Classic Airlines Problem Definition Paper

Running head: CLASSIC AIRLINES PROBLEM DEFINITION

Classic Airlines Problem Definition

Debra Davis

University of Phoenix

Problem Definition: Classic Airlines

Classic Airlines is one of the largest airlines with more 375 jets serving more than 2,300 flights going out daily. Classic Airlines has expanded to an organization that employs more than 32,000 employees since the airline began. Last year Classic airline had a record profit of a few million dollars with sales of $ 8.7 billion dollars. In spite of the fact the airline is very profitable, the share prices has declined down to 10% over the previous years and the morale of the employees is at its lowest because of the increase on the airline industry domestic and internationally. The customer loyalty of Classic Airlines is on the down slope of about 19% decreasing in numbers of the reward members program, and another 21% decrease in flights for the month of January 2005.

The airline is facing limiting restructuring cost because of excessive events that changed the planning process due to the incident of September 11th. Classic’s board of directors decided on a 15% cost reduction up front for the next few months ahead. Classic has limitations, where they will need to upgrade their flier miles with procedures that will determine their ROI while still meeting the goal of cost reduction. This paper will discuss some analytical solutions to help the progress of management to decide on a process to perform the necessary changes that’s required to help them keep the organization on the competitive edge of the aviation industry through acknowledging their situation, shareholder perspectives, end-state vision, and acknowledging the problem. It will also address how Classic has come to a certain point to where the most optimal solutions for them is addressing their organizational problems that are affecting the company during the same time, and establishing the end-state goals.

Describe the...