Legend Airlines: American Airlines Worst Nightmare?

Abstract

This case reviews the air battles American Airlines (AA) and Legend Airlines (LA) engaged in over the right to fly out of Love Field in Dallas, Texas, the home of American Airlines based at Dallas-Fort Worth International Airport.Legend Airlines was attacking the industry with a value proposition of quality flights and superior customer service with a laser focus on passengers who traveled frequently and paid top fares.The case is designed for classroom discussion and application to understand the economic consequences American Airlines faced with the up-scale entry of Legend Airlines into the heart of American Airlines market.