Classic Airlines

Problem Solution: Classic Airlines
Within a turbulent, highly competitive marketplace, airlines are finding it increasingly important to respond both quickly and effectively to the changing patterns of customer demand.   Who are airlines’ customers and what are their needs and aspirations?   If airlines don’t know the profitability by customer, how can airlines be sure that they are serving their best customers and applying value to all their business decisions?   If airlines had the means to do both, profits would soar.   Not only would airlines become more efficient, but also their shareholders would see an investment in their only real source of revenue, the customer, and the meaningful profits that result.   With so few new revenue opportunities, do airlines need more aircraft?   Or instead should airlines consider a customer-centric focused strategy that uncovers and maintains shareholder value.   Airlines need to know and understand those customers who contribute the most to their bottom line.  
Classic Airlines is one such airline.   Faced with increased competition, shrinking profit margins, and an across-the-board cost reduction, Classic Air is struggling to remain aloft.   The airline’s challenge is sustaining and creating profits in the wake of heavier competition and product homogenization.   The opportunities for Classic Airlines are in managing customer relationships, controlling costs and applying customer profitability to the entire business.   Achieving these objectives will require Classic Airlines to attract customers, manage its fleet, manage its people, and manage its finances.   And, the engine that will make all of this fly is Classic Airlines leadership at all levels of the company.   It is the latter that will ultimately determine the final success of Classic’s strategic initiatives.  

Describe the Situation
Classic Airlines has been a successful airline for 25 years.   It commands a fleet of more than 375 jets that serve 240 cities with more...