Classis Airline
Classic Airline Marketing Solution Mkt/571 Marketing November 20, 2012
Introduction Classic Airlines is the fifth largest airline serves 240 cities with more than 2,300 flights per day. The airline earned $10 million on $8.7 billion in sales last year (“University Of Phoenix Material”, 2008). . Although a profitable airline the increasing uncertainty of flying, Classic Airline’s stock prices have affected the company’s share price by a decrease of 10 percent during the year. The airlines Classic Rewards program measured decreases in membership and 21% in flights for remaining participants in the program. Encountering high fuel costs, tight competition, and low customer satisfaction, Classic airlines currently experiences difficulties to maintain its effective operation. The terrorist attack in the United States September 11th affected travelers, as they select other transportation methods and use air travel less. In addition, the reversal of the downturn experienced by the industry as a result of 9/11 was overestimated and Classic, like many other airlines, expanded too quickly. As the global economy becomes weaken, the airline industry has been under pressure to control costs by cutting down customers’ services program. As a result Classic Airlines face restrictive cost structure new competitors into the industry have not. In addition, before any further financial crisis, the airline’s Board has mandated a 15% percent across-the-board cost reduction over the next year and a half (“University Of Phoenix Material”, 2008). Within this mandate the airline must still find a way to maintain and attract more customers by upgrading and enhancing its frequent flyer program with strategic initiatives that will bring a significant return on investment (ROI). According to the rumor mill, there is a distinct possibility Classic Airlines will not meet the
Introduction Classic Airlines is the fifth largest airline serves 240 cities with more than 2,300 flights per day. The airline earned $10 million on $8.7 billion in sales last year (“University Of Phoenix Material”, 2008). . Although a profitable airline the increasing uncertainty of flying, Classic Airline’s stock prices have affected the company’s share price by a decrease of 10 percent during the year. The airlines Classic Rewards program measured decreases in membership and 21% in flights for remaining participants in the program. Encountering high fuel costs, tight competition, and low customer satisfaction, Classic airlines currently experiences difficulties to maintain its effective operation. The terrorist attack in the United States September 11th affected travelers, as they select other transportation methods and use air travel less. In addition, the reversal of the downturn experienced by the industry as a result of 9/11 was overestimated and Classic, like many other airlines, expanded too quickly. As the global economy becomes weaken, the airline industry has been under pressure to control costs by cutting down customers’ services program. As a result Classic Airlines face restrictive cost structure new competitors into the industry have not. In addition, before any further financial crisis, the airline’s Board has mandated a 15% percent across-the-board cost reduction over the next year and a half (“University Of Phoenix Material”, 2008). Within this mandate the airline must still find a way to maintain and attract more customers by upgrading and enhancing its frequent flyer program with strategic initiatives that will bring a significant return on investment (ROI). According to the rumor mill, there is a distinct possibility Classic Airlines will not meet the
References: Applegate, J. (2008). How To Boost Employee Morale on Budget. Retrieved from http://www.forbes.com/2008/08/28/small-business-morale-ent-hr-cx_ja_0828boostmorale.html McQuerrey, L. (n.d.). How to Measure the Quality of Customer Service. Retrieved from http://www.ehow.com/how_8534310_measure-quality-customer-service.html#ixzz2CdnjiaNp Stansberry, G. (2012). Customer Service Lessons from Nordstrom. Retrieved from http://www.openforum.com/idea-hub/topics/the-world/article/customer-service-lessons-from-nordstrom-1/ Southwest Airline Rapid Award. (n.d.). Retrieved from http://www.southwest.com/rapidrewards/overview?int=GNAVRPDRWDS&disc=&ss=0&cid=&companyName=&memberName= University of Phoenix Material. (n.d.). Retrieved from https://portal.phoenix.edu/classroom/coursematerials/mkt_571/20121030/OSIRIS:43344684