American Airlines' CEO Doug Parker is retiring on March 31 after two decades of leadership.
Analysts say he is leaving the company well-positioned "to take advantage of the post-pandemic recovery in travel."
American got its start in 1921 and is made up of over 80 merged companies, like US Airways and Trans World Airlines.
American Airlines announced in early December that its long-running CEO Doug Parker is stepping down after 20 years at the helm.
American Airlines CEO Doug Parker stepping down from 'truly the best job in our industry'
During Parker's two-decade tenure, he consolidated a number of carriers into American through mergers to create the largest airline in the world.
Source: Forbes
However, his leadership is just one part of the carrier's 95-year long history.
American's journey started in 1921 with the founding of Robertson Aircraft, a general flying service and manufacturing company. In 1926, the company operated its first-ever flight between St. Louis, Missouri, and Chicago, Illinois.
Source: American Airlines, Britannica, FAA
The famous Charles Lindbergh was the pilot flying the maiden mail route, ferrying US envelopes and packages between the cities. The flight is considered the first regularly scheduled service of what would become American Airlines.
Source: Britannica, FAA
The same year, charter company Colonial Air Transport, formerly known as Bee Line, started carrying mail between New York and Boston.
Source: Britannica, FAA
The companies were independent, but, in 1929, the two merged to create the holding company, Aviation Corporation. This was the first union that would eventually establish American Airlines, which consists of some 85 merged companies today.
Source: Britannica
Aviation Corporation was reorganized as an operator and renamed American Airways in 1930 after new laws and reduction of mail routes forced companies to rethink their business models.
Source: Britannica
Finally, in 1934, the company became American Airlines after reworking its routes into a connected system. Cyrus Rowlett Smith, better known as C.R. Smith, was named CEO of American that same year.
Source: Britannica
After eight years of shuttling mail, American began to invest in passenger service. Smith worked with aircraft manufacturer Donald Douglas to develop the DC-3 passenger plane that would change the course of airline history.
Source: American Airlines
The DC-3 was built to carry passengers and make air travel profitable for carriers without relying on government subsidies. The first version was the Douglas Sleeper Transport, also known as Skysleepers, which was delivered to American in 1936.
Source: Boeing
The luxurious plane had 14 comfortable seats and four compartments that could convert into seven berths, with seven additional beds that folded down from the cabin ceiling.
Source: Boeing
The aircraft could carry 28 daytime passengers or 14 overnight passengers.
Source: Boeing
American flew the first DC-3 flight on June 15, 1936, from New York to Chicago. The company was also the launch customer for the standard 21-seater DC-3, which came shortly after the Skysleeper.
Source: Boeing
In the mid-1940s, American took interest in overseas operations. The company acquired American Export Airlines (AEA) in 1945, which already had transatlantic rights to fly across the pond to northern Europe — a market dominated at the time by Pan Am.
Source: The Dallas Morning News
The international service started with Vought-Sikorsky VS-44 flying boats on routes between New York and cities like Shannon, Copenhagen, Berlin, Oslo, and Helsinki.
Source: Airline Timetable Images
AEA was renamed American Overseas Airlines (AOA) in 1945 and launched its first flight from New York to London Heathrow via Boston; Gander, Newfoundland; and Shannon, Ireland, using a DC-4 named Flagship New England.
Source: The Dallas Morning News
However, unsatisfied with its performance, American sold AOA to Pan Am in 1950 and abandoned its London route, not returning to the city until 1982.
Source: The Dallas Morning News
In 1953, American pioneered transcontinental travel using the DC-7 between New York and Los Angeles. It was the first airliner to operate the route in both directions.
Source: American Airlines
In addition to the DC-3, American also had a hand in developing the DC-10 trijet. The company wanted a widebody plane that was smaller than the mammoth Boeing 747 but could still operate long-haul routes to airports with shorter runways.
Source: American Airlines, Airways Magazine
American called on McDonnell Douglas in 1966 to produce the plane and placed an order for 25 of the new jet in 1968.
Source: Airways Magazine
The DC-10 took its maiden flight in 1970 and first entered commercial service with American in 1971 on a roundtrip flight between Los Angeles and Chicago.
Source: Airways Magazine
In the 1970s, American started expanding, growing from a smaller US carrier to a large international player. In January of that year, the airline acquired Trans Caribbean Airways, gaining routes to places like San Juan, Puerto Rico, and Port au Prince, Haiti.
Source: The New York Times
In 1981, American West Airlines, which would become part of American's history, commenced operations out of its base in Tempe, Arizona. The carrier was led by Doug Parker and eventually acquired US Airways in 2005 but kept the US Airways brand.
Source: American Airlines, Airways Magazine
Also in 1981, American opened its first base at Dallas/Fort Worth International Airport after moving its headquarters from New York City to Fort Worth, Texas in 1979.
Source: The New York Times
American's hub-and-spoke system grew from Dallas. In 1982, the carrier opened a base at Chicago O'Hare International Airport and returned to London with daily nonstop flights from Dallas/Fort Worth to Gatwick.
Source: Airline Geeks
American's regional system, American Eagle, was established in 1984. Today, the airline has three wholly-owned subsidiaries, including Envoy Air, Piedmont Airlines, and PSA Airlines.
Source: American Airlines
The carrier also delegates its regional flying to other contracted carriers, including Republic Airways, Mesa Airlines, and SkyWest Airlines.
Source: American Airlines
Towards the end of the 20th century, American continued to expand through route acquisitions and mergers.
In 1986, the carrier announced it would buy AirCal, a California-based carrier, for $225 million.
