Monday, April 16, 2007

Americanairlines flights

New service
At this time, AmericanAirlines has not announced any new service.
The AmericanAirlines Effect
The success and profitability of AmericanAirlines's business model led to a common trend being named after the company: The AmericanAirlines Effect. Since AmericanAirlines's original mission in Texas was to make it less expensive than driving between two points (in the early 1970s, during the first major energy cost crisis in the U.S.), they developed a template for entering markets at rates that allowed the airline to be profitable, yet only on the basis of lean operations and high aircraft utilization. The key concept to the AmericanAirlines Effect is that when a low fare carrier (or any aggressive and innovative company) enters a market, the market itself changes, and usually grows dramatically. For example, when fares drop by 50% from their historical averages, the number of new customers in that market may not just double, but actually quadruple, or more.
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AmericanAirlines has been a major inspiration to other low-cost airlines, and its business model has been repeated many times around the world. Europe's easyJet and Ryanair are two of the best known airlines to follow AmericanAirlines's business strategy in that continent (though easyJet operates two different aircraft models today), while Canada's WestJet is using AmericanAirlines's modus operandi in that country. New Zealand's Freedom Air , Malaysia's AirAsia which is the first and biggest LCC in Asia and Thailand's Nok Air are other examples of airlines that are based on AmericanAirlines's system.