About EXECUTIVE AIR LINES, INC

American Airlines Group (AAG) is one of the largest airlines in the world. After merging with US Airways in late 2013, the combined airline company, together with its third-party regional carriers including Air Wisconsin, Chautauqua, ExpressJet, Mesa, Republic, and SkyWest operates nearly 6,700 daily flights to roughly 350 destinations in more than 50 countries. American and US Airways operate 930 mainline jets, and regional subsidiaries and third-party regional carriers operate nearly 600 regional jets. AAG extends its geographic reach through code-sharing arrangements and is part of the oneworld Alliance.

Operations

Following the truism that you have to spend money to make money, AMR ordered 460 single-aisle jets -- 200 Boeing 737s and 260 Airbus A320s for delivery between 2013 and 2022; it is the largest aircraft order in history. The new aircraft are designed for fuel efficiency and should save in operating costs. (During 2016, the company took delivery of 55 mainline aircraft and retired 71 older legacy mainline aircraft.)

Geographic Reach

AAG has primary hubs in Charlotte, North Carolina; Chicago, Dallas/Fort Worth; Los Angeles; Miami; New York; Philadelphia; Phoenix; and Washington, DC. It provides international service to Australia, Canada, Europe, the Middle East, New Zealand, Central and South America, and Asia.

Sales and Marketing

AAG sells its tickets through several distribution channels, including its website (www.aa.com), reservations centers, and third-party distribution channels. It spent $116 million on advertisements in 2016.

Financial Performance

AAG has posted two straight years of revenue declines, with revenues dipping 2% from almost $41 billion in 2015 to $40 billion in 2016. The slight dip in revenue for 2016 was attributed to a decline in mainline and regional passenger revenues that were driven by lower yields fueled by competitive capacity growth. The carrier also experienced macroeconomic softness outside of the US and foreign currency weakness.

AAG's net income nosedived by 65% from $7.6 billion in 2015 to $2.7 billion in 2016. The massive drop was mainly due to the absence of a special $3 billion non-cash tax benefit it incurred the previous year. In addition, cash flow increased from $6.2 billion in 2015 to $6.5 billion 2016 driven by additional payments received related to its new co-branded credit card agreements that became effective in the third quarter of 2016.

Strategy

AAG is adding new aircraft and new service into markets which cater to a wide breadth of industries - entertainment, banking and finance, energy, technology and manufacturing. This includes direct service to all of American's hubs with the most nonstop flights from LAX to New York (JFK); Dallas/Fort Worth; Miami; Philadelphia; Washington, DC (DCA); Phoenix; and Charlotte, North Carolina.

The company is also planning significant investments in modernizing its fleet and integrating the American and US Airways businesses. The company has set aside $18 billion in planned aggregate expenditures for aircraft purchase commitments and certain engines on a consolidated basis for years 2016-2020.

AAG in mid-2017 made a significant move to expand internationally with the announcement of a $200 million equity investment in China Southern Airlines. The two major carriers expect to begin codeshare and interline agreements that will grant customers access to additional destinations in China, as well as North and South America. AAG customers will be able to access nearly 40 destinations beyond Beijing and more than 30 destinations beyond Shanghai.

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EXECUTIVE AIR LINES, INC

Lmm Int Airport Central Sec Base Muiz
Carolina, PR 00983
Phone: 1 (787) 253-6401

Stats

  • Employer Type: Public
  • Pres: Pedro Fabregas
  • Employees: 1,509

Major Office Locations

  • Carolina, PR