American Airlines (AAL) launched the first phase of their Entertainment On-Demand in 2011 which is an in-flight-streaming-video-product. A product that is very new and advanced inflight entertainment option for consumers on board its entire fleet of Boeing 767-200 aircrafts. AAL is the first North American airline to offer in-flight streaming, which enables the customers to wirelessly stream content such as movies and TV shows from an inflight library to select types of Wi-Fi-enabled laptops during flights. (Marketing Weekly News , 2011) AAL is the largest airline in the world and has made a strong wager on price matching. Yet it has suffered significant unit revenue declines for the past few quarters. Meanwhile, ultra-low cost carrier Spirit …show more content…
However, it's possible that unit revenue would be higher still if it had, instead, cut capacity in markets where it's facing the most competitive capacity growth in order to prop up fares. The problem is, while that strategy might have bolstered unit revenue in the short term, it would have created even bigger problems in the long run. If American Airlines were to retreat in every market where Southwest, Spirit, and their peers are expanding, those carriers would be even more profitable than they are now. Those excess profits would likely be reinvested in future capacity growth. (Levine-Weinberg, 2015) With the Major League Soccer season in the U.S. soon to be underway and the European soccer season just around the corner in the summer, AAL is giving "futbol" fans opportunities to win big when they visit www.AA.com/Soccer. American's promotional microsite is highlighting the airline's ongoing efforts to engage its loyal AAdvantage members who have a love for soccer. The promotions on the site are only available to AAdvantage members, and currently include an opportunity to win a trip for two to London for a VIP soccer experience. (Marketing Weekly News ,