American Airlines Base Case

By Deborah Gage  |  Posted 2003-07-01 Email Print this article Print

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Forty years ago, the Sabre computer reservation system propelled American Airlines' business to great heights. Today, it could contribute to the company's demise.

American Airlines Base Case

Headquarters: 4333 Amon Carter Blvd., Fort Worth, TX 76155

Phone: (817) 963-1234

Business: Commercial airline

Chief Information Officer: Monte Ford

Financials in 2002: Revenue, $17.3 billion; net loss, $3.5 billion.

Challenge: Cut costs and boost revenue while winning customers back from low-cost carriers.

Baseline Goals:

  • Avoid filing for bankruptcy protection.
  • Cut $4 billion in costs annually.
  • Increase cash on hand from $2 billion, to better cover operating costs during downturn.

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    Senior Writer
    Based in Silicon Valley, Debbie was a founding member of Ziff Davis Media's Sm@rt Partner, where she developed investigative projects and wrote a column on start-ups. She has covered the high-tech industry since 1994 and has also worked for Minnesota Public Radio, covering state politics. She has written freelance op-ed pieces on public education for the San Jose Mercury News, and has also won several national awards for her work co-producing a documentary. She has a B.A. from Minnesota State University.



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