Classic Airlines Marketing Solution

Classic Airlines is the world’s fifth largest airline, Classic Airlines, commands a fleet of more than 375 jets that serve 240 cities with over 2,300 daily flights. In the 25 years since its inception, Classic has grown to an organization of 32,000 employees, and last year, it earned $10 million on $8.7 billion in sales (Classic Airlines Scenario, 2011).
The airline industry faces an unprecedented weakness in revenue and air travel because of the rising oil prices, falling consumer demand, especially after September 11, and the global recession. Though profitable, Classic Airlines is no stranger to the challenges that plague today‘s airlines.
Few internal and external pressures are contributing to Classic Airline’s crisis, by using the nine-step problem-solving model, Classic can address its problems, identify the objectives and obstacles of the marketing department, and the marketing resources available to resolve this crisis.
“Problems are opportunities to make things better and should be viewed as such” (BPI Consulting, LLC). Classic must use the problem-solving model to solve its problem; this model is effective with most of the problems that may occur.
Step 1: Define the Problem.
Classic must define the problem as concretely and specifically as possible, some helpful tools in defining the problem are brainstorming, creating an initial process flow diagram of the current process, and control chart data. These tools can help identify how the current process works start to finish, and can dramatically help define the problem.
Classic has experienced decline; 10% decrease in share prices in the past year because uncertainty about flying, weakness of consumer confidence, and negativity from Wall Street, the media, and the public affecting employee morale (W1 paper, 2011).
Classic’s board of directors mandated a 15% across-the-board cost reduction over the next 18 months, the leadership team must reduce the marketing...