Classic Airlines - Problem Solution

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Issue:

Miscellaneous

 

Written by:

Richard T

 

Date added:

October 23, 2013

 

Level:

University

 

Grade:

A

 

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12 / 3210

 

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9072 times

 

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(Classic Airlines, 2007) Although the airline is profitable, its share prices have decreased by 10% in the past year and employee morale has been at its lowest due to increase scrutiny on the airline industry from all sectors of the economy. (Classic Airlines, 2007) Classic Airline's customer loyalty is on the decline as evidenced by the 19% decrease in the number of Classic rewards members and 21% decrease in flights per remaining member as of January of 2005...
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(Classic Airlines, 2007) The company is also facing a restrictive cost restructure due to overly optimistic expansion plans based on anticipated rebound of post 09/11 travel. Classic's Board of Directors recently mandated a 15% across-the-board cost reduction over the next 18 months. (Classic Airlines, 2007) Within the constraints of the mandate, Classic also needs to improve its frequent flier program with methods that will demonstrate a measurable return on any investment while still meeting the cost reduction goal...
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