External Threats: 1) The negative effects of September 11 2001 - The threat of terrorism. American Airlines� revenues for the first quarter of 2002, showed a decline of $624 million from the first quarter of 2001 and the net income was a negative of $575 million, whereas the net income for the prior year was a negative of $43 million. 2) Weak Economy � economic slowdown since September 11 2001. The value of Dollar has fallen. As a result, inflation has risen and Americans do not travel abroad as much as they did when the value of Dollar was stronger. 3) Decline in business and vacation air travel. This was a significant direct consequence of September 11 2001 terrorism attacks, but it has been prolonged due to other external factors and most airlines� inefficient internal policies (such as the decrease of flights, closure of travel centres and diminution of service standards during the flights � food and drink) 4) Increased airfare price competition. 5) American Airlines� two major hub operation competitors: Delta Air Lines and United Airlines. Delta Air Lines ha......

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