"American announced a 50 percent price cut on every seat on every route for flights through

September 13, provided tickets were bought by June 5. All major airlines matched

American's cuts, and within days, every major airline's inventory of seats for the entire

period was sold out."

a) As an industry analyst, critically comment on the decision taken by the American

Airlines in response to Northwest's limited promotion offer that provided the vacation

travellers a 50 percent price cut. Justify your comment in light of the U.S. airlines

Industry's health.