Airline Oil Price

Case Walkthrough Video

Case Walkthrough Notes

Case Study Prompt

You are the CEO of American Airlines. You were just informed that the price of oil has dropped to nearly $0. Basically, you can acquire oil as easily as you could water. (Assume that there are no significant costs in transporting the oil, acquiring it, etc.)

It’s important to know that competitor airlines have access to the same low cost fuel.

Who are the first 3 people you would call within your organization as the CEO?

Explain your motivations for contacting each of these people and what you hope to accomplish just having received this information about the price of oil.

Case Study Overview

As CEO of a large airline, you’ve just learned that the price of oil has plummeted, creating a massive opportunity for your company. In this McKinsey case study, it’s your job to action on this news and contact some key people within the organization. Who are you calling first, and why?

You can use the Profitability Framework to solve this case study, but because of the non-traditional question, you will want to use a non-traditional approach to solve the case. The top interview candidates build a custom framework using a blend of frameworks and their business acumen.

This case has no math diagrams. The qualitative difficulty is 3 out of 4. You could expect to see this case in a McKinsey first or second round interview.

McKinsey Interview Pointers

What does McKinsey look for in its case interview candidates? The ability to problem-solve and clearly communicate your process and recommendations.

In this case, try to find 1 area to improve upon.

For out-loud practice with an expert, book an hour with an ex-MBB coach.