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Strengths
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Global Network
-Largest scheduled passenger airlines in the world
-Provides schedule jet services to 160 destinations
-Worked with AmericanConnection to serve 250 cities
in 50 countries with more than 3.400 flights connecting
-900 aircrafts
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Strong Alliances and Marketing Tie-ups
-Strong alliance with various international airlines to serve
nearly 750 destinations
-Over 8,500 departures
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Robust Frequent Flyer Program
-AAdavantages for passenger loyalty
-Over 1,000 program participants
-67 million total members with 587 billions outstanding award miles
- Strong Fleet Operations
-900 aircrafts to complement their strong route network
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Weaknesses
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Legal Proceedings
-$24.2 million in fines imposed by the U.S. Government for
maintenance violations
-Canceled over 3,000 flights which affected 300,000 travelers
- High Indebtedness
-Long term debt of $8,4756 million
-Equity deficit of $3,945 million
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Threats
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Intense Competition Due to Industry Consolidation
-Intense price competition in domestic markets.
-Delta and Northwest Airlines merged
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Volatile Jet Fuel Prices
-Jet fuel costs are 29.3% of all operating expenses
-Price per barrel increased by 33.1% in 2011, which will cost
$34 billion more to the global industry
- Security Obligations
-All air carriers have to pay a fee to screen all passengers and property as
a security measure after 9/11
-$2.5 per enplanement security service fee imposed by ATSA
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Opportunities
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Growing Global Air Freight Market
-Global air markets are expected to recover.
-Will generated a 5.7% expansion
- Positive Outlook of the Passenger Airline Market
-Growth in Asian and North American Markets
-Profits are expected to reach $8.6 billions according
to IATA
-Asia-Pacific carriers are expected to deliver %4.6% of
the highest operating profit margins