Business Development Plan Essay
In order to overcome the current challenges faced by the American Airlines, our major emphasis will be on developing new and more profitable markets. Historically, we have served a very limited market however, with the expansion into new and more profitable markets we basically aim to broaden the choices available us in terms of maintaining and increasing our profitability. New markets which we are aiming at include China, India as well as Russia where we believe there is still a large room available to cater to the different needs of a rising class of white collar professionals who need frequent travelling from one place to another.
Our initial focus will also be on curtailing the costs especially fuel expenses by focusing more on our core activities and scrapping those activities which do not directly fall under our core expertise. Fuel hedging has been positively related with the firm value therefore by strengthening our team of financial professionals, we aim to develop expertise in saving our fuel expenses through effective fuel hedging techniques. (Carter, Rogers, & Simkins, 2002).
We also plan to purchase more fuel efficient planes and follow the IAT goal of improving the fuel efficiency by 25% by the year 2020.
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Security is also a critical issue specially in our American market thus we will be focusing on developing an in-house security nets so that travelling with us becomes more safer and secure. This also means a major overhauling of all aircrafts to reduce the chances of failure while travelling in air.
- Carter, D., Rogers, D. A., & Simkins, B. J. (2002). Does Fuel Hedging Make Economic Sense? The Case of the US Airline Industry. Retrieved July 13, 2009, from SSRN: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=325402