1. What are American Airlines' major strategic and tactical decisions?
2. Pricing:
   1. Refer to the discussion of the Chicago-West Coast pricing decision in the case. Should American counter Continental's $159 fare with a relatively-unrestricted discount fare on the nonstop Chicago-West Coast flight?
   2. Refer to the discussion of the New York-San Juan pricing decision the case. What additional information should Doug Santoni collect to decide on a response to Eastern's pricing initiative? Is the pricing decision in this case more or less complicated than part (a)?
3. Consider the example on page 5 of the case. An aircraft has 100 seats, and there are two types of fares: full ($499) ad discount ($99). While there is unlimited demand for discount fares, demand for full fares is estimated to be normally distributed with mean 20 and standard deviation 5.
   1. How many seats should be protected for full-fare passengers?
   2. Forecasting has determined that some low-fare passengers are willing to purchase full-fare tickets when the low-fare tickets are sold out. In this case, should you adjust the protection level from (a) upward or downward? Please explain your rationale.