Introduction
The American Eagle airline is a seasoned air carrier that has offered executive flight services for three decades. Based in Texas, the American Eagle Airline boasts of massive flights and research indicates that it is a regional leader in the realms of flight business. Serving countries like Canada, Caribbean and Mexico, the American Eagle Aviation is able to handle close to 2000 flights a day (Goederking, 2010). This service reaches more than 150 cities that the American Eagle Airlines serves. Reports from the financial sector have indicated that most airlines have sought from protection government and other loan facilities due to the tough times in the business world (Matthias, 2010). Thomas (2007) reports that despite these conditions, the American Eagle has not only increased revenue from its operations but also maintained the levels of staff. In line with this superb performance it is vital that we establish from the economic reports together with the statistical data how American Eagle Airlines are able to survive the hard waves grounding other airlines.
Inter-airline alliances
Using several strategies the American Eagle Airline has managed to standout top of the competitive forces that have kept most airlines on their toes (Philipp, 2010). In order to cash in from numerous markets that the airline serves, American Eagle has provided connections at US major markets. Thomas (2007) cites that this has enabled key agreements with other carriers thereby resulting in a full capacity operation during most times of the year. Among the major markets that the American Eagle target are, Dallas/ Fort Worth, Miami Chicago, Los Angeles and New York. Where the feed mechanism and strategy cannot be economical, the American Eagle Airline makes use of direct route flights. This space of direct routes is a strictly tight space but American Eagle has stayed at the top of the charts.
Internal air programs
According to Jack (2009), American Eagle has also banked on the international air travels market with the aim of garnering as much competitive muscle as well as trust from the clientele base. The continents that American Eagle has targeted include Asia, Europe, Latin America Caribbean together with Canada. American Eagle has developed a competitive strategy that has enabled it to raise about 40% of the total revenue from overseas flights (Philipp, 2010). International partnerships with other leading airlines like the British airways have led to the strengthening of the American Eagle Airlines. For instance, American Eagle Airline obtained an antitrust Immunity when operating alongside the British Airlines.
Effect of fairs and rates of travel
Fair setting together with travel plans have formed a major advantage block held by the American Eagle Airline (Matthias, 2010). Introduction of timely discounts on travel and offering lower cost flights. Together with offering the American Eagle Airlines has focused on lowering the costs of operations hence breaking even in terms of revenue. The strategy that American Eagle Airline has put in place includes the radical adjustments in line with the prevailing supply/Demand logistics.
American Eagle and Aviation Regulation
James (2009) reports that the American Eagle Airlines have strictly sought to implement and enhance the regulations put in place by the Aviation authorities. An advantage that comes with this is the waiver that the Airline Deregulation Act that was incepted in 1978 brought to the players in this industry. Saving a lot from this waiver, the American Eagle Aviation has initiated in house safety regulations and practices that have maintained the integrity of their service.
The Labor force factor
Though the American Eagle Airline is affected by the intensive effect of the labor force, Jack Plunkett (2009) suggests that measures that American eagle Airline has put in place have enabled it to minimize the expense effect of salaries and wages. In order to achieve this vital balance the American Eagle Airlines has put in place strong bargaining teams that have ensured that the labor unions are kept at controllable levels. The American Eagle Airlines has also fought hard to ensure that cordial relations exist between its operations and the bodies representing its employees and workforce. For example, the negotiation of terms of relations between the Railways Labor Act enforcers and the American Eagle Airline are protected so that undesirable situations do not result. This state of operations has enabled the American Eagle Airlines to maintain a clean record in the public relations sector.
Fuel
According to Jack Plunkett (2009), fuel and jet oil are vital inputs to any airline’s operations. The cost and availability of jet fuel forms the bulk of the ongoing expenditure recorded by the American Eagle Airline. For example, starting from the year 2008 to 2010 the American Eagle airlines spent close to $ 21000 million on jet. Plunkett (2009) suggests that a strategy to alleviate the massive effect that oil and fuel has on airline operations is the use of hedging. The American Eagle airline has researched and implemented a fuel hedging program that securely dampens the fuel cost effects together with the effect of shortages. The American Eagle Airlines have experienced massive savings starting from 2008 towards 2011. In the yearly reports averagely $500 million has been saved annually as a result of the hedging strategies.
Loyalty programs
According to Thomas (2007), passenger loyalty plays a key role in the growth of the airline’s operations. American Eagle Airline has established a loyalty enhancement program that offers customers integrity and continued support. The Advantage program has quickly picked up and enrolled a massive 67 million members who are decided to use the American Eagle airline for life (Goerdeking, 2010).
In conclusion, it is evident that the American Eagle airline is a strong player in the airline industry. With the strategies and the experience displayed in the industry, the American Eagle Airline is bound to maintain its operations at the top of the charts. It is advisable that other airlines emulate a few strategies that would enable them gain favorable positions in the airline market.
References
Philipp Goederking (2010). Networks in Aviation: Strategies and structures. Springer.
Matthias Nuoffer (2010). Japanese Airlines Bankruptcy: a strategic Analysis. GRIN publishing.
Thomas C. Lawton (2007). Strategic management in Aviation: Critical Essays. Ashgate Publishing
Jack W. Plunkett (2009). Transportation, Supply chain and Logistics Industry. Plunkett Publishing.
James Oberstar (2009). Critical lapses in Federal Aviation Administration safety oversight of Airlines. DIANE Publishing.
