AIRLINES

Comparison of three Airline Companies

Comparison of three Airline Companies

Introduction

This paper discusses the three prominent airlines, namely American airlines, Singapore Airlines and Turkish Airline. The operations, management, history and several other perspectives of these airlines are discussed in detail. Further, the main focus of the paper is to apply the Capital Budgeting Techniques on the past 5 years cash flows of the company from 2006-2010.

American Airlines

American Airlines, Inc. better known as American or AA is an airline based in the United States. It is the largest airline in the world in mileage, the fifth in numbers of aircraft operated and the largest in terms of total revenue operations. In 2010 carried 105,163,576 passengers, the third largest worldwide after Delta Air Lines and United Airlines. The airline is based in Fort Worth, Texas, a city adjacent to Dallas and headquarters from Dallas-Fort Worth, one of the largest worldwide. It operates scheduled flights throughout the United States as well as flights to Canada, Latin America, Europe, Caribbean, Japan, China and India. President and CEO of the company is Tom Horton, the founding member of the global alliance one world. In 2010 was ranked number 120 on the list Fortune 500. It is a subsidiary of AMR Corporation (Sievers, H., & Whittle, J. A., 2009).

History American Airways was formed as a conglomeration of 82 small airlines through reorganizations and acquisitions. On 25 January 1930, the American Airlines merged into a single company based in New York, with routes from New York, Boston and Chicago to Dallas, and from the latter to Los Angeles. In 1934, the company was bought by Errett Lobban Cord, who changed his name to "American Air Lines" and hired Cyrus Rowlett (CR) Smith for administration, a position he held until 1968 and later in 1973 by a few months. Smith worked with the Douglas Aircraft Company to develop the Douglas DC-3, introduced American aircraft to its fleet in 1936. American Airlines worked closely with Mayor Fiorello LaGuardia to build the first airport in the city of New York, and as a result of this was the first airline in the world to own an exclusive lounge for their passengers (Lounge, in English) at LaGuardia Airport on Long Island. This room was renamed the Admirals Club (Admirals Club, in Spanish). Membership is obtained by invitation only, until a discrimination lawsuit changed the rules on income paid, establishing the model for other airline lounges worldwide. After the Second World War, American Airlines American Export Airlines acquired (AOA), changing its name to American Overseas Airlines for its services to Europe, AOA was sold to Pan Am in 1950. AA created another subsidiary, American Airlines de Mexico SA, to fly to Mexico, building a number of airports in the country. Until 1961, when Capital merged with United, American Airlines was the largest airline of the United States and second worldwide, after Aeroflot. On January 25, 1959, American introduced its first nonstop transcontinental service from the West Coast to the Atlantic Coast operating Boeing 707 ...