Introduction
American Airlines Company (AA) is one of the world’s leading airlines. Like all other companies, its operations face various challenges and obstacles. One of these challenges is the current inflationary economic situation, which may affect the company’s business strategy.
Strategy Adaptation
To cope with these challenges, AA has developed a strategy that enables it to operate successfully in an inflationary environment. This strategy involves maintaining ticket prices at a stable level, reducing costs, and increasing efficiency. The company also plans to invest in developing new technologies to reduce costs and improve passenger service (Grantham, 2022).
Due to the COVID-19 pandemic, AA was forced to change its business. The company quickly adapted to the new conditions and took several measures to minimize the negative consequences. It reduced the number of flights and increased the number of flights on smaller planes. In addition, AA reduced its costs by, for example, discontinuing certain services and products.
Outcomes
Thanks to these measures, AA achieved significant results during the initial wave of the COVID-19 pandemic. The company successfully reduced its costs while maintaining its financial stability. It also improved service quality and increased passenger and personnel safety (Samimi, 2020). However, the company still faces challenges stemming from the COVID-19 pandemic, which continue to hurt the aviation industry. In light of this, AA continues to take additional measures to maintain its operations.
Recommended Actions
One such measure is actively promoting vaccination among its employees and collaborating with government and medical organizations to ensure passenger safety and health. Additionally, the company plans to increase flights to more popular destinations and expand its service area (Prince & Baye, 2021). AA also continues to invest in new technologies that can enhance passenger safety and comfort and reduce the company’s costs. This may include contactless flight check-in technologies, enhancements to aircraft ventilation and air filtration systems, and the use of machine learning algorithms to optimize flight schedules and resource allocation.
Conclusion
In conclusion, American Airlines Company continues to refine its business strategy and adapt to changing market conditions. Thanks to its readiness for change, investment in new technologies, and safety promotion, the company can maintain its position as one of the world’s leading airlines and continue to provide high-quality service to its passengers.
References
Grantham, A. (2022). Sustainable business strategy: Analysis, choice and implementation. De Gruyter.
Prince, J., & Baye, M. R. (2021). Managerial economics and business strategy. McGraw-Hill Education.
Samimi, R. (2020). Unified theory of business strategy. Sentinel9 Pty Ltd.