Publications
Publications
- November 2014
- HBS Case Collection
American Airlines in 2011
By: Willy Shih
Abstract
The American Airlines in 2011 case set was developed to provide a setting for the comparative analysis of two very different business models in the U.S. domestic airline industry—the network carrier and the low cost carrier (LCC). These models offer very different value propositions. Firms allocate resources into distinctively different processes, and they earn returns using parallel but different profit models. Yet while most scholars view the LCC model as disruptive, the two different models have been able to co-exist for over forty years, albeit with substantial evolution. By unpacking how one of the major network carriers was able to evolve its model successfully for a such long time before industry structural changes necessitated yet another major overhaul, the cases seek to give students insights into how the different business models were established, how competitive forces have driven their evolution, and the importance of constantly evolving and tuning a firm's model.
Keywords
American Airlines; Network Carrier; Low-cost Carrier; LCC; Air Transportation; Business Model; Restructuring; Adaptation; Competitive Strategy; Competitive Advantage; Corporate Strategy; Transportation Industry; United States
Citation
Shih, Willy. "American Airlines in 2011." Harvard Business School Teaching Note 615-012, November 2014.
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