Classic Airlines Solutions

Classic Airline Marketing Solutions

Wilmott Livingston

University of Phoenix

MKT/471

Mr. Mancini

December 2, 2010

Classic Airline Solutions

  Technology and globalization have lead to fierce competition in every industry including the airline industry. To avoid bankruptcy and survive the competition, companies must constantly adopt changes or be forced into it by competition and events.   Classic Airlines is operating in an industry that faces fierce competition, as a result, the management must reinvent the company so it will be able to compete with its competitors. In order for Classic Airline to maintain and even improve on its current position of fifth largest airline with a fleet of more than 375 jets, operating in 240 cities with more than 2300 flights daily, and 32,000 employees, the company must make some difficult decisions.

Last year, Classic airlines was profitable even though it witnessed a 10% decrease in share prices, resulting from increased scrutiny, low employee’s morale, declining customer’s loyalty evident by a 19% decrease in the number of their reward members and a 21% decrease in flights per remaining member (Classic Airlines, 2007). The events of 09/11also affected the airline industry thus leading to a restructure whereby the company’s Board of Directors mandated a 15% cost reduction measures across-the-board for 18 months (Classic, 2007).

Classic Airline should implement the 9-Step problem Solving Model, this will give the company opportunities to solve some of their problems.  The 9-Step problem solving model is a valuable tool used by major corporations, it identifies the problem, plans the solutions, display ethical dilemmas, and the measures it may need to correct ensuing issues.

9-step process includes: First step) Identify the problem-Knowing what the problem is.   Second step) Define the problem- characterize its capacity.   Third step) Illustrate the end-state goals- avenues used to measuring...