Classic Airlines Marketing Solution

Essay by maulwoofA-, March 2010

download word file, 13 pages 0.0

Classic Airlines, after 25 years of operations, ranked the fifth largest airline with more than 2,300 flights a day and 32,000 employees. Share price has dropped 10% in the past year and their Rewards Program, popular with their most loyal customers, has dwindled 19%, while overall employee morale and customer satisfaction has slipped to all time lows. These are coupled with a drop in customer loyalty as illustrated by the reduced number of rewards members and declining flight reservations from all of the Classic client database. Classic has implemented a 15% cost reduction plan over 18 months, further reducing the resources available to bolster Classics decreasing revenues and avoid future financial difficulties. These drastic cuts were implemented as a post 9/11 measure with hopes of renewed flight interest by all travalers. (Classic Airlines, 2007).

Internal PressuresThere are now many internal pressures that are contributing to Classic Airline's current business success, or more accurately stated, the failure of success that was once present.

The most easily identified internal problem is the declining employee morale and general lack of support for the company in it's current operational status. The employees are disheartened by the fact that Classic Air's attitude toward the clients that they must communicate with on a daily basis has deteriorated to such a low level, that they are embarrased and having difficulty supporting the recent changes. These recent trends in weak and inadequate customer support create a real problem for the all the operator's when explaining on the phone that there is very few options of any significance available to them for their long term commitment to Classic Air as dedicated customers and frequent flyers. Classic Air's employees, from the reservation operators to management, must be able to believe in Classic. Recently, the inplementation of the automated customer relations...