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Rich tradition In an effort to consolidate its overwhelming route structure, the New York-based Aviation Corporation (AVCO) founded American Airways in 1930. The company was re-formed as American Airlines in 1934, when new postal regulations compelled AVCO to break up its aircraft-manufacturing and transportation businesses. By the end of the '30s, American had beaten out United as the nation's largest airline. In 1964, under the direction of C.R. Smith, the company introduced SABRE, the first automated reservation system in the industry. By using SABRE to track mileage records, American Airlines also became the first in the industry to introduce a frequent flyer program, AAdvantage, in 1981. The company moved its headquarters from New York to Texas in 1979. In 1989, the company fought off a takeover bid by Donald Trump. New alliances Today, American Airlines ranks as the second-largest airline in the United States. The company is owned by parent company AMR and continues to expand through acquisitions and alliances. In July 1998, European Union officials gave preliminary approval to a proposed alliance between American and British Airways that would allow the two companies to control 60 percent of the United States-Great Britain market. Although the EU required the two companies to make provisions to foster competition (such as giving up some airport slots) and the alliance must still pass further review, the two companies are understandably excited by the deal. Also in 1998, American established a relationship with Japan Airlines and joined with British Airways, Canadian Airlines, Cathay Pacific and Qantas to form a "Oneworld" global alliance. Donald J. Carty, a former American Airlines president, also replaced Robert Crandall as chairman/CEO in the same year. It may have been from Nevada, but it sure wasn't a jackpot American Airlines bought Reno Air for $124 million in December 1998 as part of its desire to compete against United and Southwest Airlines in the West Coast region by offering more nonstop flights to the area. The acquisition may have created more problems for American Airlines than it was worth, however. In February 1999, pilots from both airlines went on strike, claiming that Reno Air pilots were not receiving the same salary as those of American even though they were now considered to be one and the same. The strike grounded more than 2,500 flights and inconvenienced approximately 90,000 customers, creating a huge disaster for American Airlines. American brought the pilot's union to court in an April decision that finally benefited the airline. The union was forced to pay $45,000 to end the conflict and in June 1999, American was finally able to incorporate Reno Air into its own fleet, giving Reno Air employees American Airlines uniforms to wear and painting the planes of Reno Air to match those of American's. Many rumor that the battle is far from over, however, since old Reno Air pilots still claim that they are not being given the same salary as those of American's pilots. Forget about a glass of wine, a bed too? First-class seating just seems to keep getting nicer. As part of the growing demand for business-class seating on international flights, American Airlines has decided to jazz up its first class section a bit by providing seats that can turn into beds. The beds will be provided on American's larger planes such as the 15 777 long-range jetliners which the airline expects to receive between 1999 and 2001. To handle the expected plane shipment, American Airlines is retiring nine Boeing DC-10s by the end of 2000 and 16 Boeing 727s by 2003. The airline also plans to build a $1 billion terminal in the John F. Kennedy airport in New York to accommodate 40,000 passengers daily at 220 check-in counters. American Airlines is also changing its frequent-flier mileage policy to keep up with customer demand. As of 1999, American Airlines allowed all AAdvantage program members the ability to use their miles to travel on either American or US Airways.
American Airlines conducts extensive college recruiting, but applicants can also browse a descriptive listing of the latest openings by consulting the company's web site, located at www.americanair.com. At the site, the company provides interested applicants with the opportunity to construct a resume on line and send it directly to the company. American Airlines also accepts resumes by e-mail, fax, and regular mail. The on-campus recruiting process includes an on-campus interview, during which "a variety of general background questions and questions to determine analytical aptitude" are used. Insiders tell us that for those schools at which American does not make recruiting visits, a phone interview will replace the on-campus interview. The screening interview is followed by an on-site interview at American's Fort Worth headquarters, which lasts "a half to three-quarters of a day." This interview schedule will include "both potential managers and peers."
Culture makeover With the arrival of new CEO Don Carty, American's traditional coporate culture might be in for a makeover. Carty's predecessor, Robert Crandall, was known as a bit of a party pooper, calling board meetings during the Super Bowl and installing a strict business dress policy (which has relaxed toward the end of his tenure). Reports one employee: "The corporate culture is largely old-line, hierarchical, but it may be changing under the new leadership of CEO Don Carty." Under Carty, American's headquarters switched to a business casual dress policy in the summer of 1998. The perks of working for an airline Employees report that "all employees receive profit sharing, which in the past few good years has been as high as 12 percent of base pay." And don't forget those famous airline perks. To fly from Fort Worth in coach to either coast costs $10. Raves one insider: "You have unlimited flight benefits where you can fly anywhere we fly for next to nothing. You can fly overseas for less than $100." Employees also have the opportunity to upgrade into Business Class and First Class for a fee. However, one insider cautions about upgrades on the cheap tickets -business travel is also space available and can be an incredible hassle if the flight you need is full of paying passengers. Not a sweatshop As for quality of life concerns: "Eighty-hour weeks are uncommon here. A standard workday in finance and planning is 8:15 to 6:15, with a half to one-hour lunch at the cafeteria or your desk." Says one insider: "It isn't uncommon to put in more time, but weekend work is uncommon." Also, the company has a "major diversity effort underway," which involves organized ethnic, religious, and other groups "advising the company on personnel and marketing policies."
Human Resources
Air travel;Shipping/freight
AirTran Holdings;America West;Comair;Continental Airlines;Delta;Mesa Air;Mesaba Holdings;Northwest Airlines;Southwest Airlines;TWA;UAL;US Airways More Company Profiles For more career information, go to Vault.com ©2000, Vault.com Inc
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