Market Overview

American Airlines Changes Logo as Business Looks to Take Off

American Airlines, whose parent company AMR Corp., has been operating under Chapter 11 bankruptcy protection since November 2011, has updated its logo and livery in a move its CEO says is designed to reflect the changes at he company. The new design scheme maintains American's aluminum color throughout much of the outside of the plane, but the tail will now be painted in a modern looking American flag motif.

American's CEO Tom Horton said in an email to customers that “Our changes on the outside reflect how we're evolving on the inside. Our new logo and the refreshed exterior of our planes represent more than a change of symbol, but a symbol of change in our path to modernize and innovate."

The new design is the first in 40 years at the company. Earlier in the week, American announced a profit for the fourth quarter, suggesting that the company is heading in the right direction in its effort to turn around its operations.

American Airlines parent company has been in extended merger talks with US Airways (NYSE: LCC) about a deal which would create the world's largest airline operator. If an agreement is reached, the new company would be called American Airlines so there would be no need to repaint the updated fleet.

“Our new logo and livery are designed to reflect the passion for progress and the soaring spirit, which is uniquely American,” said Virasb Vahidi, American's Chief Commercial Officer, said in a news release. ”Our core colors — red, white and blue – have been updated to reflect a more vibrant and welcoming spirit. The new tail, with stripes flying proudly, is a bold reflection of American's origin and name. And our new flight symbol, an updated eagle, incorporates the many icons that people have come to associate with American, including the ‘A' and the star.”

The company also unveiled a number of other changes, including increased international flights, fully lay-flat business class seats with all-aisle access in the new Boeing 777-300ER aircraft, and fleet-wide in-seat entertainment systems.

The company also said that flight attendants will be given Galaxy Note tablets in order to immediately access customers' connecting gate information, loyalty status, and special preferences. Pilots will be given iPads which American said will help them fly more efficiently while reducing reliance on paper products.

In his comments, CEO Horton also made reference to the potential merger between American and US Airways. He said, "While we complete the evaluation of whether a merger can build on American's strengths, we remain steadfast in each step we take to renew our airline, a step we take with great respect for our name American."

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