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Problem Solution: Classic Airlines
Classic Airlines is one of the world’s leading airlines and commands a fleet of more 375 jets that serve 240 cities with more than 2300 daily flights. In the 25 years since its inception, Classic has grown to an organization of 32,000 employees, and last year, it earned $10 million on $8.7 billion in sales (Scenario, 2008). Classic Airlines is now faced with decreasing sales resulting from customers having concern flying with the high costs and the 911 attack.
Classic Airlines is facing troubled times with customer satisfaction and union threats. The union basically demanded that Classic Airlines leave the Union out of the marketing tactics. As they continue to strive for a better Classic Rewards Program for frequent flyers, they are constantly faced with the challenges of developing the most effective program without reducing the price of ticket sales. Classic Airlines already reduced the price of tickets and the tactic did not work.
This paper will discuss certain key players at Classic Airlines and its new product solution implementation to provide the reader with an understanding of what is happening to Classic Airlines and the urgency of an effective rewards program to avoid possible bankruptcy.
Kevin Boyle, CMO, seeks guidance from an old friend that he feels will solve Classic Airlines’ problem with drop in sales and customer satisfaction. This paper also discusses the Union’s view on the new program and its impact on the Union. In the interim, Classic Airlines continues to market their current product to increase sales. Classic Airlines will begin this journey of product development and decision making by defining the problems, setting the researc ...