Classic Airlines Problem Solution

Problem-Solving Model Describe the Situation Classic Airlines consists of 375 aircraft that travel to 240 cities more than 2300 times per day with a workforce of 32,000 personnel. Classic Airlines’ revenue was in excess of $8.7 billion last year bringing in a $10 million dollar profit and establishing the airline as the fifth largest air travel company in the world. Despite good sales and profits, Classic Airlines has been receiving harsh criticism from their customers resulting in a 10% decrease in profit shares, reduction in customer loyalty, 19% drop in rewards customers, 21% reduction in flights and the lowest morale seen in recent years. Classic Airlines remains optimistic about customer flight travel but must find new, innovative ways to market the airline better because the Classic Airlines Board of Directors is mandating a 15% cost reduction from all departments for the next 18 months. Classics Airlines needs to market their airlines better to obtain and maintain customers. The airline has already made adjustments to their pricing strategy so that it may align with other airlines to allow them to be more competitive. The airline must also enhance their capability to analyze, and predict market trends with the use of customer data so the airline may change or offset the budgets, marketing, and resources so the company can align to such changes. Classic Airlines will need to obtain as much data about the company as well as feedback from the customers to make appropriate changes that will benefit the company. Frame the Right Problem Current business operations for Classic Airlines showcase various factors that are affecting their business model. The first item that appears would be the company’s current Customer Relationship Management (CRM) tool. Data mining and collection has taken place but with the failure of system integration with the web portal, the CRM tool has not been used to its complete capability. By

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