American Eagle Marketing - Research Paper Example

Airline operation is dependent upon many related entities; the primary ones are airport authorities which allow the airlines to carry out the operation at the particular station. The catering service providers along with aircraft equipment manufacturers and suppliers also play contributory role in the operation. In case of American Eagle, it is quite possible that the flight frequency is restricted at a particular station. The aircraft manufacturer may also enforce strict conditions for aircraft maintenance.

Customer’s Bargaining PowerAviation industry is strongly characterized by time based fares which enable the customers to fly cheap if they plan their journey well ahead of time. The threat of customer’s bargaining power is limited as the pricing is purely online and regulated by International Civil Aviation Organization (ICAO).Threat of SubstituteIt is a serious point of consideration for American Eagle as many low cost carriers can threat its profitability. It goes without saying that there is no substitute of air travel in the aspect of time and ease.

The drawback can be in terms of connections to multiple stations and the facilities provided during transit if direct flight is not operated.Threat of New EntrantAs mentioned earlier, entry of new low cost carriers can threaten the business of American Eagle. The low cost carrier saves cost on catering, in flight entertainment and baggage limit. They focus on the basic requirement of air travel which is quick transportation of individuals and baggage.