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| American Airlines |
American Airlines, Inc. (AA) is the world's fourth-largest airline in passenger miles transported, passenger fleet size, and operating revenues. American Airlines is a subsidiary of the AMR Corporation and is headquartered in Fort Worth, Texas adjacent to its largest hub at Dallas/Fort Worth International Airport. American operates an extensive international and domestic network, with scheduled flights throughout North America, Latin and South America, Europe, Asia/Pacific and the Caribbean.
American Airlines was listed at #120 on the Fortune 500 list of companies in 2010 and is a founding member of the Oneworld airline alliance.
Formation
American Airways was developed from a conglomeration of 82 small airlines through acquisitions and reorganizations: initially, American Airways was a common brand by a number of independent carriers. These included Southern Air Transport in Texas, Southern Air Fast Express (SAFE) in the western US, Universal Aviation in the Midwest (which operated a transcontinental air/rail route in 1929), Thompson Aeronautical Services (which operated a Detroit-Cleveland route beginning in 1929) and Colonial Air Transport in the Northeast.
On January 25, 1930, American Airways was incorporated as a single company, based in New York, with routes from Boston, New York and Chicago to Dallas, and from Dallas to Los Angeles. The airline operated wood and fabric-covered Fokker Trimotors and all-metal Ford Trimotors. In 1934 American began flying Curtiss Condor biplanes with sleeping berths.
American Airlines before World War II
In 1934, American Airways Company was acquired by E.L. Cord, who renamed it "American Air Lines". Cord hired Texas businessman C.R. (Cyrus Rowlett) Smith to run the company.
Smith worked with Donald Douglas to develop the DC-3, which American Airlines started flying in 1936. With the DC-3, American began calling its aircraft "Flagships" and establishing the Admirals Club for valued passengers. The DC-3s had a four-star "admiral's pennant" outside the cockpit window while the aircraft was parked, one of the most well-known images of the airline at the time.
American Airlines was first to cooperate with Fiorello LaGuardia to build an airport in New York City, and partly as a result became owner of the world's first airline lounge at the new LaGuardia Airport (LGA), which became known as the Admirals Club. Membership was initially by invitation only, but a discrimination suit decades later changed the club into a paid club, creating the model for other airline lounges.
Postwar developments
After World War II, American acquired American Export Airlines, renaming it as American Overseas Airlines, to serve Europe; AOA was sold to Pan Am in 1950. AA launched another subsidiary, Líneas Aéreas Americanas de Mexico S.A., to fly to Mexico and built several airports there. American Airlines provided advertising and free usage of its aircraft in the 1951 film Three Guys Named Mike. Until Capital merged into United in 1961, AA was the largest American airline, which meant second largest in the world, after Aeroflot.
American Airlines introduced the first transcontinental jet service using Boeing 707s on January 25, 1959. With its 707s American shifted to nonstop coast-to-coast flights, although it maintained feeder connections to cities along its old route using smaller Convair 990s and Lockheed Electras. American invested $440 million in jet aircraft up to 1962, launched the first electronic booking system (Sabre) with IBM, and built an upgraded terminal at Idlewild (now JFK) Airport in New York City which became the airline's largest base. In the 1960s, Mattel released a series of American Airlines stewardess Barbie dolls, signifying their growing commercial success.[citation needed] Vignelli Associates designed the AA eagle logo in 1967. Vignelli attributes the introduction of his firm to American Airlines to Henry Dreyfuss, the legendary AA design consultant. The logo is still in use today.
By September 1970, American Airlines was offering its first long haul international flights from the West Coast to Honolulu and on to Sydney and Auckland via American Samoa and Nadi.
A fictitious "American Airlines Space Freighter", the Valley Forge, was the setting for the 1971 science fiction movie Silent Running, starring Bruce Dern and directed by Douglas Trumbull. The freighter featured the then-new "AA" logo on the hull, along with the crew uniforms and several set pieces.
On 30 March 1973 AA became the first major airline to employ a female pilot when Bonnie Tiburzi was hired to fly Boeing 727s. American Airlines has been innovative in other aspects initiating several of the industry's major competitive developments including computer reservations systems, frequent flyer loyalty programs and two-tier wage scales.
From 1971–1978 Beverly Lynn Burns worked as a stewardess for AA. She went on to become the first woman Boeing 747 airline captain when, on the afternoon of July 18, 1984, she commanded People Express flight #17 (aircraft 604) departing Newark International Airport at 3:30pm to Los Angeles International Airport. In a prearranged effort, this honor was shared with another female People Express captain Lynn Rippelmeyer, who flew flight #2 from Newark to London Gatwick at 7:35pm that same day.
Expansion in the 1980s and 1990s
After moving headquarters to Fort Worth in 1979, American changed its routing to a hub-and-spoke system in 1981, opening its first hubs at DFW and Chicago O'Hare. Led by its new chairman and CEO, Robert Crandall, American began flights from these hubs to Europe and Japan in the mid-1980s.
In the late 1980s, American opened three hubs for north-south traffic. San Jose International Airport was added after American purchased AirCal. American also built a terminal and runway at Raleigh-Durham International Airport for the growing Research Triangle Park nearby and compete with USAir's hub in Charlotte. Nashville was also a hub. In 1988, American Airlines received its first Airbus A300B4-605R aircraft.
In 1990, American Airlines bought the assets of TWA's operations at London Heathrow for $445 million, giving American a hub there. The US/UK Bermuda II treaty, in effect until open skies came into effect in April 2008, barred U.S. airlines from Heathrow with the sole exceptions of American and United Airlines.
Lower fuel prices and a favorable business climate led to higher than average profits in the 1990s. The industry's expansion was not lost on pilots who on February 17, 1997 went on strike for higher wages. President Bill Clinton invoked the Railway Labor Act citing economic impact to the United States, quashing the strike. Pilots settled for wages lower than their demands.
The three new hubs were abandoned in the 1990s: some San Jose facilities were sold to Reno Air, and at Raleigh/Durham to Midway Airlines. Midway went out of business in 2001. American purchased Reno Air in February 1999 and integrated its operations on August 31, 1999, but did not resume hub operations in San Jose. American discontinued most of Reno Air's routes, and sold most of the Reno Air aircraft, as they had with Air California 12 years earlier. The only remaining route from the Air California and Reno Air purchases is San Francisco to Los Angeles.
During this time, concern over airline bankruptcies and falling stock prices brought a warning from American's CEO Robert Crandall. "I've never invested in any airline", Crandall said. "I'm an airline manager. I don't invest in airlines. And I always said to the employees of American, 'This is not an appropriate investment. It's a great place to work and it's a great company that does important work. But airlines are not an investment.'" Crandall noted that since airline deregulation of the 1970s, 150 airlines had gone out of business. "A lot of people came into the airline business. Most of them promptly exited, minus their money", he said.
Miami became a hub after American bought Central and South American routes from Eastern Air Lines in 1990 (inherited from Braniff International Airways but originated by Panagra). Through the 1990s, American expanded its network in Latin America to become the dominant U.S. carrier in the region.
On October 15, 1998 American Airlines became the first airline to offer electronic ticketing in the 44 countries it serves.
In 1999 American Airlines, together with British Airways, Cathay Pacific, Canadian Airlines and Qantas Airways, founded the global airline alliance Oneworld.