenue passenger miles. JetBlue differentiates itself from other airline travel companies with its low fares, made possible by low distribution and operating costs - largely due to the fact that it has the youngest fleet in all domestic airlines. JetBlue Airways specializes in cheap point-to-point flights with high levels of customer service to over 50 destinations in around 20 states, Puerto Rico, Mexico, and the Carribean. Southwest Airlines Company (LUV): Southwest Airlines is the largest domestic carrier by total passengers, carrying over 100 million passengers. Southwest thrives on maintaining low operating expenses, primarily through its extensive fuel hedging. Because of its low costs, Southwest was able to remain profitable for 37 consecutive years, a feat unmatched in commercial aviation history. US Airways Group (LCC) US Airways is a major domestic air carrier approximately operates 3,800 flights to 230 destinations across the U.S., Canada, the Caribbean, Latin America and Europe. The companys finances suffered considerably due to reduced air travel following September 11th, forcing the airline to declare bankruptcy in 2002. However, unlike other carriers that improved and emerged stronger following Chapter 11 protection, US Airways never fully recovered. The combination of high fuel costs and tough labor negotiations forced the company into a merger with America West in 2005. While the US Airways name was maintained for

brand purposes, the merger actually left America West executives and stockholders with more control over the new company.