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Importance of Airline Industry
• The airline industry impacts people on a professional and al
level
– $100 billion market (1% of U.S.
GDP)
– Employs over 20 million people
– Almost everyone has traveled
by ne
– Everyone ha periences to
share about their travels
Challenges in the Airline Industry
Competition
– Low-cost carriers Regulation
– International carriers – Airport access
– Security
Capital-intensive Industry – Environmental
– Big-bet decisions
– Every $ counts
Challenges Present Opportunities
MBAs are needed to tackle these issues
Finance ∙ Marketing ∙ Strategy ∙ Operations
• The future of the industry provides the following opportunities as
possible projects for MBAs:
– Using game theory to determine competitor pricing and capacity
adjustments
– Adjustin work capacity while maintaining competitiveness and
network effect benefits
– MA Opportunities
– Exploration of alliances to better position AA within the global industry
– ysis of features that drive customer value and rease revenue
opportunities
Why the Airline Industry?
Why American Airlines?
Lifestyle
American’s Competitive Advantages
• Our competitive advantages lude:
– Vas work
• Every day, American operates approxima y 3,700 flights to 250 cities in
50 countries carrying 250,000 passengers and transporting almost four
million pounds of cargo
– Strong corporate base and relative revenue strength
– cost reduction and productivity momentum
– Leading allianc work geared toward business customer
– World’s first and larges
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