American Airlines, Inc.: Revenue Management

American Airlines, Inc.: Revenue Management

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Publication Date:
July 31, 1989

Industry:
Aerospace & Defense

Source:
Harvard Business School

Begins with a description of the elements of post-deregulation competition in the commercial airline industry. This should facilitate a discussion of the use of quantitative methods to support a broad range of tactical and strategic airline decisions. The principal thrust of the case is on revenue management. First, there is a description of the principal pricing concepts, followed by two examples of pricing decisions facing American. Next, there is a discussion of the basic yield management concepts and comments on the challenges in their implementation. Finally, there is a brief write-up on the structure and future of the revenue management organization.

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American Airlines, Inc.: Revenue Management

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