US Airways — Merger or Acquisition (May 2013)
30 slides from US Airways's merger presentation, May 10, 2013
Slide 1: American Airlines Cargo Update April 24, 2013
American Airlines Cargo Update April 24, 2013
Slide 2: Important Information for Investors and Stockholders
Important Information for Investors and Stockholders 4/8/2013 1 Additional Information and Where To Find It This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. The proposed merger transaction between
Slide 3: Forward-Looking Statements
Forward-Looking Statements 4/8/2013 This document includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by words such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “estimate,
Slide 4: Agenda
Agenda 2 1. Leveraging the New American 2. American Airlines Cargo Foundations 3. Key Initiatives 4. Foundation Strengthening 5. American Airlines Cargo & US Airways Cargo 6. Organizational Chart
Slide 5: Leveraging The New American
Leveraging The New American
Slide 6: Strengthening Our Network
Strengthening Our Network Since 2012, American has started and/or announced a number of key new international wide-body services • MIA-BCN April 2012 • JFK-HND June 2012 • ORD-DUS April 2013 • DFW-ICN May 2013 • LAX-GRU Winter 2013 • ORD-GRU Summer 2014 4
Slide 7: Future Capacity Snapshot
Future Capacity Snapshot 5 777-300 Positions: 32 Average lbs: 59K 777-200 Positions: 25 Average lbs: 49K 763 Positions: 11 Average lbs: 29K 762 Positions: 8 Average lbs: 22K 787-9 Positions: 26* Average lbs: 48K* * Estimated
Slide 8: Aircraft Orders
Aircraft Orders 6 Orders Options B737 Family 102 40 B737 Family MAX 100 60 B777 Family 15 B787 Family 42 58 Total Boeing 259 158 A320 Family 130 85 A320 Family NEO 130 280 Total Airbus 260 365 Grand Total 519 523 Order Book as of 3/31/13 – See notes below As of March 31, 2013 Options include all opt
Slide 9: Investments In Service
Investments In Service 7 New cooler facilities • DFW cooler completed • JFK – expansion underway ? Expected end of May Product training – ExpediteTC • Operations Annual Training – Fall 2013 • Sales – Summer 2013 • Novo1 – ongoing online module training Interline transfers in key gateways
Slide 10: American Airlines Cargo Foundations
American Airlines Cargo Foundations
Slide 11: Foundations of American Airlines Cargo
Foundations of American Airlines Cargo • Product offering aligned with customer needs and wants • Service recognized with industry accolades • Relationship focused selling • Industry leading customer engagement in thought leadership & social media Customer Focus Operational Integrity • Operational p
Slide 12: Key Initiatives
Key Initiatives Operational Integrity Customer Focus AACargo.com RM Systems Location Tracking Outsourcing Short-Term Improve Margin and Competitive Parity Re-Accommodation Widebody Network Alliances Customer Experience Customer Metrics Domestic Expansion Medium-Term Differentiation Versus Competitor
Slide 13: Key Initiatives
Key Initiatives
Slide 14: Outsourcing & Domestic Expansion
Outsourcing & Domestic Expansion To be financially competitive, American Airlines decided to outsource non-hub cargo operations in 2012 Accomplished 4Q12 with minimal service disruptions New cost structure allows expansion of domestic cities: ? 1H13 ATL, SAN ? 2H13 LGA, IND, MCO, MSP, MSY ? 2014 CMH
Slide 15: Location Tracking
Location Tracking 13 Investing in shipment visibility Deploying hand-held devices to capture and transmit shipment status updates • Piece level data • Real-time data transmission • Sets platform for future enhancements • Roll-out at all US hubs, LHR & BOS
Slide 16: Revenue Management Initiatives
Revenue Management Initiatives American is currently working to overhaul and enhance our cargo revenue management systems This project is a multi-year effort, but when fully implemented, partners will benefit with: • Better capacity forecasts • Advanced ability to handle connecting freight • Better
Slide 17: New aacargo.com
New aacargo.com 15 Full website redesign underway • New robust technology platform • Enhanced online customer experience • New American Cargo branding Launch planned for late spring 2013 Refreshed platform will enable future improvements • Enhanced personalization • New features and functionality •
Slide 18: Re-accommodation
Re-accommodation Division-wide project to evaluate and enhance our refused freight re-accommodation practices Re-accommodate the vast majority of our freight within 24 hours and we are using data to identify opportunities to improve this even further • Recognize challenge • >85% re-accommodated with
Slide 19: Customer Metrics
Customer Metrics 17 Create service performance scorecard The project includes an objective measurement tool that is: • Easy to use, single source of information • Integrated into our work processes • Actionable & online • Time relevant & automated
Slide 20: Future Network Wide-body Flying
Future Network Wide-body Flying American’s wide-body network is critical to success of AA Cargo • Includes both our growing international network and connectivity between U.S. hubs We have wide body aircraft on the way and are still determining where they will be flown AA Cargo is working closely wi
Slide 21: Alliances
Alliances 19 Building strong cargo alliances is a long term strategy for Cargo To date, no effective Cargo alliances within the industry Customer Benefit
Slide 22: Foundation Strengthening
Foundation Strengthening
Slide 23: 2012 Initiatives
2012 Initiatives 21 Warehouse initiative underway to identify and implement best practices Customer touch point mapping illustrates key points of interaction and opportunities to improve Employee engagement survey just completed helping us identify our and what we want for our future.
Slide 24: Key Initiatives
Key Initiatives Operational Integrity Customer Focus AACargo.com RM Systems Location Tracking Outsourcing Short-Term Improve Margin and Competitive Parity Re-Accommodation Widebody Network Alliances Customer Experience Customer Metrics Domestic Expansion Medium-Term Differentiation Versus Competitor
Slide 25: American Airlines Cargo & US Airways Cargo
American Airlines Cargo & US Airways Cargo
Slide 26: American Airlines Cargo & US Airways Cargo
American Airlines Cargo & US Airways Cargo 24 AA US AA + US Cargo Revenue $670M $156M $826M Widebodies 121 26 147 Daily WB Ops 94 25 119 Int’l WB Markets 27 16 33 Combined cargo operations—estimated ~$800M(2) in annual revenue • Operations are largely in complementary markets • US Airways has no pre
Slide 27: American & US – World-Class Global Network
American & US – World-Class Global Network Asia/Pacific ??5 Destinations ??8 Routes Mexico ??20 Destinations ??42 Routes South America ??21 Destinations ??34 Routes Europe / Middle East ??21 Destinations ??52 Routes Caribbean ??32 Destinations ??93 Routes Central America ??10 Destinations ??22 Route
Slide 28: Organizational Chart
Organizational Chart
Slide 29: Cargo Organizational Chart
27 Kenji Hashimoto President Cargo Joe Reedy VP Sales and Marketing Kathey Poovey Exec Admin Trish Hollinrake VP Operations Andy Rubin VP Revenue Management Jessica Tyler Manager Continuous Improvement & Engagement Bruce Carter Manager Decision Support Mike Ryan Manager Financial Planning & Analysis
Slide 30: Thank You.
Thank You. 28