American Airlines Group (AAG) is a holding company incorporated in Delaware. AAG wholly owns American Airlines Inc. (American), Piedmont Airlines Inc. (Piedmont), PSA Airlines (PSA), and Envoy Aviation Group Inc. (Envoy) (American Airlines 5). AAG in conjunction with other third party regional carriers operating as American Eagle run an average of 6,700 flights per day to almost 350 destinations in over 50 countries around the world (American Airline 5). AAG operates in the highly competitive airline industry. AAG competitors include: Alaska Airlines, Delta Airlines, Frontier Airlines, Allegiant Airline, Hawaiian Airlines, Southwest Airlines, JetBlue Airways, Virgin America, and United Airlines (American Airlines 8). In addition, AAG faces competition from charter airlines, ground and rail transportation (American Airlines 8).
AAG is permitted to set its own domestic fares without government intervention. However, some elements of international fare are subject to regulation by the government (American Airlines 12). AAG runs a loyalty program AAdvantage that awards a customer mileage credits every time the customer flies on any of their planes (American Airline 19). AAG has a wide ticket distribution network and passengers can buy their tickets from various distribution channels including the company website, third-party distribution channels such as Amedus and Sabre, conventional travel agents and online travel agents such as Expedia and Travelocity (American Airline 20). Sale of tickets tends to be higher during summer months due to the rise in demand for leisure travel thus AAG posts higher revenues in the fourth and first quarters of the year (American Airline 20). In addition, there are other factors such as terrorism, disease outbreak, natural disasters, and other factors contribute to the seasonality nature of the airline industry.
Works cited
American Airlines,. "American Airlines 10-K Report". (2015): 5-22. Print.
