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American Airlines

Company

Transport
Since 1930
USA


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130000 employees in 2019
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For July, 2013 the owner of American Airlines is the AMR corporation which in November, 2011 began insolvency proceeding.

Assets

After consolidation with US Airways new American Airlines becomes the largest airline in the world and executes over 6.7 thousand. flights in day in 336 directions in 56 countries of the world. The company is included into Oneworld airline alliance (for 2017).

History

2019: As technologies helped American Airlines to become the world's largest airline

In the middle of May, 2019 the managing director of American Airlines personnel department Mark Mitchell told at the SAP Sapphire conference as technologies helped American Airlines to become the world's largest airline.

In 2013 when the American Airlines company integrated with US Airways, large-scale digital transformation of the American airline began. According to Mitchell, after merge the organization shifted focus from service of separate transactions and clients to creation of a pleasant and convenient working environment necessary both for buyers, and for employees.

Digital transformation helped American Airlines to become the world\'s largest airline
Digital transformation helped American Airlines to become the world's largest airline

After merge American Airlines became airline with the most large number of employees in the world – in it about 130,000 people work (by May, 2019). Work of personnel department was in that all employees could run without problems business with the company therefore American Airlines tried to create the special working atmosphere. For this purpose personnel department focused on conversion of digital technologies and business and addressed cloud services.

The airline had to rebuild the existing business model, to train employees in use of new technologies and to provide technical support that all possibilities of new products for business development were constantly available. According to Mitchell, the personnel had to change the settled thinking upon transition to a cloud operational model.

American Airlines had a team of the trained system administrators having skills which were traditionally used in the IT sphere, but when using a cloud service were required for maintenance of operability of personnel department. Transition to cloud services changed duties of system administrators, however in the company still there are over 150 interfaces which need to be supported, operated and updated eventually.[1]

2017: An error in the IT system which caused the shortage of pilots in 15 thousand runs

At the beginning of December, 2017 American Airlines announced solution when because of failure in the IT system the airline did not have pilots for Christmas runs. Awards for work during a holiday will be paid to personnel.

At the end of November, 2017 there were malfunctions in the program  making lists of pilots who receive a holiday. As a result of incorrect work of software too many crew members had an opportunity to go on leave in the second half of December — the period when the number of flights before Christmas holidays sharply increases.

Crew of the American Airlines airplane
Crew of the American Airlines airplane

By estimates of labor union of pilots of Allied Pilots Association, during the period from December 17 to December 31 crews of more than 15 thousand runs will be incomplete if the airline does not find a way out of current situation. Runs which it can concern go from Boston, Washington, New York, Miami, Chicago, Philadelphia and some other the cities.

American Airlines assured that failure in the IT system will result in absence of pilots on "several hundred runs", however in labor union pointed to much more serious effects. American Airlines found a way out.

«
We have pilots in a reserve to perform flights in December, and we will pay those pilots who will agree to perform the flights which were left without crews, at 150% of their hour rate — so much we can pay under the terms of the labor contract — the representative of American Airlines Matt Miller reported.
»

The labor union of pilots filed a complaint, having stated that insurance payment does not become covered by his contract and that the airline cannot guarantee the promised payment. As a result the agreement nevertheless was reached.

«
We are glad to report that we joint efforts of American Airlines and Allied Pilots Association removed this concern, having convinced that our flights will be performed according to the diagram, said in the statement of airline.[2]
»

2013: Consolidation with US Airways

The first steps for consolidation with American Airlines the management of US Airways were taken in April, 2012, having sent the corresponding inquiry to the U.S. Securities and Exchange Commission (SEC). In September, 2012 the parties announced that they began negotiations on merge.

In July, 2013 Boards of Directors of the American companies American Airlines and US Airways approved join condition as a result of which the world's largest airline is created.

The market value of the united company is estimated approximately at 11 billion dollars. Airplanes of carrier will fly under a brand of American Airlines. The new company will still be included into Oneworld airline alliance which founder was AA. New American Airlines will execute over 6.7 thousand flights a day in 336 directions in 56 countries of the world.

The chairman of the board of directors of US Airways Doug Parker will become the chief executive of the joint carrier. The president and the chief executive of American Airlines Thomas Horton will head Board of Directors of new structure (prior to the first general shareholder meeting), and then will remain the representative of carrier in Oneworld where Horton is also a chairman of the board.

The post of the chairman of the board of directors of the updated American Airlines after Horton will also pass to Parker. In total council will include 12 people: three representatives of American Airlines (including Horton), four representatives of US Airways (including Parker) and also five representatives from creditors of AMR.

The transaction on merge of American Airlines and US Airways should be approved by court, antimonopoly and other regulating authorities of the USA. If the transaction takes place, then new carrier, as expected will select the status of the world's largest at United Continental Holdings company. The last was created in 2010 by merge of the American United Airlines and Continental Airlines.

Links

Russian website of American Airlines

Notes