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Projects: Integration



American Airlines: Hitting Turbulence



By Deborah Gage

  Table of Contents:
  1. American Airlines: Hitting Turbulence
  2. ' American Airlines Base Case '

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

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American Airlines: Hitting Turbulence - ' American Airlines Base Case '


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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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