American Airlines Case Questions

Segment the customers into economy, business and first class passengers. What are the needs of each customer segment?
What can we learn about customers' needs from the pricing schedules? Think about why all airlines charge the same price for first class service despite differentiation in the level of first class service across airlines. Then consider why coach and first class have different prices on the same airline.
What resources does American Airlines have and what resources does it lack (concentrate on resources that help satisfy customers' needs in the JFK-LAX market)?
How much market power does American Airlines have in each customer segment? In answering this question think about the effects of increased demand for vacation travel in the summer.
How much potential surplus is there in each customer segment?
Summarize the resulting strategic planning trade off.
How does the JFK:LAX route differ from other routes?

Search