MEMO

Memo

This memo is written to identify or highlight the issues of American Airline. They are suffering from a bad time as they are facing a lot of problems. An American airline was a good airline in its starting days. This airline was the major U.S. airline that has owned by AMR corporation. Their headquarters is present in Texas. They were serving to both domestic and international customers. They got scheduled flights throughout Caribbean, Europe, North America, and South America. The international airport of Dallas is the largest airline port with American Airlines. It is a very good airline in its early days because they were the first ones who introduced some important facts.

They were the first ones who introduce VIP lounge.

First airline of USA who introduce Arrivals Lounge

First in introducing a reward system.

American airlines are suffering from some serious issues that ruined its relationship with bondholders, customers, shareholders, pilots, suppliers and employees. In November, 2011 American airlines lose their relationship with stakeholders. At that time, American airlines were able to cut the financial restrictions to the manufacturer of airplanes and the holders of debt (McIntyre & Sauter 2013). This will harm the financial status. The airline company has done an argument with their pilots for the compensations over a month. The image of American airlines is decreasing in front of customers. They showed a bad rank in carriers of America based on the service of customers (McIntyre & Sauter 2013). Some of the major problems that they are facing is defined below:

Flight delays

No proper seats

Bankruptcy

Lack of shareholders interest

Labor issues

Losing frequent fliers

Flight delays

This was the basic issue that American airlines faced. There were a lot of flights that got delayed or cancelled. Airlines are suffering from a lot of operational problems that lead to such big issues. According to FlightStats.com, American airlines had experienced 39 cancellations and 241 delays nationwide in just a single day (Karp, 2008). Moreover in some couple of time, collectively they have faced 10,558 delays and 847 cancellations of flights. There was a person Mr. Corp., who belongs to this airline, blamed the pilots for these delays. Pilots have registered some maintenance reports that hold the flights for addressing the issues before takeoff (Karp, 2008). Andrew Sobotka got his flight delayed for five hours on going back to Chicago from Las Vegas. He was there with his hockey teammates who were celebrating a birthday of their captain. Because, of this delay a lot they were unable to reach home until 4 am (Karp & Hirst, 2012).

No proper seats

This was also an issue of American airlines that their planes have loose seats for customers. Their Boeing 757 got a lot of loose seats. Because of this issue, around 757 flights got delayed or cancelled(Karp, 2008). There were a lot of issues created between pilots and airlines. As the airline was already in a bad condition, they start having some other problems. Customers are afraid of travelling from American airlines as they do not have a proper place to ...