December 5, 2011
Classic Airlines Marketing Solution
Classic Airlines is the world’s fifth largest airline with a very large fleet of jets. Classic is facing many adversities which are affecting the company’s overall bottom line. These adversities could have an effect on the company that would negatively impact any future growth. Classic is faced with trying to continually meet customer needs while maintaining stock prices and satisfying its board of directors with cost reduction. To move this company in a forward direction, management will need to consider identifying the problems, maintaining the company’s vision, and creating innovative ideas that will turn its challenges into solutions. In the following, I will identify some of the challenges and recommend solutions to the issues Classic Airlines is faced with.
Issue and Opportunity Identification
There are several events that led to the current situation and challenges faced by Classic Airlines. Classic Airlines has been in the industry for about 25 years. Classic Airlines has always been a profitable company. Although profitable, Classic has been faced with many tests while trying to maintain in these volatile market conditions.
Classic has been faced with trying to maintain services when they have to combat rising fuel and labor costs. These rising costs, amongst others, have kept Classic from maintaining its large profitable margin. The profitability of the airline industries is largely based on good economic conditions. When the economy is operating in a positive manner, the cost of fuel is more affordable for Classic Airlines.
Stock prices at Classic have been affected by the uncertainty about the airline industry. After events like September 11, 2001, most airlines saw significant stock price declines. Classic Airlines will have to investigate measures the company can take that will... [continues]
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