American Airlines Group – Digital Transformation Strategies
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American Airlines Digital Transformation Strategies Report Overview
American Airlines is strengthening its focus on the use of key disruptive technologies to enhance its operations and provide better customer service. To do so, it is tapping into key disruptive technologies including AI, big data, blockchain, cloud, and fintech, among others. The annual ICT spending of American Airlines is estimated at $1.7 billion for 2023. a major share of this spending earmarked for software, hardware, network, and communications. American Airlines Group is a holding company. Its principal, fully-owned subsidiaries are American Airlines, Piedmont Airlines (Piedmont), PSA Airlines (PSA), and Envoy Aviation Group. AAG offers air transportation to passengers and cargo through its hubs in Chicago (Illinois US), Charlotte (North Carolina, US), Los Angeles (California, US), Dallas/Fort Worth (Texas, US), New York (New York, US), Miami (Florida, US), Philadelphia (Pennsylvania, US), Washington DC (US), and Phoenix (Arizona, US), and through partner gateways in Tokyo (Japan), Sydney (Australia), Seattle/Tacoma (Washington, US), Madrid (Spain), Doha (Qatar), and London (England), among others. AAG’s regional carriers operate under the American Eagle brand name. The American Eagle carriers include AAG’s fully-owned regional carriers namely Envoy Air, PSA Airlines, and Piedmont Airlines as well as third-party regional carriers including Air Wisconsin, Mesa Airlines, SkyWest Airlines, and Republic Airways.
Total ICT Spending 2023 | $1.7 billion |
ICT Spend by Function | Data center, Communications, Network, Application, End-User computing, Management, and Service desk |
ICT Spend by Channel | Internal development and maintenance, Technology vendors (direct), Local resellers, Telcos, ICT services providers/consulting firms, Specialist outsourcers, and Systems integrators |
External ICT Spend by Segment | Software (including cloud SaaS), Hardware (including cloud Iaas), ICT services, Consulting, Network and communications, and Others |
Technology Theme Focus | AI, big data, cloud, blockchain, fintech, blockchain, online travel, connectivity, virtual and augmented reality, machine learning, Ecommerce, and electric vehicles. |
American Airlines Digital Transformation Strategies report will act as a reference point to understand a company/competitor’s digital strategy. It will also help in understanding the digital preparedness of the company against its peers. Information included in these reports are sourced from a mix of our very own internal database and authentic secondary research links such as company’s annual report, presentations, press releases etc. The report covers overview of the company, its digital transformation strategies; technology focus areas; technology partnerships; technology introductions; technology investments and ICT spending among others.
Digital Transformation Strategies
In 2022, American Airlines has embedded a machine learning (ML) engine on top of its legacy gate assignment system to reduce the gate planning time from four hours to two-and-half minutes at its at Dallas-Fort Worth (Texas, US) and Charlotte (North Carolina, US) hubs. Built on Azure, the ML engine automated the labor-intensive and time-consuming process of matching arrived flights to their respective gates.
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American Airlines Technology Theme Focus
American Airlines is strengthening its focus on the use of key disruptive technologies to enhance its operations and provide better customer service. To do so, it is tapping into key disruptive technologies including AI, big data, blockchain, cloud, and fintech, among others.
American Airlines Technology Focus
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American Airlines Technology Initiatives
American Airlines has been involved in several strategic technology partnerships and collaborations, technology roll outs and technology investments over the past few years. For instance, in 2022, American Airlines partnered with Microsoft to use the Microsoft Azure cloud platform for running its airline applications and critical workloads.
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American Airlines ICT Spend by Function
- Data center
- Communications
- Network
- Applications
- End-user computing
- Management
- ICT Service desk
American Airlines ICT Spend by Function, 2023 (%)
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American Airlines ICT Spend by Channel
- Internal development and maintenance
- Technology vendors (direct)
- Local resellers
- Telcos
- ICT services providers/consulting firms
- Specialist outsourcers
- Systems integrators
American Airlines ICT Spend by Channel, 2023 (%)
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American Airlines External ICT Spend by Segment
- Software (including Cloud SaaS)
- Hardware (including Cloud IaaS)
- ICT services
- Consulting
- Network and communications
- Others
American Airlines External ICT Spend by Segment, 2023 (%)
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Scope
This report provides:
- Insight into American Airlines’ technology activities.
- Overview of technology initiatives covering partnerships, technology introductions, and technology investments.
- Insights on each technology initiative including technology theme, objective, and benefits.
- Details of estimated ICT budgets.
Reasons to Buy
- Gain insights into American Airlines’ technology operations.
- Gain insights into its technology strategies and innovation initiatives.
- Gain insights into its technology themes under focus.
- Gain insights into its various partnerships, technology introductions and technology investments.
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Table of Contents
Frequently asked questions
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What was the total ICT spending of American Airlines in 2023?
The annual ICT spending of American Airlines was estimated at $1.7 billion in 2023.
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Which was the leading ICT spending category by function for American Airlines?
Network was the leading ICT spending category by function for American Airlines in 2023.
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Which was the leading ICT spending category by channel for American Airlines?
Internal development and maintenance was the leading ICT spending category by channel for American Airlines in 2023.
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Which was the leading ICT spending category by segment for American Airlines?
Software (including cloud SaaS) was the leading ICT spending category by segment for American Airlines in 2023.
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What are the key technology themes in focus for American Airlines?
The key technological theme in focus for American Airlines are AI, big data, blockchain, cloud, fintech, blockchain, online travel, connectivity, virtual and augmented reality, machine learning, Ecommerce, and electric vehicles.
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