Publications
Publications
- October 1992 (Revised June 1994)
- HBS Case Collection
American Airlines, Inc.: Proposal for a Three-Class Transcon Service
Abstract
American Airlines, Inc., the largest airline in the United States, is considering a proposal to enhance its flagship New York JFK - Los Angeles transcontinental service from a two-class (first and coach) to a three-class (first, business, and coach) product. The proposal was originated by the marketing group, and is motivated by considerations of competition, freqent-flyer upgrade policies, product consistency, and demand stimulation (for domestic business-class travel). While the new product would be consistent with American's international product, it would be inconsistent with the rest of the domestic product. More important, it would require an expensive aircraft reconfiguration and the isolation of the JFK-LAX fleet from the rest of American's fleet--at a considerable loss of flexibility.
Keywords
Organizational Change and Adaptation; Marketing Strategy; Air Transportation Industry; United States
Citation
Dhebar, Anirudh S. "American Airlines, Inc.: Proposal for a Three-Class Transcon Service." Harvard Business School Case 593-042, October 1992. (Revised June 1994.)