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The airlines fare war

Syndicate 6

Habibie vakunala | Zara Zentira | Shella Deviany | Tegar Ditya | H

Background
In 1992, America's biggest airline
16 cost structures
simplified fare structure

4 cost structures
lower prices

customer

American Airlines

increase in the number of air passengers

Americans new fare structure Price war airline Lower price

environments impact

Other airlines do not want to raise prices

The low fares failed to cover the industry average cost Company Pessenger were simply unwilling to pay higher impact fares weakening economic situation (WTC tragedy)

causes
U.S airlines seemed to be in a prisoners dilema Unable to coorporate Faced heavy losses

Pinjaman untuk industri penerbangan nasional, untuk mencegah kebangkrutan

Perusahaan nasional harus menentukan strategy dominannya


Bekerjasama dalam strategi pnentuan tarif dan strategy non harga

Solution

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