Operating in the southwestern states, lancer airlines hopes to avoid entering the price war that currently is taking place between several airlines on the east coast. the best strategy to avoid severe price competition is to:

Provide frequent travellers the added value of special fringe benefits.

Explanation:

According to other sources, these are the possible options for this question:

Reduce flights and in-flight services, and layoff employees. Provide frequent travelers the added value of special fringe benefits. Cut costs and services in order to maintain profit margins. Determine the breakeven price and charge slightly more than that.

The best strategy is to provide frequent travelers the added value of special fringe benefits. This option is likely to attract more customers, and particularly customers that will fly frequently. Moreover, the option will have no negative impact on the prices of your flight tickets. Finally, by using this stratgey, you can avoid the negative outcomes of the other options (such as reducing flights, reducing in-flight services, laying off employees, cutting services or charging more).

In my opinion, it is best to keep prices the same, but offer your passengers more amenities.