American Airlines, Inc., the largest airline in the United States is considering a proposal for its flagship New York JFK to improve – Los Angeles transcontinental service from a two-class (first and coach) in a three-class (first, business, and Coach) product. The proposal was created by the marketing group, and is motivated by considerations of competition, freqent flyer upgrade policies, product consistency and the stimulation of demand (for domestic business-class travel). While the new product where … Read more »

American Airlines, Inc., the largest airline in the United States is considering a proposal for its flagship New York JFK to improve – Los Angeles transcontinental service from a two-class (first and coach) in a three-class (first, business, and Coach) product. The proposal was created by the marketing group, and is motivated by considerations of competition, freqent flyer upgrade policies, product consistency and the stimulation of demand (for domestic business-class travel). While the new product would be in line with international product-American, it would not be in line with the rest of the gross domestic product. More importantly, it would be an expensive aircraft reconfiguration and isolation of the JFK-LAX fleet from the rest of the American fleet – to a significant loss of flexibility
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Anirudh Dhebar
Source: Harvard Business School
19 pages.
Publication Date: Oct 13, 1992. Prod #: 593042-PDF-ENG
American Airlines, Inc.: Proposal for a Three-Class Transcon Service HBR case solution

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