Classic Airlines 9 Step Problem Solving

Classic Airlines is the world’s fifth largest airline, deploying an impressive 2,300 flights daily to 240 cities. Last year, it earned $10 million on $8.7 billion in sales. Despite the profits, Classic is experiencing negative media, declining stock prices, and rising costs of fuel and labor over the past year. In addition, to the destructive reports and low employee morale, Classic’s Board of Directors is requiring a 15 percent cost reduction over the next 18 months. Leadership must implement a nine-step problem solving method to identify the challenges, opportunities, solutions, and desirable end results to restore customer loyalty, employee morale, and stock prices. The nine-step problem solving method is defined as: step one, developing a problem statement; step two, identifying the potential cause of the problem; step three, verifying the likely causes by gathering data; step four, identifying possible solutions; step five, evaluating alternative solutions; step six, determining the best solution; step seven, identifying and assessing the risks; step eight, implementing the solution; and step nine, evaluating the results (http://www.managment-hub.com). These steps will be explained in detail to assist Classic Airlines with the challenges faced today.
Step One: Describe the Situation Classic Airlines is suffering from self-inflicted operational issues. Expanding too quickly created a financial crisis with a domino effect. Falling stock prices, declining customer loyalty, and low employee morale have resulted. In addition, the media has nothing positive to say about the airline industry because of increasing fuel and labor costs. As a result, the Board of Directors is mandating a 15 percent across-the-board cost reduction over the next 18 months (University of Phoenix, 2011). Classic offers a rewards program to its frequent flying customers, however the program is difficult to understand and frustrating for the employees to explain. Classic