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Problem Solution: Classic Airlines
The airline industry has been hit hard since the tragic events of September 11 and the attack on our nation. One of the world’s largest airlines, Classic Airlines has been negatively affected as well. Classic Airlines operates with a fleet of more than 375 jets while serving more than 240 cities nationwide. The airline manages more than 2,300 flights with its nearly 32,000 employees today.
Classic has managed to maintain profits over the past year with $8.7 billion in sales yet its share prices have decreased by 10% in the past year going from $33.20 to 28.93. Classic Airlines faces a dilemma with a continual decrease in employee morale and customer loyalty. As the economy continues to struggle Classic’s Board of Director have insisted on a 15% across-the-board cost reduction over the next 18 months. This strict order has also called for some changes to its frequent flier program to improve on the current ROI with a strong focus on increasing its membership and retaining current customer base and usage.
Describe the Situation
Issue and Opportunity Identification
Classic Airlines maybe be a leader in the industry but it’s currently suffering with its Classic’s Rewards Program decreasing membership over the years in addition to a 21% decrease in flights among its current membership.
Classic Airlines can turn its declining numbers into a marketing plan to revamp its rewards program along with its current plans to bring the airlines a step above its competitors through changes within its fleet. Classic can create a marketing campaign to meet the needs of its current Classic Rewards members and reach out to thos ...