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U S Airlines - Their Past and Present

Added: 04/05/2006

As compared to other mature industries, the airlines constantly form new business combinations that range from loose and limited partnerships to long term alliances of groups of companies and actual mergers. The scope of US airlines are from those operating a single airplane to full service international airlines, owning a great number of airplanes of various types. As for airline services, they can be classified as intercontinental, domestic or regional, and can be operated as charters.

Various types of airline companies, the routes they serve and operating scope makes the U S airlines industry complex and intricate on the face of it. However, there have emerged some distinct patterns in the last five decades of experience.

First and foremost, it is the general pattern of ownership, which has changed from government owned to independent public companies. This allows more freedoms in matters that are frequently decades apart. Another important feature is the constantly increasing demand for air travel services, which generally depends on such factors as business passenger demand and leisure passenger demand.

In the late 1950s - early 1960s annual growth rates of more than 15% were common, while the annual growth of 6-7% continued through the 1990s. Speaking about the general patterns, we should also mention an increasing number of mergers taking place in the United States. Since 1978 more than 200 US airlines have been taken over, merged or gone out of business. A number of international airline managers continue lobbying their governments to allow greater consolidation with the aim of achieving higher efficiencies.

Currently there exists an array of U S airlines, ranging from small airline companies for carrying cargo or main to large full-service airlines, operating hundreds of airplanes. The largest airline in both the United States and the world in terms of a number of passengers transported, and the world's second largest airline after Air France KLM in terms of total operating revenues, American Airlines operates flights throughout the United States, in addition to scheduled flights to the Caribbean, Latin America, Canada, India, Japan and Western Europe.

Headquartered in Texas, the company is a subsidiary of the AMR Corporation. As the largest and the most important of all U S airlines, American Airlines carries more passengers between Latin American and the United States than any other airline company, and is also recognized as an important player in the transcontinental market. As of February 2006 American Airlines serves over 171 cities worldwide with a fleet of 707 aircraft.
 
Located in Houston, Texas, Continental Airlines belongs to the group of five largest U S airlines, and is recognized as the sixth largest airline in the world. It operates flights to destinations throughout Europe, Asia and the Americas from three hubs at Hopkins International Airport, Newark Liberty International Airport and George Bush Intercontinental Airport.

In addition, Continental Micronesia covers destinations in Polynesia, Hawaii, East Asia and Southeast Asia and Australia from Antonio B. Won Pat International Airport in Guam. Continental Airlines also owns ExpressJet Airlines, the separate public company operating under the trade name Continental Express.

Established for the convenience of processes and services within the airline industry, the Federal Aviation Administration is the agency of the US Department of Transportation, empowered to oversee and regulate all aspects of the US civil aviation.

Over the years the FAA has developed a range of tools to handle different problems, notably the Airspace Flow Programs, Ground Delay Programs and more.




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