American Airlines, like most other airlines, operates with both a hierarchical and a functional organizational structure whereby management is organized from the top down, with certain specialized departments or divisions based on the different functions of the business.
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The typical organizational structure of an airline includes operations, maintenance, marketing, and finance divisions. The operations division manages the day-to-day activities of the airline, overseeing the pilots and flight attendants, the flight dispatchers, flight scheduling, and ground crews.
The airline industry has three key characteristics. First, the demand for air services, whether for passengers or freight, is a derived demand.Second, the product is very homogenous and, third, it cannot be stored.
The aerospace industry encompasses the manufacture of a wide range of aircraft and spacecraft products (including passenger and military aeroplanes, helicopters, and gliders, as well as spacecraft, launch vehicles, satellites, and other space-related items).