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Classic Airlines

In: Business and Management

Submitted By 01dipakthakur
Words 2966
Pages 12
Introduction
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Classic Airlines is the fifth largest airline in the world and it commands a fleet of 375 and above jets that serve approximately 240 cities on daily flights that are around 2, 300. Classic Airlines was incepted 25 years ago and since then, it has grown into a large organization of almost 32,000 employees. Despite the high rate of profitability of Classic Airlines, challenges that affect today’s Airlines are inevitable. Some of the challenges include uncertainty about flying which has greatly affected stock prices.
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The other challenge is consumer confidence that has greatly decreased probably due to increased negativity from the public, media and even Wall Street. Classic Airlines desire is to boost employee and consumer confidence and this is through increasing employee and customer satisfaction and keeping down costs. This research paper will use Classic Airline scenario to present the current issues and opportunities, identify a marketing problem, describe the end state vision and finally identify solutions to the problem.
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Discussion
Identification of issues and Opportunities
The marketing activities of Classic Airlines are influenced by several factors and some of these factors are uncontrolled. It is evident that the company is faced with rising costs of labor and fuel which has led to cutting of costs through better efficiency and high passenger load ratios. The high costs have also reduced the chances and ability of Classic Airlines to compete for the position of frequent flier. The high labor and fuel costs are a key obstacle to high profitability of Classic Airlines. There is also decreased consumer confidence and consumers are less willing to travel using the airline (Shaw, 2007)....

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