Elevator Pitch

Elevator Pitch

Low-cost flights are essential to American Airlines Group Inc. because of the current market conditions. The industry’s recovery from the pandemic is gradually occurring. Regardless, its slow pace is affecting the industry players’ profitability significantly. American Airlines needs to provide the best service to compete with other low-cost carriers that are likely to gain more clients due to their fair prices. Including this package will allow the page to retain a significant volume of passengers to sustain the cost of doing business.

How it fits

Cash preservation is one of the carrier’s strategies. The main avenue towards this end is the reduction of operation costs. Reducing human resource costs through deliberate turnover is part of the proposed package. Reducing the labor costs will allow the carrier to recover from the pandemic’s effects with less pressure. It will also be able to reposition itself in the market strategically. At the same time, the savings will be diverted towards continuous servicing of debts, thus eliminating any potential dangers to the business.

In addition, different product segments were created to include primary and premium economies. Providing low-cost flights is part of the basic economy that was visualized among the new product segments. The carrier is committed to providing its services to global travelers without any discrimination. Therefore, this commitment increases its capability to handle the proposed service. The low-cost flights are within the carrier’s capability because they have posted gradual revenue increments. They are also capable of pushing the organization further toward its vision statement and the primary purpose of existence (American Airlines, 2022).

 Justification

The airline had gross revenue of USD 29,882,000 by the end of 2021. This revenue was more than the previous year and less than the pre-pandemic years. Consequently, it shows a significant recovery of the airline’s operations. Offering low-cost flights to cater to the basic economy will increase the volume of flights, which will lead to a further increment of the revenue that the airline realizes. The expectation is that the payment will return to the pre-pandemic amount of at least USD 45,000,000 (Yahoo, 2022).

Enhancing the Mission

American Airlines Group is “committed to provide every citizen of the world with the best service of the air travel to the extensive selection of destination possible” (American Airlines, 2022). This mission statement is ambitious because the company targets every individual who chooses to travel by air. However, it provides a perfect resonance to the new low-cost flights that are proposed. The low-cost flights will enable the airline to cater to a broader market, as its mission statement predicts. Global citizens would appreciate the significant variations in products. Such interpretation of products demands different prices to suit travelers’ varying financial power and disposable income. The flexibility that clients will enjoy once the new product is designed will be more comprehensive. The customer experience will be enhanced and enable the airline to expand its market share significantly (Leff, 2019). In addition, American Airlines intends to achieve global presence and affordability. The process of reaching every traveler can only be successful if the carrier creates different product lines for different segments. Such products include low-cost flights that are expected to cater to the introductory economy class of travelers. Overall, the profitability of the carrier is expected to grow significantly.

References

American Airlines. (2022). About Us. Retrieved from American Airlines: https://www.aa.com/i18n/customer-service/about-us/about-us.jsp?anchorEvent=false&from=footer

Leff, G. (2019). American Airlines Strategic Objectives for 2019 as Shared With Employees.

Yahoo. (2022). American Airlines Group Inc. (AAL). Retrieved from Yahoo Finance: https://finance.yahoo.com/quote/AAL/financials?p=AAL

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It’s the moment of truth: the first step in introducing the new project to senior management. The senior management team is located in another state and wants to hear your pitch remotely. They have given you five minutes to deliver your pitch during a leadership meeting.

Elevator Pitch

Prompt
Create and record an elevator pitch for your new product or service using your project outline as a guide. In your pitch, be sure to include the following:

Introduction: Introduce your product or service.
How it fits: Describe how the product or service fits into the overall strategic plan and mission of the company.
Speculate about whether the product or service fits within the capabilities of the company based on your research from previous modules (use resources like Marketline.com, Yahoo Finance, and investor relations pages within the company’s website).
Justification: Justify your suggestion based on the numbers.
What will be the revenue gain?
Speculate on an ROI that justifies the project for investors and senior management.
Enhancing the mission: Explain how the new product or service improves the company’s overall mission.
Does it project profitability?
Support your position with information and data from the company’s 10K (use resources like Marketline.com, Yahoo Finance, and investor relations pages within the company’s website).
Guidelines for Submission
To complete this project, you must submit the following:

A 3- to 5-minute elevator pitch video or audio recording (mp3) as well as an outline and references page in Word using double spacing, one-inch margins, and 12-point Times New Roman. Sources should be cited according to APA style.
OR

A 1- to 3-page elevator pitch script in a Word document using double spacing, one-inch margins, and 12-point Times New Roman font. Sources should be cited according to APA style.