Anju Lata answered on
Jul 21 2020
Running Head: Operational Analysis of American Airlines
Operational Analysis of American Airlines 23
QSO610: OPERATIONAL ANALYSIS OF AMERICAN AIRLINES
Southern New Hampshire University
Milestone 1: Organisation Selection
Name of the Organisation: American Airlines
Industry Sector: Transportation Industry
The American Airlines is one of the world’s biggest airlines services in United States with its head office in Fort Worth, Texas. Founded in 1926, the Airlines serve more than 356 destinations in nearly 57 countries. The cu
ent Chairman and CEO of American Airlines is Doug Parker. It has a vast network operating at domestic and international level with more than 6226 daily departures and 1536 fleet. The number of annual passengers boarding the American Airlines is 198.7 million which is second largest in America, after Oneworld Airlines (Oneworld, 2017).
The Organisation offers marketing services through AAdvantage Frequent Flyer Program and more than 82 Airport lounges by the names of Admiral Clubs and Flagship Lounges. The Organisation also shows active presence in Social media like Facebook, Twitter, Instagram, LinkedIn, and Youtube.
Employing more than 122,300 employees and fully owned by American Airlines Group, the Financial Analysis of the Organisation shows annual revenue of 40,180 million USD, and a net profit of 2676 million USD, for the financial year 2016-17 (Oneworld, 2017).
The Organisation reflects Corporate Responsibility through many big steps. For instance, Launching an industry leading maternity and Adoption Scheme, implementing mid-contract salary hikes for pilots and flight attendants. The Organisation collected the annual feedback with help of a survey of 60,000 employees on their views and opinion about the Company’s performance each year.
I selected this Organisation due to many influential factors associated with the operations of American Airlines. To achieve its long-term goals, the Organisation works at four strategic Objectives: Making the culture a competitive advantage; Developing great customer experience; Improving the financial strength in long run; and Thinking and leading forward. Implementing the practices of diversity and inclusion, the Company is committed to respect diverse experiences and perspectives.
The Organisation also follows Sustainability Practices to manage the impact of their operations on the environment. It buys renewable energy to reduce the harmful emissions. All the electricity purchased by the Organisation is produced through Renewable sources of energy. According to the survey of Environment Protection Agency (2017), the Organisation stands at the rank of 43 among top 500 users of green power in the world. The buildings of American Airlines are seeking approval by the US Green Building Council in terms of LEED (Leadership in Energy and Environmental Design) standards (American Airlines, 2017).
Milestone 2: Service Strategy & Design
The paper analyzes the central management of service operations in American Airlines. It explains the service strategy of the Company and identifies which elements are most important for the success of the Organisation. The milestone 2 gives an overview of the background, introduction, discussion and conclusion in terms of American Airlines.
Service Strategy: In 2008, the Company introduced mobile boarding passes which could be sent directly to the mobiles through the app or email services and did not require printing. The barcodes of the passes could be scanned at security checkpoints during boarding (Dallas News,2013). In 2013, the US Airways group and the AMR Corporation officially united to make the American Airlines Group. The merger resulted in the formation of the largest Airlines Services in America and the world. In 2015, American Airlines first time introduced the Boeing 787 Dream liner to its flights. Since its inception, the Company upgraded its logo five times with consistent improvements. The cu
ent logo is “AA”. The slogans of the Company also kept on changing with time, the cu
ent Slogan being “The world’s greatest fliers fly Americans”.
Presently the American Airline operates through ten hubs in the United States ca
ying more passengers than any other airlines. The ten hubs are Fort Worth, Charlotte Douglas, O’Hare, Philadelphia, Miami, Phoenix Sky Ha
or, Ronald Reagan Washington, Los Angeles, JF Kennedy, and LaGuardia Airports.
The corporate structure of the American Airlines has experienced and strong leadership with specific regulations for code of ethics, conflicts of interests, corporate opportunities and confidentiality of information. Complying with the rules, regulations, and laws, the Organisation encourages reporting of unethical and illegal behavior and promotes fair dealing with the customers. The Organisation has specific standards of business conduct for suppliers and the employees.
The Organisation owns the best employee culture in addition to efficient Corporate Social Responsibility. The business standards for employees encourage fair competition, commitment to the company, commitment to each other and to the safety, commitment to the business partners, and communities. The standards for the suppliers ensure the construction of respectful, ethical and safe workplaces. The suppliers are expected not to use forced labor, abuse, retaliation, and discrimination in any form. The suppliers are expected to safeguard the confidential information of the American Airlines. They are expected not to indulge in accepting improper payments in form of kickbacks and
ibes. The Airlines has specific regulations for the suppliers to comply with the environmental protection and conservation.
American Airlines ensures 100% satisfaction of its employees with the following services:
1. Making the fare affordable and lowest possible, to become the most profitable airlines.
2. Fulfilling the essential requirements of the passengers during delays, detours, and cancellations.
3. Feasible Refunds of tickets
4. AAdvantage Programs for frequently flying loyal customers
5. Offering specialized services for the passengers with extraordinary needs
6. Assisting the customers in Luggage Liability and Baggage Delivery
7. Providing safe and secure travel experience
Service Design: The American Airlines is the world’s largest Airlines with its largest fleet size of 955 fleets. Through its AAdvantage frequent fliers program, it offers loyalty services to its frequently flying customers, like they can redeem tickets, can avail discounts on rents on hotel and car rates, and other services provided by the partners. The Airlines offers various cabin and seating facilities in business and economy class to its customers like touch screen monitors, USB ports and power output slot (American Airlines, 2017).
In 2016, the employees of American Airlines voluntarily donated around 125000 working hours and 20 million miles to the local charitable trusts. The Organisation offers job opportunities in various posts like technical operations, Maintenance, Pilots, Customer Services, Flight Attendants, IT, Finance and Accounting, Sales and Marketing, and Colleges. The operations and services in American Airlines take place under the various divisions like Customer Operations, Waste Management, Strategic Infrastructure Management, System Operations, Planning and Engineering, Administration, Dispatch Operations, Security, and Research. The main departments in the Organisation are IT, sale, Operations and Customer Support (TMA Systems, 2018).
The American Airlines work on the principle of “Inclusion and Diversity” with an aim to cultivate a culture respecting the people of all the ages, race, gender, ethnicity and religions. In 2016, the US Business Leadership Network and the American Association of people with Disabilities awarded the American Airlines as a best workplace for diversity in employment and leadership. The Organisation has been awarded as “2017 Best Corporation for Inclusion”, “Best Employer Brand 2017”, and “100% Corporate Equality Index- 2018” in terms of employability by many other Organisations like Human Rights Commission, Latina Style Inc., US Veterans, and NBIC (American Airlines, 2017).
The Organisation delivers a strong commitment to its customers, employees, business partners and the stakeholders.
Milestone 3: Operational Analysis of American Airlines
A. Organization Context
The America Airlines was formed in 1926 with the coalition of more than 80 small airlines. However, the name American Airlines was given to the group in 1934. With a mission of “Going for Great”, the Organisation is...