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What does the future hold for American Airline?
SHORT TERM - As people become more relaxed and familiar with the new security issues in air travel the market will rebound from the 9/11 disaster, however America Airline can not withstand this downturn by doing nothing. If they fallback, regroup, and survive, then as the airline industry regains strength they will be able to re-grow their business.
LONG TERM - American Airlines, actually all airlines, must become a financially stable company to be a competitor in the airline industry. The transportation industry will be changing. Do to high-speed audio and visual communication coupled with the fact that high speed trains are becoming functional in North America, business travel will become less. American Airlines will be challenged with these future threats.
It is obvious that the future of the airline business is vague. Basically, "aircraft vehicles are at a stagnant point, where new designs are limited and only modifications of older designs exists". Further developments of engines have reached a point where it consumes too much money and time. Airline "traffic volumes increase rapidly and there seems to be a shortage of facilities to cater for this increase. Ticket prices remain stagnant if not decreasing in small volumes, whereas maintenance costs remain high if not increasing".
To combat these issues American Airlines is going to have to focus on making some dramatic changes to stay on top of the fast changing industry.
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