Publications
Publications
- August 1993 (Revised May 1994)
- HBS Case Collection
American Airlines' Value Pricing (A)
By: Alvin J. Silk
Abstract
In April 1992, American Airlines launched "Value Pricing" -- a radical simplification of the complex pricing structure that had evolved over more than a decade following deregulation of the U.S. domestic airline industry. American expected that the new pricing structure would benefit consumers and restore profitability to both American and the industry as a whole. The critical issue raised is: Would American's bold initiative work?
Keywords
Price; Marketing Channels; Consumer Behavior; Performance Expectations; Value Creation; Aerospace Industry
Citation
Silk, Alvin J. "American Airlines' Value Pricing (A)." Harvard Business School Case 594-001, August 1993. (Revised May 1994.)