Case Study: Major US Airline decides NOT to Charge Additional Fees

A major U.S. airline was facing a situation where opportunities to extend the existing strategy were limited, coupled with an increasing cost structure due to competition, commodity prices, and acquisition integration activities. The airline began to explore several options to generate new profits through ancillary products or changes to existing policies and was under intense pressure from board members, Wall Street and various analysts to do so.

PwC, the world’s second largest professional services network, was employed by the Airline to model the predicted impact of the client’s ticket market share and company brand sentiment after introducing new products or policy changes.

Utilizing AnyLogic software, PwC built the Experience Navigator, an agent-based consumer behavior model of multiple airline markets which included client competition, the process of consumers making choices and a relatively complete representation of the ecosystem in each market.

Read the case study and watch the presentation by Mark Paich from PwC to find out why the Airline decided NOT to charge additional fees regardless of pressure from stake holders and in contrast to industry trends.