American Airlines

A Look at Issues of Operating in the International Market

Group #9Pamela Sohal

Garrett SchickAdam Sharpe

Mary Catherine Schoals

Table of ContentsA Brief History and Introduction of American Airlines………………………..……………2

A Breakdown of Government Intervention……………………………………………….......4

Deregulation……………………………………………………………………………...4

International Open Skies Agreement…………………………………………………….5

Post 911 Intervention………………………………………………………………….....6

A Closer Look at Government Intervention for American Airlines………………………...7

Airport Security………………………………………………………………………….7

Overflight Fees…………………………………………………………………………..9

Emissions……………………………………………………………………………….11

Fuel Prices……………………………………………………………………………....12

How to Handle Government Intervention…………………………………………………...13

Safety…………………………………………………………………………………....15

Profitability……………………………………………………………………………...16

Emissions……………………………………………………………………………….17

Looking Toward the Future…………………………………………………………………..18

Works Cited………………………………………………………………………………...….21

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A Brief History and Introduction of American Airlines

American Airlines is cardinally known for being the world’s largest airline, with services

in 49 countries. The business began in 1930 as an air mail carrier. American Airlines was

originally called American Airways, and it formed from a conglomerate of 82 different airlines.

A few years later, the name was changed, and American Airlines went from being a mail carrier

airline to a passenger carrier airline, flying domestic routes to 72 cities across the Northeast,

Midwest, and Southwest. In 1934, the president of the company, E.L. Cord, hired C.R. Smith and

Donald Douglas. Together, they created the DC-3, a fixed wing, propeller driven airplane. This

aircraft made American Airlines the first airline to operate a route commissioned solely on

passengers (normally, in order for an airline to make enough money to travel on a route, they had

to carry mail along with it).

The creation of the DC-3 completely revolutionized the airline industry. Not only did it

make the industry more commercial, but it also helped significantly during World War II

(American Airlines continued to make history by expanding into the cargo business). In order to

help with the war effort, the airlines turned into a military airline, carrying cargo and soldiers all

over the world, and by doing so, American Airlines accomplished 2 major things: became the

first scheduled air cargo service in the world, and began the first coast-to-coast all cargo flight

(from New York to California). After World War II ended, American Airlines started to

transition into a more powerful airline. With the introduction of American Overseas Airways,

American Airlines continued to expand their global presence. This subsidiary of American

Airlines provided routes to Europe and Mexico, making it the second largest airline in the world.

By entering the international market, American Airlines made a name for itself on a global scale,

therefore increasing their market share. American Airlines continued to thrive in the 1960’s and

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70’s through innovations such as implementing the first electronic booking system (Sabre),

acquiring Caribbean routes, and introducing the Boeing 747 freighter (which holds the capability

of carrying 221,000 pounds of cargo).

When The Airline Deregulation Act of 1978 was enacted, “American Airlines increased

the domestic airports it served from 50 to 173” (Kahn) which enabled their ability to increase

their routes in the Caribbean market, a highly profitable sector of their business. During the late

90’s, American Airlines signed a contract to be a part of OneWorld, a global alliance which

created a partnership between American Airlines, British Airways, Cathay Pacific, and Qantas.

This coalition crystallized the power American Airlines had in the global market by the way the

airline was able to market its name by using routes operated by other airlines. As a decade went

by, more airlines joined this alliance (Iberia, Lan Airlines, Qatar Airways, and many more). This

established a symbiotic relationship between the airlines, where each airlines could now market

each other’s services over the routes predominantly used by their industry partners. People had

the option of starting with American Airlines in North America, but switching to a codeshare

flight to Australia (meaning that it’s marketed as an American Airlines flight number, but Qantas

is actually operating the aircraft). Both airlines made profit out of route and both airlines were

able to get their name across to the customer.

In December of 2013, U.S. Airways merged with American Airlines making American

Airlines the largest airlines in the world to this day. This airline continues to hold and expand

their large presence in the industry internationally, with constant successful strides linked to

innovative management and operations. However, like all modes of transportation, American

Airlines in subject to government intervention, both domestically and internationally.

Government intervention is critical in the functionality and profitability of any company;

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intervention (such as regulation) can be either fatally disruptive or favorably enabling to

manageability of certain risks. American Airlines is no stranger to government intervention,

especially in the scope of their international market reach. Like all modes of transportation,

American Airlines has had to juggle constant regulation to maintain operations that are both in

compliance and profitable to the company.

