American Airlines Executive Summary

However, in 1934, postal regulations force the separation on the airline from its airplane manufacturer parent due to antitrust concerns. This was feasible because the united states mail heavily subsidized the airlines in those people days, rendering it excellent influence and power inside industry. Yet commencing in 1936, thanks to its buy and use on the highly successful DC-3 passenger airliner, American Airlines became profitable because of its passenger assistance and shed its dependence of the mail-carrying business. Thus by the start of World War II, American Airlines had surpassed United as the biggest airline company from the US.

After the war, American expanded overseas, initially to Europe (American Airlines, 1996). In 1963, the business diversified to the hotel business, forming Americana Hotels. In 1964, American introduced the industry's first automated reservation system, called SABRE, which revolutionized that essential component of the airline operation. In 1971, the company bought Trans Caribbean Airlines, giving it a strong foothold in that region's booming tourist trade. In 1977, American additional expanded its hotel holdings by buying the Howard Business and, by 1978, operated 21 hotels and resorts during the US, Latin America, and South Korea.

In the early 1980s, American introduced the industry's very first "frequent flyer" process (American Airlines, 1996). In 1982, the airline made AMR as its parent company, being its main subsidiary within the process.

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