External Factor Analysis Summary of American Airlines

External Factors

Weight

Rating

Weighted Score

Comments

Opportunities

1. They have access to a state of the art ticketing system.

2. They are located in most airports.

3. They have a flexible route system that can appeal to most clients.

4. There is a growing demand for them.

5. They have the ability to make new acquisitions if they chose to.

6. New fuel efficient engines

Threats

1. Fuel prices are always fluctuating.

2. Constantly regulated by government agencies.

3. Other airlines providing lower fares.

4. Economy impacts travel.

5. Terrorism affects travel.

6. Business travel is declining.

.10

.10

     .10

.05

.05

.10

.

.10

.05

.10

.10

      .05

.10

4

3

3

3

3

4

2

3

4

3

3

2

.4

.3

.3

.15

.15

.4

.2

.15

.3

.3

.15

.2

1. Use SABRE which is a state of the art system.

2. 80 domestic destinations and 83 international ones in 49 countries.

3. Routes fly into all major cities.

4. Due to their routes, and in particular the ones from Miami to Ecuador.

5. Merging and gaining other airlines business.

6. Have the youngest, most fuel efficient aircraft.

1. Ticket prices go up and people take alternative travel means.

2. Nothing can be done about this specifically so it becomes a threat to them if people aren’t happy.

3. They have competitive prices as well.

4. People put travel on hold when the economy takes an impact.

5. People are nervous to fly when terrorism affects different countries.

6. Companies are looking for cheaper ways to do things i.e., more local training, video conferences, etc.

Total

1.0

3.0