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Classic Airlines marketing challenges; current corporate culture.

Consider what product or service Classic Airlines is marketing, the marketing challenges it faces, and its current corporate culture.

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We know that Classic Airlines is the world's fifth largest airline. Its fleet consists of more than 375 jets serving 240 cities with more than 2300 daily flights. Classic has grown to an organization of 32,000 employees in its 25-year inception and last year earned $10 million on $8.7 billion in sales. Classic Airlines has sustained profits even though it has been plagued with numerous problems. Classic has seen a 10% decrease in share prices in the past year. Employee morale is at its lowest because of scrutiny from the investment community, negativity from Wall Street, the media, and the public. Customer confidence is also declining as well as Classic's Rewards program, which measured a 19% decrease in the number of Classic Rewards members, and a 21% decrease in flights per remaining members. Rising fuel and labor cost have hindered Classic's ability to compete for the valued frequent flier miles. The 911 aftermaths have caused Classic to face a restrictive cost structure unlike younger airline companies. And if that is not enough, Classic is facing a 15% across-the-board cost reduction over the next 18 months (all taken from the UoP scenario).

Now I believe it was Albert Einstein who once said that in the middle of difficulty lies opportunity. Understanding that, we can see that some of the best opportunities often originate from problems. Classic Airlines has the ability to turn its ...

Solution Summary

The expert determines what product or service Classic Airlines is marketing. The challenges of the corporate culture is determined.