American Airlines, Inc.: Revenue Management

Executive Summary:

American Airlines, Inc. (AA) is a major airline of the United States. American Airlines Inc. details a strong revenue management strategy on a few important platforms, but fails to address improvements in key areas. With the current cash constraints and the risk of change disturbing their core business and values, it is my recommendation that they re-examine their Capacity Management strategy to better address challenges they have been experience will filling up flights and route, as well as overbooking and being over capacity.

Revising their Capacity Management strategy will also address their employee management challenges, and help focus on their human resource allocation, giving more opportunities to long term employees rather than hiring season help. This can improve employee morale, and ultimately save the company money by being more productive and efficient with their resources.

After thorough consideration of all the options, the benefits of more effectively managing Capacity Management would fit seamlessly with Americans Airlines current revenue Management strategy. This investment now will enable the company to stay ahead of their competitor and help reduce their total costs.

A multi-point strategy is still the approach American Airlines needs to take into the future, and adding this improved Capacity Management system will help continue American Airlines’ strong bottom line.

American Airlines could improve its annual results by simply re-examining their Capacity Management strategy.

Table of Contents

Executive Summary………………………………………..Page 2

Issue Identification…………………………………………Page 4

Root Cause Analysis………………………………………Page 4

Alternative and Options……………………………………Page 7

Recommendations…………………………………………Page 8

Implementation……………………………………………..Page 9

Monitor and Control………………………………………..Page 9

Exhibits……………………………………………………...Page 10