1. What are American's major strategic and tactical decisions?

2. Refer to the discussion of the Chicago-West Coast pricing decision in the case.
Should American counter Continental's $159 fare with a relativelyunrestricted discount fare on the nonstop Chicago West Coast flights? Why or
why not?

3. Refer to the discussion of the New York-San Juan pricing decision in the case.
What additional information should Doug Santoni collect to decide on a
response to Eastern's pricing initiative? (Dont give me vague generalities on
elasticity and consumer demand be more specific on how Santoni should
make the decision.)

4. Consider the example on p.5 of the case. An aircraft has 100 seats, and there
are two types of fares: full ($499) and discount ($99). While there is unlimited
demand for discount fares, demand for full fares is estimated to be anywhere
between 10 and 30 (assume a uniform distribution). How many seats should
be protected for full fare passengers? (In particular, how would you go about
determining the answer? And dont state that the number of reserved seats
can be adjusted over time give me one number assuming that it cant be
changed.)