A Breakdown of Government Intervention

Government Intervention can be defined as a federal system placing rules and regulations

into sectors of the economy in order to achieve safety, social or economic objectives. The

Department of Transportation and the Federal Aviation Administration oversee all airport and

airline activity in the U.S (most countries in which American Airlines operates have some sort of

governing regulatory body to whom they must comply). The DOT and FAA are responsible for

creating and regulating aviation for safety. Aircraft must be capable of safe flight and meet

numerous standards to operate. The regulations number in the hundreds, but two of the most

important are The Air Transportation Oversight System (ATOS), and the Airport Compliance

Program.1 Although the federal government heavily regulates safety and infrastructure, the

industry today is considered to be deregulated. The federal government once held much more

economic control than they currently do. That all changed in 1978.

-Deregulation

The Airline Deregulation Act in 1978 shifted control over air travel from the government

to the free market. A federal agency, The Civil Aeronautics Board (CAB) used to control entry

and exit of firms into the industry. CAB also controlled pricing, agreements and mergers. Under

CAB, investment and operating decisions were strict. Since the CAB controlled pricing, airlines

struggled to differentiate themselves and were limited to competing in customer service and

1 faa.gov

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flight frequency. As a result, the flights were expensive and frequent. Seating capacity was

abundant and often flights would be half empty. Load factors were about 50% in the 1970s. In

today’s deregulated environment, airlines can compete in pricing and as a result more people fly

and fill seats much more often. Load factors today are around 75%.2 Post 1978 deregulation,

pricing and competition were relinquished to corporations. The CAB was eventually dissolved in

1985.3 The airlines were then allowed to grow and flourish as much as the market saw fit.

Deregulation was the “shot in the arm” that the ailing airline industry needed. Under public

control, the airlines in the U.S. did indeed grow and served as an example to other nations around

the world. Several nations in Asia and Latin America followed the U.S. lead and deregulated

their airlines to great success.4 Deregulation has changed our airline industry dramatically over

the last few decades. Many low cost carriers have sprung up in the market and compete heavily

with all of the legacy airlines that have existed prior to deregulation.

-International Open Skies Agreements

The United States has “Open Skies” agreements with around 115 countries to allow

foreign access to the aviation market and remove barriers to entry. These agreements also open

routes and let airlines decide where they would like to operate in the U.S. In addition, the

agreements allow U.S. firms to have foreign partners and access to international routes. Recently

the 3 remaining legacy carriers in the U.S. have appealed to the DOT.5 They claim that certain

middle-eastern nations and airlines have violated some open skies agreements. Three airlines

based in Qatar and United Arab Emirates are receiving subsidies from their governments and

2 Smith, Cox3 Smith, Cox4 Smith5 American, Delta, and United

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undercutting the big three airlines in America for international flights to and from the middle-

east.6

-Post 911 Intervention

Government regulation can come at a high cost for airlines, as they struggle to maintain

regulatory and legal compliance with the FAA. The classic example in recent history has been

the Aviation and Transportation Security Act of 2001. This act was enacted right after the

September 11 attacks on the World Trade Center, as well as the Pentagon. This act created the

Transportation Security Administration (TSA) with the U.S. Department of Transportation

(DOT) which currently enforces security regulations for airlines and airports. Prior to the act in

2001, passenger screening was outsourced by airlines to third parties. The specific purpose of

this act is to:

“establish procedures for notifying the Administrator of the Federal Aviation

Administration, appropriate State and local law enforcement officials, and airport

or airline security officers of the identity of individuals known to pose, or

suspected of posing, a risk of air piracy or terrorism or a threat to airline or

passenger safety;”7

All the newly required funds for the increased security was designed by the Passenger Civil

Aviation Security Service Fee enacted by the 2001 act. The fee is “imposed” through passenger

tickets for flights that originate from the United States, with a maximum charge of $5.00 per one-

way trip. “The Fee offsets a portion of the Transportation Security Administration’s Aviation

Security appropriation, complemented by other revenue-generating fees set forth in the ATSA.”8

The remainder of the funds needed to operate and manage this new security system, are left up to

6 Lindenberger7 Aviation and Transportation Act summary; tsa.gov8 Www.wm.edu

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the respective airlines, which has proven a hindrance in cost of profitability for years after 2001.

The federal government believes that it can handle safety better than a public firm. The

overwhelming opinion of the American public is that these two agencies have changed the

airlines for the worse. Whether one of these beliefs is true will only be demonstrated through

time.

