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Classic Airlines Marketing Solution

Classic Airlines Marketing Solution
Joscelyne Rita
University of Phoenix
MKT 571
April 17, 2011

Heidi Kelley

Abstract
Throughout their twenty-five years of operation, Classic Airlines (CA) has become the fifth largest airline in the world; with earnings of $10 million dollars last year and organizational growth to include more than 32,000 employees worldwide. (University of Phoenix,? 2005). Critical success factors for the organization in previous years include understanding the airline/travel industry, comprising detailed market analysis, global expansion to include international markets, and strategic business models geared to eliminate waste. Presently, CA has endured numerous challenges which threaten the future success of this company. The goal of this paper will be to analyze the current situation at CA to determine the challenges, opportunities, external and internal pressures. Develop a problem statement with multiple outcomes, create a benchmark, provide possible recommendations, and apply problem-solving method to the current crisis.

Classic Airlines Marketing Solution
Classic Airlines (CA) has experienced a significant decrease in revenues and a 10% decrease in share prices; in part, due to the rising costs of fuel and labor costs and a shaky economy. According to the CA??™s annual financial report, the company??™s operational income dropped to a staggering 50 million dollars. (ibid, 1). In addition to the financial crisis, destructive criticism from Wall Street and the media has resulted in negative publicity for the airline which has affected employee morale and stolen consumer confidence. A complete corporate analysis must be conducted to evaluate the current situation at CA and determine the challenges and opportunities available to the organization. Once the challenges and obstacles have been isolated and identified management will be able to implement a new and improved marketing strategy to guarantee success for the future.
Corporate Challenges
CA is currently facing three main challenges: decreased financial resources, a decline in customer membership, and fragmented organizational structure. While each issue might present a specific and unique challenge, they all intertwined. The decline in the customer loyality program has resulted in a loss of revenue and the loss of revenue has

References
University of Phoenix. (2005). Classic Airlines Markeing Soultion. Retrieved from University of Phoenix, MKT 571 website