Strategy Innovation Proposal #2 1 7 Strategy Innovation Yearly, the airline industry makes lucrative, financial decisions as they pertain to collecting profitable assets for the business. As of 1930, more than 30 airlines have exercised the option of merging with another; some have succeeded, some have failed, particularly on a financial aspect. Running a business requires time, money, and of course the knowledge of running a business. Some people start off small; presenting a business in which focuses on a one area at a time. Eventually, that business can expand by globalizing its brand from state-to-state, country-to-country, or wherever their product will sell. Assessing the situation: One airline in particular is American Airlines; once known as American Airways, “now American Airlines”, was founded in 1930. With an operating income of more than 300 million dollars, and total revenue of 22 billion, they are the United States number one operating airline. Although final mergers pertaining to complete destination routes, and plane makeovers, American Airlines, and US Airways will create a monstrous foundation to keep the number one spot atop the airline rankings. Assessing the situation, an unlimited amount of information is available, and discussion amongst the two airlines merging is viewable via the company’s web site, or via an Internet source. As a strategist, assessing any given situation can be tricky; mainly because of the pros and cons presented to the business. American Airlines and US Airways operated under different methods of intelligence. These methods pertain to the airlines focusing on demographics; demographics are quantifiable statistics of a given population. As both airlines initially serviced multiple countries, unwanted problems can arise at any time. These unwanted problems are usually not seen by the innovators because an innovator cannot be everywhere at the same time. Identifying of the problem and opportunity: Identifying unwanted situations can only upgrade the opportunities for the airline as a whole. Merging US Airways with American Airlines will bring the fleet size up to more than 800 aircrafts. Some people may take notice of the 800 aircrafts as a positive statement to the business, whereas others who travel for a living may beg to differ; this is mentioned because of air traffic. A fact in which some people may not know is; the owners of an airline company is not guaranteed air slots or space, all proposals must be discussed and brought to the attention the Federal Aviation Administration (FAA). Conjoining two airlines and clogging the friendly skies with airplanes is sufficiently unsafe. A good aspect and opportunity of the merger is the notion of the airline having what I like to call, “cap space”. In my own definition, cap space will allow the airline to have a certain amount of aircrafts on standby incase of mechanical or passenger overbooked situations. Creative concept development: C.