A Closer Look at Government Intervention for American Airlines:

-Airport Security

On September 11, 2001 American Airlines Flight 11 (passenger flight) was hijacked by

five al-Qaeda affiliates. Mohammed Atta, the al-Qaeda who forcibly took control of the cockpit,

intentionally crashed the Boeing 767-223ER in the North Tower of the World Trade Center at

8:46 a.m. local time. All 92 passengers abroad the plane were killed, along with thousands of

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people in the tower itself. This terrorist attack shocked the nation, and the world. The ability for

this degree of hijacking inside the United States cracked open the whole nation’s security

system, especially for air transportation. Vulnerabilities in the system where sought out with a

vigor that could only exist during times of war and fear. The TSA was created, and The

Department of Homeland Security acted as the police for the nation’s borders. Although many

airlines during this time did more than cooperate with the new disruptive environment, many

companies suffered in both demand and profitability, including American Airlines.

After the 9/11 attacks, Congress granted $10 billion to struggling airlines as loans to

implement the new security measures. These loans were not enough to stop several airlines

(including United Airlines and US Airways) from declaring bankruptcy. The attacks spurred a

time of canceled flights, increased expenditures, and decline of passenger demand. The

establishment of the TSA is currently viewed as one of the largest overhauls, of airport security

processes and also one of the most immediate/long-term implementations after the 9/11 attacks.

Although, in many cases this added feature of security does not directly affect airlines, the

complexity and time-consuming activity does divert a significant amount of passenger traffic to

alternative routes. A study from Cornell University in 2007 reported “a 6 percent reduction in

passenger volume across the board, with a 9 percent reduction in the nation’s busiest airports,

totaling a nearly $1 billion loss for the airline industry.”9 In the ten years before 2010, American

Airlines has lost $11.5 billion, and is expected to continue to do so. AMR Corp. (American

Airline’s parent company), is projected to lose money in 2011 and 2012, even though its major

U.S. competitors are expected to make profit.10

9 http://traveltips.usatoday.com/effects-911-airline-industry-63890.html 10 http://articles.latimes.com/2011/jul/01/business/la-fi-american-20110701-19

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Business Insider magazine highlighted the 13 ways that the airlines have changed since

the 9/11 attacks; airlines have lost around $55 billion since 2001, they have cut about 160,000

jobs, the number of seats on flights have been cut to certain destinations, of course security

practices have been completely reformed, some of the world’s oldest airlines went bankrupt,

many companies ended up merging to save their airlines, many “extra” fees have been added to

make up for the loss incurred by airlines, major cuts in food and customer service were made,

and the percentage of fuel surcharges have sky-rocketed due to the increase in prices. According

to IATA, “the greatest legacy of 9/11 is its impact on airport security and passenger

experience . . . among its conclusion: governments have to foot the bill for security threats. Right

now, airlines and their passengers are spending billions on security, a total of $7.4 billion last

year.”11

-Overflight Fees

The Federal Aviation Administration charges “overflight fees” to air flight patterns

utilizing U.S. air space without taking off or landing in the country. Although these fees have not

been updated for a decade and still are based on the 1999 cost activity accounting. This fee is

justified by the increased cost of operations in the current airline market. The set of rights

defining these fees and other charges as well is known as the “Freedoms of the Air”. These

standard sets of “rights” contains nine sets of freedoms outlining the different international trade

transactions between regions and established partners. The United States is far from the only one

the charges these fees for permission to “fly over”, in fact, most countries has some variation of

this fee enacted in their regulations. For example, Cameroon uses a set rate for pass-overs,

Canada uses 3.6 cents (Canadian) times the distance of flight and weight of craft, and the U.S.

11 http://www.travelpulse.com/news/features/iata-analyzes-longterm-impact-of-911-on-aviation-industry.html

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uses tax fees paid by the passenger to the airlines, which are then paid into a trust fund. With no

standard method of charge, coordinating all these fees across international destinations and

layovers add up to an intense cost to airlines and passengers. The International Air Transport

Association (IATA) “estimates that the world’s carriers spend more than $20 billion a year on

such navigation user fees”.12 Overflight fees, because of their costly nature, have become a target

area for attempts to minimize costs. These fees have been known to cause bankruptcy in the past

if not carefully monitored. Currently, American Airlines is looking into switching to new

software on its route network to balance the costs between overflight fees and distance traveled.

