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About America West Airlines, Inc.

American Airlines Group (AAG) is the largest airline in the US and one of the largest in the world. The company's mainline carriers provide scheduled air transportation along with its group of regional subsidiaries and third-party regional carriers operating as American Eagle. It also offers freight and mail services through its cargo division. In all, American operates an average of 6,800 flights daily to more than 365 destinations in more than 60 countries. It operates more than 940 mainline aircraft and approximately 605 regional aircraft. American Airlines Group is also a founding member of oneworld alliance, where member carriers share airport lounge facilities and offer interconnected loyalty programs. About quarter of passenger sales of American Airlines Group is generated from the US.

Operations

American Airlines Group are managed as a single business unit that provides scheduled air transportation for passenger and cargo through its mainline carrier network as well as through regional carriers. Its passenger segment accounts for more than 90% of total sales and operates more than 940 aircraft. Regional operations provide services under the "American Eagle" brand. American Eagle carriers include wholly-owned subsidiaries Envoy, PSA, and Piedmont. Third-party regional carriers including Republic, Mesa, Compass, and SkyWest.

The company's Cargo segment (accounts for more than 1% of total sales) also provides a wide range of freight and mail services with facilities and interline connections available across the globe.

Other operating revenue associated with American Airlines Group airport clubs and loyalty program generate more than 5% of sales.

Geographic Reach

Headquartered in Fort Worth, TX, American Airlines Group flies to more than 365 destinations in more than 60 countries. Its hubs are located in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington DC, with international services to Canada, Central and South America, Asia, Europe, Australia, and New Zealand. About 75% of sales on passenger sales are generated in the US. More than 10% are generated in Latin America, exceeding 10% are generated in Atlantic and about 5% in the Pacific.

Sales and Marketing

American Airlines Group sells its tickets through several distribution channels including its website (www.aa.com), reservations centers, and third-party distribution channels. Its loyalty program offers rewards to travelers for their continued patronage. Advertising expense was $129 million, $128 million and $135 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Financial Performance

Except in 2016, American Airline's revenue has been soaring higher every year. 2019 revenue is 12% higher than 2015.

In 2019, the company's revenue rose 3% ($1.2 billion) from $44.5 billion to $45.8 billion. This was primarily due to the $1.3 billion increase in passenger segment which was offset by the cargo segment.

Net income rose from $1.4 billion in 2018 to $1.78 billion in 2019.

Cash at the end of fiscal 2019 was $290 million, an increase of $4 million from the prior year. Cash from operations contributed $3.8 billion to the coffers, while investing activities used $2.2 billion, mainly for capital expenditures. Financing activities used another $1.6 billion for dividends to stockholders and the company's stock repurchase program.

Strategy

An important part of our strategy to expand our network has been to expand our commercial relationships with other airlines, such as by entering into global alliance, joint business and codeshare relationships, and, in one recent instance involving China Southern Airlines Company Limited (China Southern Airlines), by making a significant equity investment in another airline in connection with initiating such a commercial relationship. We may explore similar non-controlling investments in, and joint ventures and strategic alliances with, other carriers as part of our global business strategy.

Company Background

In 2011, American Airlines' parent company, AMR Corporation, filed for bankruptcy. It emerged from Chapter 11 in late 2013 and at the same time merged with rival US Airways in a mega deal worth $11 billion. The milestone transaction created the world's largest airline. The combined entity formed the American Airlines Group and is led by former US Airways CEO Doug Parker.

America West Airlines, Inc.

4000 E Sky Harbor Blvd
Phoenix, AZ 85034-3802
Phone: 1 (480) 693-0800

Firm Stats

Employer Type: Privately Owned
Vice President: Kara Gin
Vice President corp Real Estate: Paul Lambert
Information Specialist: Steve Peete
Employees (This Location): 250
Employees (All Locations): 12,400

Major Office Locations

Phoenix, AZ

Other Locations

Phoenix, AZ
San Diego, CA
Santa Ana, CA
Des Moines, IA
Indianapolis, IN
Omaha, NE
Albuquerque, NM
San Antonio, TX