Source: Los Angeles Times
This gave American the West Coast routes needed to expand into a nationwide airline and made it a strong competitor in the lucrative Los Angeles-San Francisco flight corridor.
Source: Los Angeles Times
Shortly after, in 1990, American bought routes to Central and South America from defunct US-based Eastern Air Lines. The deal made American a dominant competitor in the region and helped it open its huge hub at Miami International Airport.
Source: American Airlines
Continuing eastward, American bought three Trans World Airlines routes to London Heathrow in 1991 for $445 million. This was the first time the carrier flew to Heathrow since the 1940s.
Source: Chicago Tribune, Dallas Morning News
In another merger in 1999, American purchased Reno Air for $124 million and integrated its network into its operation. However, it sold most of Reno Air's planes and eventually abandoned most of its Reno airport routes.
Source: The New York Times
American hit a snag in 1997 when the company's pilots went on strike over low wages. However, the strike was squashed by then-President Bill Clinton when he invoked the Railway Labor Act, forcing the crews to settle for lower-than-demanded pay.
Source: The New York Times
Fortunately, the company ended the century on a good note. In 1999, American, along with British Airways, Cathay Pacific Airways, now defunct Canadian Airlines, and Qantas founded the global alliance, Oneworld.
Source: Oneworld
Today, Oneworld consists of 14 airlines, though American has recently severed ties with Russia-based alliance member S7 Airlines over the country's invasion of Ukraine.
Source: Oneworld, Market Watch
By 2001, American was flying to most corners of the globe, including Europe, Asia, Latin America, the Caribbean, and South America. It continued to expand that year with the purchase of TWA and its base in St. Louis, Missouri.
Source: CNN
Through the early 2000s, American struggled to recover from financial losses after the 9/11 attacks, which involved two of the carriers' planes.
Source: American Airlines
It downsized its St. Louis base, eliminated its "More Room Throughout Coach" program, and ended three-class service on international flights.
Source: Chicago Tribune
Nevertheless, through its standardization, the company was able to also expand to new cities in Ireland, India, and China. Finally, in 2005, the company posted a quarterly profit for the first time in over four years.
Source: American Airlines
However, American hit another roadblock during the financial downturn of 2008. Nearly 1,000 flight attendants were furloughed, and 20 MD-80 aircraft were grounded.
Source: The New York Times
The company's MD-80 fleet faced scrutiny from the FAA in 2008 and 2009 over wire issues and reported maintenance lapses, like failure to repair cracks in the bulkhead, incorrectly drilled holes, and improper engine coatings.
Source: NBCNews, The San Diego Union Tribune
The carrier eventually retired its MD-80s in 2019, replacing them with the newer Boeing 737 and Airbus A320 families.
Source: American Airlines
Meanwhile, all of the company's A300 fleet was retired in 2009 and permanently stored in Roswell, New Mexico.
Source: World Airline News
The company continued to make cuts through 2010, effectively closing the St. Louis base and cutting nearly 700 jobs.
Source: St. Louis Business Journal
In 2011, AMR Corporation, American's then-parent company, filed Chapter 11 bankruptcy. The following year, the company started cutting flights due to grounded aircraft and pilot retirements.
Source: American Airlines
While American was working through bankruptcy, union contract negotiations prompted pilots to strike in 2012 over cuts to pay and benefits.
Source: CBS News
As part of the company's restructuring plan, it wanted to merge with another airline and eventually chose US Airways to create the new holding company, American Airlines Group.
Source: American Airlines
In 2013, the two completed their union to become the world's largest airline, a title American still maintains today.
Source: American Airlines
The merge kept the American Airlines brand but placed US Airways' CEO Doug Parker at the helm of the combined carrier.
Source: American Airlines
The union was met with lawsuits from the Department of Justice and several other airlines who believed the merger would decrease competition and increase airfare.
Source: American Airlines
However, all parties settled in November 2013 and allowed the merger to be finalized. The last US Airways branded flight operated on October 16, 2015.
Source: American Airlines
Under the leadership of Parker, American continued to expand. In 2015, it flew its first revenue flight of the Boeing 787 Dreamliner as part of the carrier's fleet renewal plan to improve the customer experience and its network.
Source: American Airlines
From 2018, the company's international network changed as it began experimenting with transatlantic service from its Philadelphia hub. This decreased operations out of New York's JFK airport where American operated Boeing 777 planes.
Source: Philadelphia Business Journal
However, in April 2021, American ramped up its JFK operation with the announcement of the powerful Northeast Alliance with JetBlue Airways.
Source: American Airlines
American and JetBlue's controversial alliance has worried competitor airlines and the Department of Justice, who say the partnership violates anti-trust laws.
Nevertheless, the duo has strengthened its presence in the Northeast, strategically scheduling flights and codesharing on international and domestic routes.
Like almost every other global carrier, American faced significant financial losses during the COVID-19 pandemic.
American Airlines just posted a record $8.9 billion annual loss
The company posted an $8.9 billion loss in 2020, furloughed 19,000 employees, retired over 100 aircraft, and was forced to rely on a government bailout to stay afloat.
Source: Insider, NPR, The Points Guy
While American had to retire dozens of planes, the decision made its fleet the youngest of any US legacy carrier — a silver lining.
Source: American Airlines
After trudging through nearly two years of COVID-19, the airline announced in December that Doug Parker was retiring. Robert Isom, American's current president, will replace Parker as the new CEO.
Source: The Washington Post
In an analysis shared with Forbes, Jefferies Financial Group summarized December's announcement as a "changing of the reigns but no change in strategy." The company suggested American is well-positioned "to take advantage of the post-pandemic recovery in travel."
Source: Forbes
Read the original article on Business Insider
