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Classic Airlines

Problem Solution: Classic Airlines
Jim Conway
University of Phoenix
Instructor: Dr. Arnie Witchel
October 15, 2007


Problem Solution: Classic Airlines
Classic Airlines is the world's fifth largest airline. They were established 25 years ago and grown to include a fleet of more than 375 jets that serve 240 cities with more than 2,300 daily flights. Though profitable, Classic Airlines has struggled in recent years due to increase costs and reduced consumer confidence. The airline industry as a whole has decrease in industry share prices, Classic Airlines is no exception, seeing a 10% decrease in the past year. The airline industry has been under a microscope recently. The negative press from Wall Street, consumers and media has resulted in poor employee moral for the Classic Airlines team.
These factors have limited Classic Airlines ability to compete for the valued industry frequent flyers. With rising costs and a competitive marketplace with new and emerging carriers, Classic Airlines is need to developing a Customer Relationship Management (CRM) program to counter any further financial distress. The following is a problem solution analysis to identify the CRM issues and opportunities that they face and must strive to optimize in order to achieve their end-state business goals.
Describe the Situation
Issue and Opportunity Identification
Classic Airlines is faced with many issues and opportunities as they expand their organization and focus on CRM. As consumer confidence has fallen and costs have increased to do business, the need to develop value-added solutions, which meet the consumer demands but also allow for cost reduction policies, has become a primary focus. Long-term planning and business strategies must be put into place to maximize the value of the company and of its shareholders. Classic Airlines must look at the best approach for managing CRM, Reward participants and marketing functions to find a solution to meet the consumer...