American Airlines

American Airlines appears in Spirit Airlines and the future of cheap flights as one of the legacy carriers that competed more directly with Spirit Airlines after adopting lower upfront ticket options. The episode groups American with Delta Air Lines and United Airlines in the “revenge of the legacy carriers” story.

American’s role in this source is to illustrate Basic Economy Copycat Strategy and Airline Loyalty Program Moat. A large network and loyalty ecosystem can make a cheap ticket from an incumbent more attractive than the same headline price from a smaller budget carrier.

Connections

• Spirit Airlines - budget carrier affected by incumbent imitation.
• Delta Air Lines and United Airlines - other legacy carriers in the source.
• Basic Economy Copycat Strategy, Airline Loyalty Program Moat, and Airline Market Price Discipline - concepts connected to American’s role.