According to AirCanada "In the operating world of an airline, the flight-planning system is

absolutely critical to cost control.”13

12 www.wsj.com 13 http://www.wsj.com/articles/SB117314795095227844

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-Emissions

Aircraft engines emit heat, noise and gases that affect climate change. With the rapid

growth of air travel and the population, steps are being taken to reduce the increase of all these

contributions. According to the European Union, “greenhouse gas emissions from aviation

increased by 87% between 1990 and 2006.”14 Agencies such as the EPA in the U.S. and the

European Union are looking to place restrictions, or taxes on emissions from aircrafts, which

could end up hurting both the airlines and the passengers (a 2012 decision by a district court

ruled that the Clean Air Act compelled the EPA to evaluate whether airplane emissions are a

danger). Currently there is no timeline set for when these regulations will be enacted, however

there is an anticipation of a potential “endangerment proposal”, which would declare greenhouse

gas emission as a danger to public health or welfare. Although a final determination is not

expected until spring of 2016, it is believed that the EPA will find proposed danger, and major

restructuring of operations for compliance will affect the airlines in cost and in efficiency. Like

overflight fees, each imposed regulation would differ by country and by government authority.

Compliance with all these different regulations will be costly, and time-consuming, which will

affect the airlines directly, especially internationally. Since 2012, American Airlines has been

included in the European Union’s Emissions Trading Scheme (EU ETS). The ETS is a “cap and

trade system that requires companies within specific industries to submit allowances to cover

certain emissions from their operations.”15 Although American Airlines states on their website

that they are complying with the applicable requirements, they are doing so “under protest”.

They continue on by explaining how much of the airline industry throughout the world views the

14 http://en.wikipedia.org/wiki/Environmental_impact_of_aviation 15 http://www.aa.com/i18n/aboutUs/corporateResponsibility/profile/public-policy.jsp

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regulation of greenhouse gas emissions as a global approach, and not an individual effort of

certain governmental bodies.

-Fuel Prices.

There is one common constraint that affects airlines across all countries: high fuel prices.

When looking at the average profit margin of the more than 200 carriers, IATA reports around a

net of 2.4%, or $6 per passenger. “Margins are so thin that the airline industry expects to make

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less money than the oil industry will make from selling all the fuel it consumes.”16 In most cases,

fuel prices end up contributing to almost 30% of total operating costs for airlines. Some of the

steps certain airlines have taken to deal with rising fuel prices range anywhere from cutting the

number of domestic seats offered, improved aerodynamics, and reconfigured fleets to be more

fuel efficient. These measures tend to have the effect of a band-aid fix, subject to the volatility of

the fossil fuel market.

How to Handle Government Intervention

Given the extent of government regulation which airlines such as American Airlines is

forced to adhere to in the business of air transportation, their ability to conform and adapt to

continuously evolving regulations is paramount. Currently, American’s ability to operate in

international markets is subject to aviation agreements between the U.S. and the other countries

or governments in which it chooses to operate. Agreements between the U.S. and various

16 http://blogs.wsj.com/corporate-intelligence/2014/06/02/jet-fuel-price-lowers-ceiling-on-airline-profit/

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governments, are periodically subject to renegotiation. This makes the adaptability of American

Airlines, in various countries, vital to the ability to operate successfully. Open skies regulations

continue to be a hurdle for the company. Even though the U.S. has worked to increase the

amount of countries with which it has an open skies agreements, there are still a number of

important markets which do not, such as China, Hong Kong and Mexico. As stated in the

American Airlines 10-k:

“If we are unable to obtain and maintain adequate facilities and infrastructure throughout our system and, at some airports, adequate Slots, we may be unable to operate our existing flight schedule and to expand or change our route network in the future, which may have a material adverse impact on our operations”17

The ability to operate fluidly and efficiently in foreign environments, greatly affects the

company’s capability of conducting profitable international service. It is important the airline

collaborates with U.S. government to reduce the barriers in serving the needs and benefits in

these important markets. Through American’s Political Action Committee, which was founded

in 1985, these issues can be addressed. The participation in industry associations such as,

Airlines for America, the International Air Transport Association and the Regional Airline

Association will continue to be important while moving into the future.

