Airlines announced a new round of fare discounts

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Reference no: EM13742050

Delta and Southwest Airlines announced a new round of fare discounts. In response Sangita Woerner, Vice President of Marketing at Alaska Airlines, said, “It’s unlikely that we will match these fare reductions because we do not anticipate any negative impact on our revenue.” Using some aspects of the models that we developed so far, how would you show that Ms. Woerner can be correct? That is, it is in the benefit of Alaska Airlines not to match the fare reductions of its competitors. Limit your answer to no more than three sentences.

Reference no: EM13742050

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