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American Airlines Marketing cases AMERICAN AIRLINES 1 Issues 2 American Airlines objectives 3 The airline industry 4 Market 5 Consumer needs 6 Brand image 7 Distribution system 8 Pricing 9 Marketing related strategies 10 Assumptions and risks 1-Issues The main issue of this case is the lack of profits of the airline industry an industry that should be more than profitable due to the large amount of customers the necessity of using airlines services and the high prices charged by most of these airlines What we are going to deal with is why is this happening And how is American airlines dealing with this problem To be able to discuss how American airlines wants to regain profitability we must identify and analyse different issues such as the companys background the airline industry as a whole the demand for air travel the marketing strategies the distribution systems pricing policies etc 2-American Airlines objectives American Airlines prime objective is to bring back value to air travel through stimulating business travel lowering prices etc So in other words American Airlines main objective is to become as profitable as possible To understand better the companys objectives we first have to focus on the companys background this way we will find out why the airline is not as profitable as it should and what kind of a change is needed American Airlines had been the largest airline in the United States for a long time In 1990 and 1991 due to a recession and the Gulf War demand for air travel dropped drastically for this reason fare wars started and all the airlines incurred massive losses 3-The Airline industry and the market The airline industry is large specially in the United States mainly due to the Deregulation of the industry In 1938 the Civil Aeronautics Board was created to control the growth of the air transportation industry This board had the authority to control entry exit prices and methods
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