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 the deregulation of US national airline industry. American expected that the new pricing structure would benefit consumers and restore profitability for both American and the industry as a whole. The critical question raised is: Would American's bold initiative work? The problems encountered in exercising price leadership to change industrial practice from a complex structure of differential pricing and promotions to a simplified structure of daily low prices. American Airlines Marketing Cases AMERICAN AIRLINES1. Problems 2. Objectives of American Airlines 3. Airline Industry 4. Market 5. Consumer Needs 6. Brand Image 7. Distribution System 8. Pricing 9. Marketing Strategies 10. Assumptions and Risks1- Problems The main issue of this case it is the lack of profits of the airline industry, an industry that should be more than profitable due to the large number of customers, the need to use airline services and the high prices charged by most of these airlines. What we will be concerned with is: why is this happening? And how are American airlines addressing this problem? In order to discuss how American airlines want to regain profitability, we need to identify and analyze several issues such as the background of the company, the airline industry as a whole, the demand for air travel, marketing strategies, distribution systems, pricing policies etc.2- Objectives of American Airlines The main objective of American Airlines is to restore value to air travel by stimulating business travel, lowering prices, etc. So in other words America... middle of paper... .its competitors. -Hubbing: With hubbing, flights from different origins on the spokes of the network are funneled through an intermediate location, where they change planes and are redirected to the final destination. This way the airline can serve more locations with fewer planes. -Frequent Flyer Programs: These programs offer discounts or bonuses to frequent travelers. The value of the bonuses increases as the miles flown increase, the bonuses can take various forms such as fare reductions, upgrades to better classes or even free tickets.10- Hypotheses and risks All these strategies in my opinion are brilliant, the only one The risk that I see it's in hubbing, customers sometimes don't want to spend additional time changing planes, there is the risk of missing connecting planes, luggage could get lost, etc. In the rest of the strategies I don't see any risk, what would happen? never.