It is also important to note the many other DOT and FAA regulations which affect

company operations including: lost baggage fees, tarmac delays, flight bumping and pilot work

restrictions. As with all of these regulations, it is the airline who is able to best adapt and work

within the given constraints which can produce a competitive advantage; leading to increased

profitability and added market share. In the future, American Airlines will need to stay diligent

17 http://phx.corporate-ir.net/phoenix.zhtml?c=117098&p=IROL-secToc&TOC=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9vdXRsaW5lLnhtbD9yZXBvPXRlbmsmaXBhZ2U9MTAwOTkxOTUmc3Vic2lkPTU3&ListAll=1&sXBRL=1

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in their ability to constantly be evolving and reacting to government regulations. The ability to be

flexible with their operation, as well as a continuous approach to process improvements within

regulatory constraints, will serve the company best in the future.

-Safety

In regards to safety issues, in 2011, American updated their Safety Management System

(SMS) which included improved processes for in-flight safety procedures, data collection, as

well as safety and security training. Since 2011, the Federal Aviation Administration (FAA) has

been a vital partner in helping to identify safety and security issues. In 2011, American Airlines,

among other airlines, participated in a SMS pilot project by the FAA which encourages

collaboration in identifying industry best practices for SMS implementation. It is important that

American Airlines continues to work collaboratively with the FAA in the future in an effort to

provide a safe environment for its customers and employees.

In the passing of the Aviation Transportation Security Act and the forming of the

Transportation Security and Administration (TSA), there have been many increased fees and

costs associated with implementing compliance requirements. The increased fees and costs

associated with these requirements have been passed on to the airlines and customers alike; this

will continue to be the case as time progresses. In the future, continuing competitive pressures

could result in American Airlines, among others, being unable to recover the costs of additional

security requirements through increased fares to passengers. With the inability to forecast new

security and safety requirements or related costs of compliance with such requirements; the only

recommendation that can be given would be to continue a close partnership with homeland

security, continuously improving screening procedures, resulting in a higher level of efficiency.

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-Profitability

Currently, American Airlines’ single largest expense affecting profitability is aircraft

fuel, which for most airlines represents about 30% of total expenses.18 Changes in availability,

price volatility and cost of aircraft fuel can greatly affect American’s operating results.

“American attempts to control the price and supply of fuel, by participating in the trading and

shipping of fuel while maintaining fuel storage facilities to support flight operations.” This

allows them to better absorb the volatile nature of the commodity and we will continue to see

them do this in the future.

Prior to 2014, American has participated in fuel hedging which has provided some safety

from the volatile nature of fuel cost. Shifting to a new strategy, in 2014 American ended its

contracts in fuel hedging. This bold and risky move has allowed American Airlines to take

advantage of plunging fuel costs and report a net income of $4.2 billion compared to $1.2 billion

in 2013. It is estimated; this change in strategy has resulted in a savings of $600 million.19 While

this strategy is risky, it has resulted in a competitive advantage for American, with other airlines

taking a more conservative approach, participating in fuel hedging resulting in the inability to

capitalize on the steep price drops in fuel. Currently, American Airlines has no plans to shift its

current strategy in non-participation of fuel hedging in the near future.20 With the volatile nature

of fuel, this strategy could back fire at any given time. It is recommended that American remain

18 http://www.latimes.com/business/la-fi-airlines-fuel-hedging-20150128-story.htm

19 http://www.latimes.com/business/la-fi-airlines-fuel-hedging-20150128-story.htm

20 http://phx.corporate-ir.net/phoenix.zhtml?c=117098&p=IROL-secToc&TOC=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9vdXRsaW5lLnhtbD9yZXBvPXRlbmsmaXBhZ2U9MTAwOTkxOTUmc3Vic2lkPTU3&ListAll=1&sXBRL=1

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diligent in their awareness of market trends and producing accurate economic forecasts. Fuel

costs will continue to be the single most important factor in company profitability.

-Emissions

Leading to today, American Airlines has had to work within, and adjust to, many guidelines such

as U.S. federal laws, as well as European Union regulations regulating greenhouse gas emissions

(GHG) and aircraft noise level constraints. As public awareness to this subject matter continues

to grow, so will the regulations. According to the American Airlines website, the company has

taken a proactive approach in reducing their “footprint” with a number of measures. As of 2013,

American Airlines and US Airways took delivery of 75 new aircraft. These newer models have

resulted in a reduction of overall emissions and noise levels. As stated on their website,

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American’s fuel reduction programs have saved more than 1 billion gallons of fuel and reduced

emissions by 10.5 million tons of CO2. It is also stated, since American Airlines’ pilots now

carry iPad’s instead of paper manuals, the weight reduction has resulted in the savings of

400,000 gallons of jet fuel annually. Although, American Airlines has taken measures to reduce

their environmental impact of today, it will be important to continually address these issues in

the future.

