Classic Airlines and Marketing Paper
University of Phoenix
November 4, 2009
Classic Airlines and Marketing Paper
???Classic Airlines is the world??™s fifth largest airline. Its fleet consists of more than 375 jets serving 240 cities with more than 2300 daily flights. Classic has grown to an organization of 32,000 employees in its 25-year inception and last year earned $10 million on $8.7 billion in sales. Classic Airlines has sustained profits even though it has been plagued with numerous problems. Classic has seen a 10% decrease in share prices in the past year. Employee morale is at its lowest because of scrutiny from the investment community, negativity from Wall Street, the media, and the public. Customer confidence is also declining as well as Classic??™s Rewards program, which measured a 19% decrease in the number of Classic Rewards members, and a 21% decrease in flights per remaining members. Rising fuel and labor cost have hindered Classic??™s ability to compete for the valued frequent flier miles. The September 11 past events have caused Classic to face a restrictive cost structure unlike some of the newer airlines that have developed recently and lastly, Classic is facing a 15% across-the-board cost reduction over the next 18 months(My Phoenix Esource)???. This paper will point out the challenges Classic is currently facing within the corporate culture, as well as, everyday challenges as a whole.
Classic Airlines has many challenges, but since this airline has been around so long, and throughout the years have risen above other issues; this airline has an ingredient that the newer airlines does not, and that is experience, and this factor alone will give Classic an advantage. Classic airlines needs to examine all problems through extensive research, and turn the obvious troubled circumstances into opportunities through carefully defining the situation. First, Classic should target frequent business travelers who expect a higher level of individualized service. By taking care of the customers needs and wants, Classic Airlines would be directly taking care of several issues at one time, boosting the consumer??™s overall, increasing profits for the company, and whatever negative words that might have been affiliated with the company would be reduced, because instead of immediately thinking negatively about Classic; consumer??™s would think of the airline??™s positive traits before negative ones. All of the factors mentioned previously can be approached with the mindset of keeping the overall marketing cost to a minimal, and focusing on what is important, and that is providing the best quality of service, and getting back customers.
Classic being on of the older airlines is at a constant battle with the newer airlines, because of the fact that marketing factors have changed, and with that being said Classic needs to return to the basics, and revamp the Classic Rewards Program. Classic should begin to research potential companies to partner with to improve the flight experiences of the customers??™. This would increase the frequent flyer mile purchase and partnership opportunities, which in turn would make Classic??™s frequent flyer program more rewarding for the customer creating value. Since Classic Airlines cannot keep the cost of fuel from increasing it must developed a way to enhance its fuel efficiency. ? Another challenge that Classic will face is making wise marketing decisions, and how the company needs to approach spreading the words about any potential future partnerships with other companies.
Classic also faces challenges within the arena of the current corporate culture. Classic corporate culture includes: the stakeholders, management, unions, and any area that Classic airlines resides, so in short, Classic has a lot on the line if issues are not resolved. A major challenge will be to make sure the Upper and Lower management are all on the same page, because it is evident through various email communication throughout the company that these two entities are not on the same page. There is not enough communication between upper and lower management, because often they do not agree with each other, and this makes it hard to share viewpoints.
The stockholders want the decrease in share prices to reverse itself and head toward an incline. An increase in customer confidence would also help to raise stockholders??™ stock price. Classic??™s management wants it to succeed as a business and be a viable part of the airline industry.? ? Management wants to increase the stature of the company by making Classic Airlines a corporation that creates opportunities for its employees. Classic??™s employees want the negative publicity from Wall Street to discontinue. The union must protect the benefits, salaries, jobs, and rights of Classics??™ employees.? ? The cities and towns where Classic has its terminals want the continued revenue that the airline affords them.
In conclusion, again, there are many challenges that could hold Classic Airlines back from gaining continues success. It all beings with communication and then realizing what service the company is being upheld to by the customers. The issues begin with the perspectives of the company, ethics, Management doing research to figure out what all of the needs of the business are, and how all of these things tie into making the customers happy, and meeting all financial goals.
University of Phoenix Esource. Retrieved November 3rd, 2009, from www.phoenix.edu