American Airlines: is Improvement Enough?

27 Jul

Most companies would not think that much good could come out of bankruptcy. Yet American Airlines seems to using it to find the flaws in the system that they had. They are even starting to see a turnaround in income and said that the second quarter showed definite signs of improvements.

The airline was able to improve their luggage handling and lost baggage claims by a record setting 40%. And they have also improved their late landing and canceled flights records as well. But it does not appear to be enough as they still fall below the national average according to government ratings.

While all these signs for improvement are promising there is still the fact that they are having trouble competing with Delta and United. Both of these companies are servicing all routes. American is having difficulty offering sufficient routing to the East and West coasts, and that is a problem to most clients.

US Airways would like to step in and buy the company thus fixing the networking route problems by merging the two companies together, but American’s CEO still feels there are other options. He would like to be able to sell seats on other airlines such as JetBlue and be able to share the profits. JetBlue does not like the idea and wishes to stay independent

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