Classic Airlines Problem Solution

The airline industry has long attempted to segment the air travel market in order to effectively target its constituents. The classic airline model consists of First Class, Business Class and Economy, and the demographics that make up the classes have both similarities and differences to the other classes. For instance there may be similarities between business class travellers on a particular flight, but they will not all be travelling for the same reason. An almost-universal characteristic of air travel is that customers do not fly for the sake of flying; the destination is the important element and the travel is a by-product, a means-to-an-end that involves the necessity of an aircraft that gets the customer from point A to point B.

Virgin Blue Airlines Group, incorporating all four airlines, employs just 5952 people who make up our team. We believe, above all, it’s our people who set us apart among airlines. Quite simply it’s their commitment, imagination and pride that makes our business fly. The team across all four of our airlines, both on the ground and in the sky, is motivated to go the extra mile to make flying memorable for all the right reasons. Indeed outstanding service is part of our DNA. Our team’s passion and belief in offering service translates directly to our Guest’s enjoyment of

Competitors in the air travel business have to overcome several hurdles to maintain a market share and even more to increase it. Southwest Airlines has become a leader, with regards to ticketed seats, with the simple strategy: low-cost and no-frills combined with a crew that is well groomed in customer satisfaction. Southwest’s business strategy focuses on their record turnaround times at the gate, customer satisfaction, and employee satisfaction. Along with this focus, their frugal spending habits have built a highly profitable airline.

Classic Airlines is the world’s fifth largest airline, deploying an impressive 2,300 flights daily to 240 cities. Last year, it earned $10 million on $8.7 billion in sales. Despite the profits, Classic is experiencing negative media, declining stock prices, and rising costs of fuel and labor over the past year. In addition, to the destructive reports and low employee morale, Classic’s Board of Directors is requiring a 15 percent cost reduction over the next 18 months. Leadership must implement a nine-step problem solving method to identify the challenges, opportunities, solutions, and desirable end results to restore customer loyalty, employee morale, and stock prices.

result of this, no other airline in the industry’s history has enjoyed the customer loyalty and

Within the category of services, it applies to different types of customers such as family, solo travellers and business travellers, the key focus of this report is on the upper-class service for business travellers and how it influences business travellers to purchase a flight package from them instead of using their competitors Jet airways, British Airways or Emirates. We can discover the decision-making process and how it operates but it’s important to understand the marketing strategy behind the company that makes it very successful and attracts more business travellers to fly with them.

Classic Airlines will become a profitable and successful organization by establishing better relationships with its internal and external customers.

Southwest airlines is or was viewed as the yardstick in the airline industry for its operational excellence. They offered short haul, low cost, point to point service between cities and airports. They avoided bog airports and did not fly long distances. They had a wide variety of customers, which included, business professionals, families, and students. Southwest had low fares and recurrent departures, this attracted customers. Southwest airlines channeled all its activities to provide low cost, expedient services. Through fast turnaround times of 15 minutes at the gates, they were able to keep their planes flying for longer hours. (2002). Southwest had a discrete advantage over their rivals by implementing an active and well-organized operational strategy that was very important to its overall corporate strategy.

In 1946, American Airlines established its maintenance and engineering bases in Tulsa, Oklahoma. In 1953, American Airlines pioneered nonstop transcontinental service across the across the U.S. with the Douglas DC-7. During 1957, American opens the world’s first special facility for flight attendant training, the American Airlines Stewardess College, in Dallas/Fort Worth. During January 1959, American Airlines introduces the Lockheed Electra, which is the first U.S.-designed turboprop plane. On December 3, 1964, American Airlines hires Dave Harris, the first African-American pilot for a commercial plane. In January 1970, American Airlines merged with Trans Caribbean Airways, gaining Caribbean routes. In 1974, American Airlines released their one-step automated check-in system, greatly increasing efficiency within the company for checking passengers in and getting them on to the correct planes. Then in 1975, American Airlines began marketing SABRE (Semi-Automatic Business Research Environment), which is a computer reservation system that was developed to automate the way American Airlines booked their reservations to traveling agencies in the U.S. After this, in 1979, American Airlines relocated their headquarters from New York City to Dallas/Fort Worth Texas, where it still resides today. On May 1st, 1981, American Airlines introduces AAdvantage®, the first airline loyalty program. On August 1st, 1983, America Airline West commences operations in Tempe, Arizona.

Aircel is one of the leading brands in telecommunication industry. Aircel Business Solutions is a division of Aircel which provides premium internet services. ABS is new to the market and has got only 7% market share. So it has got a huge un-captured market which increases its market potential. Aircel’s internet service has got a market potential of 8.359 crore Rupees, among small and medium firms in Bangalore. This is not a bad case as the company is very new to the market. Aircel should concentrate more upon the factors like quality of service they provide and the network speed they deliver, which increases its customer satisfaction. Small and medium scale enterprises mainly use internet leased line for data conferencing. Aircel

Aircel is one of India’s leading innovative mobile service providers. The company is a pan-India 2G operator with 3G spectrum in 13 circles and is credited

Classic Airlines is established in over 240 cities, employs over 32,000 people, and is the world’s fifth largest airline with a fleet of over 375 jets. Last year, it yielded over $8.7 billion in sales. However, Classic is currently faced with many challenges derived from internal and external factors. This paper will identify and apply a problem solving process to Classic’s current crisis. It will also include consideration of the internal and external pressures contributing to Classic’s current crisis, objectives and obstacles of the marketing department, and the marketing resources available to help cure this crisis.

A main issue for Classic Airlines is the continued declining stock price due to failed customer service programs, which has caused the stock to fall 10 percent from the previous year. Symptoms of this main issue include 19 percent decrease in the number of Classic Rewards members, rising fuel, labor cost, and a mandate for a 15 percent cost reduction over the next 18 months by the Board. Classic Airlines has an opportunity to change these issues in to turn positive outcomes. Classic Airlines has created a Classic Reward team that includes Chief Marketing Officer Kevin Boyle, Vice President (VP) Customer Service Renee Epson, and Senior VP Human Resources John Hartman has been challenged to redesign the rewards program without lowering the price or incurring more cost. The Classic Reward team came to an agreement that the customer service is the main issue at Classic Airlines. Classic

The Low cost airline model is a plan of action in the airline industry that is principally centered on expense decrease as the fundamental upper hand (Briody and Ferraro, 2011). The model, which was initially presented in 1978, was a reaction to customer protest to high bills that were being charged by non-contending carriers with high working expenses (Sheth and Sisodia, 2002). Today, most airline carriers have actualized the plan of the business model. It has been demonstrated that executing this plan of action prompts expense focal points of up to 40% for minimal effort transporters when contrasted with built up carriers (Nicholas, 2004). Ryan Air is one of the low cost carriers, which have actualized this plan of

The Aircel Group, formed in the year 1994, it offers affordable and outstanding mobile services to a vast subscriber base in India. Aircel has a vision of delighting its customers by giving them the respect they deserve. Their goal is to provide their customers with exemplary service and persistently look for new ways to the surpass their expectations.