Looking Toward the Future

When American Airlines initially announced the merger with U.S. Airways, major

complications ensued internally with the employees and externally with the customers. This

news even sparked a law suit against both airlines from the federal government. They were under

the impression that the airlines were creating a monopoly within the airline industry (the lawsuit

never went to trial and was dropped in December of 2013). This merger has opened major

windows for American Airlines; ever since the merger closed, American Airlines has officially

become the largest airline in the world.

There are many complications involved during the merger between American Airlines

and U.S. Airways, primarily, the routes operated between the two. U.S. Airways has major hubs

in Philadelphia, Phoenix, and Charlotte whereas American Airlines has hubs located in Chicago

O’Hare, Dallas Fort Worth, New York’s JFK, Miami, and Los Angeles. Each airline has separate

routes to these cities, but now the merger has created overlap between the routes. Both airlines

had to reduce the amount of direct routes they did in their hub cities, which meant that passenger

cargo and airline reservations had to be switched. Another complication present is the fact that

people were under the impression that since the airlines were merging, double the amount of

aircrafts would be available for transportation. The DOT will only allow the airlines to operate a

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certain amount of planes. On the cargo side of things, it creates less room to store goods, for the

passenger side, it creates major complications with their seat reservations. The airlines added

more seats to their plane which creates less legroom and less room for their suitcases, a change in

the reservations booked in advance (before any of the changes were implemented). Lastly, both

airlines use two different reservation systems which must be on-boarded into one. This is most

challenging due to “American and US Airways each hav(ing) about 700 systems, or 1,400 in

all”.21 The goal is to condense the systems back down to 700, for cleaner integration. The plan is

to have this reservation system properly combined by the end of 2015. The training sessions are

conducted at home for the employees and they are encouraged to reach out to their supervisors if

they need help.

The best recommendation to make the future of the merger between American Airlines

and U.S. Airways is to adequately inform customers about the future changes and to properly

train the employees on how to handle these situations. For instance, with the merger in place,

several flight reservations are changing without receiving proper notice. This causes customers

to get angry due to travel plans being disrupted. Rather than just changing the route to comply

with the merger, the airlines should keep the same routes for now and gradually discontinue their

own routes to where they can add future (merger approved), routes that the customer can choose

from during the time of booking. That way, there’s no major changes involved and the customer

actually gets to choose the route they feel more comfortable with rather than simply dealing with

the change. A far as the reservation system implementation goes, the airlines should create

professional training classes for employees rather than the at-home training. This would create a

stronger environment for them to learn from, and to be better prepared to assist customers.

Furthermore, since the reservation system will be applied in the office first, they should have

21 http://www.dallasnews.com/business/airline-industry/20141206-a-year-into-its-merger-with-us-airways-american-airlines-is-flying-high.ece

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employees come in to work at the office throughout the implementation so that they can get used

to the new system.

Works Cited

20

"Airline Deregulation." , by Alfred E. Kahn: The Concise Encyclopedia of Economics. N.p., n.d. Web.

30 Apr. 2015.

"Calculating Costs in the Clouds." WSJ. N.p., n.d. Web. 30 Apr. 2015.

"The Effects of 9/11 on the Airline Industry." Travel Tips. N.p., n.d. Web. 30 Apr. 2015.

Goldschein, Eric. "13 Ways The U.S. Airline Industry Has Changed Since 9/11." Business Insider.

Business Insider, Inc, 08 Sept. 2011. Web. 30 Apr. 2015.

Maxon, Terry. "A Year into Its Merger with US Airways, American Airlines Is Flying High." N.p., n.d.

Web. 30 Apr. 2015.

19, 2001 Public Law 107–71—Nov., and 115 Stat. 49 USC 40101 Note. TITLE I—AVIATION

SECURITY (n.d.): n. pag. Web.

N.p., n.d. Web.

"Overflight Fee Contacts." Overflight Fee Contacts. N.p., n.d. Web. 30 Apr. 2015.

F. Smith, B. Cox, Airline Deregulation Web. 26 Apr. 2015 www.econlib.org

M. Lindenberger, U.S. airlines say they’re at a disadvantage The Dallas Morning News. Web 26 April

2015. www.dallasnews.com

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