American airlines recommendations case study

American Airlines is one of the major airlines in United States. Arguably, American Airlines is a brand that has persistently weathered deregulations, world wars, terrorism threats, as well as volatility of fuel prices, continually faces various other challenges in the airline industry. American Airlines encompasses perpetual unions concerns, competitive industry, weak balance sheet, as well as high cost of labor. Hence, the company should implement various recommendations in critical departments such as finance, management, human resource, as well as marketing.
Human resource department is very crucial for the success of every airline. American Airlines should improve on their human resource department by diversifying its employee nationality. In order to achieve competitive advantage, American Airlines need to diversify and operate in various parts of the world. The company needs to set a process in which employees training, motivation, recruitment, reward, and appraisal is observed. This will eliminate perpetual union crisis, as well boosting the morale of employees.
Perhaps, American Airline should adhere to management. For it to be successful, the Airline management style should be communicative, rather than control. The management personnel at the top post of American Airline should posses’ excellent communication and interpersonal skills. Generally, organizational and training development should be expanded; this will strengthen communication, cultural diversity, teamwork, as well as socialization.
The American Airlines has been under various financial problems. In order to realize the cause of financial issues, the Airline administration should carry out continues research and perpetual audits of various organizations in order to establish the gaps that make them not to meet their financial objective. Additionally, American Airlines should increase its number of planes to utilize economies of scale, and eliminate losses incurred through overbooking. Furthermore, global crisis reduced the level of demand; hence, the company should enact capacity reduction strategy, by reducing the seat capacity of mainline.
In order to remain competitive in the market, marketing is very important. The company is unable to compete on international level. For example, foreign carries are dominant parties in market and in offering quality services. The company should invest investing in earning customers loyalty, by using available global networks. American Airlines should partner with other companies in going global. In forming alliance with low cost carriers, they will reduce their flight prices and remain competitive, as well as making profits.