Diversity at American Airlines : An Integrated Business Strategy Denise Lynn Vice President, Diversity and Leadership Strategies Colloquium on Global Diversity

3 American Airlines: a Tradition of Marketing to Women

4 Our goal:  Grow loyalty among our increasingly diverse customer and employee base  Develop and implement a diversity strategy directly connected to our business objectives Our approach:  A holistic approach that integrates traditional diversity initiatives with market goals using cross-functional teams and processes Our results:  Enhanced understanding of diverse employees and customers  Organizational diversity strategies aligned to diverse market business goals  Diverse teams and interdepartmental partnerships that require employees to think differently about how work gets done at American Airlines Diversity at American Airlines DRAFT

5 The First Step: Re-define the Diversity “Conversation” Compliance Protect the Brand Enhance Brand Equity  © 2005 Mill Square Group, Inc. All rights reserved.

6 Next: Inventory All Existing Assets that Matter to Diverse Customers and Employees Diversity Business Strategy Marketing Human Resources Corporate Citizenship Suppliers Products/Channels Do our products appeal to diverse customers? Can diverse customers easily purchase our products and use our services? Do the demographics of our supplier base reflect those of our customers and employees? Do diverse customers see our messages in the media they use? Are those messages targeted, relevant and appealing to them? Do we support the communities and organizations that our employees and customers care about? Is this a great place for diverse employees to have successful careers? Does our workforce reflect the diversity of our customers and communities?  © 2005 Mill Square Group, Inc. All rights reserved.

7 American Airlines Infrastructure for Success: Defined Roles and Senior Executive Participation Executive Steering Committee Executive Sponsors Mar Com, HR Marketing Agency Support Human Resources Diversity Strategies

8 Making Diversity An Integral Business Strategy A Few Examples… Diverse Segment Business Initiatives Marketing Human Resources Community Suppliers Products/Channels External Customer Advisory Councils AA.com/women and AA.com/rainbow Steve Harvey partnership Bi-Lingual Hispanic Marketing Campaign BusinessExtrAA for diverse small businesses, non-profits Segment –specific AA Vacations promotions ERG participation in Segment Marketing Plan development Diversity Strategies JLT Susan G Komen cross- segment partnership Sponsorships of nonprofits that serve diverse populations Expanded Tier 1 and 2 supplier diversity goals Inclusion of LGBT-owned businesses in diverse supplier network  © 2005 Mill Square Group, Inc. All rights reserved.

9 Business Results at American Airlines  Active employee engagement and buy-in to diversity – Participation in business decisions (ERGs)  More inclusive marketing for all our customers – Diversity perspective starting to influence other marketing decisions  Faster speed-to-market of new ideas and programs – Employees working in cross-functional teams instead of in “silos:” this breaks down barriers so work get done more quickly  Better loyalty with increasingly diverse employees and customers – Differentiating American Airlines in the industry Greater understanding of diversity as a key business imperative

10 Benefits to our Customers: Being Relevant In Every Customer Interaction Marketing Key Travel Influencers Airport, On-Board & Reservation Center Community Presence AA.com & Online Experience Products & Services AA Diverse Customer Experience  © 2005 Mill Square Group, Inc. All rights reserved.

11 Moving Forward: Challenges and Obstacles  Measuring results – Hard to establish metrics and baselines – Thinking about diversity in quantitative vs. qualitative ways  Budget concerns – Difficult to sell an increase in the marketing budget – Territory issues  Visibility – How to get attention for the importance of diversity in a crowded internal marketplace