Finance Concept

In: Business and Management

Submitted By omattern
Words 1711
Pages 7
Classic Airlines Solution
Odessa Mattern
Marketing/571
University of Phoenix
Heidi Kelley
April 18, 2011

Introduction This paper will be to analyzing and apply a problem-solving process situation at Classic Airlines. Using in the process to come up with the final analysis for Classic Airline. The beginning will give background on the company. The middle will address the problems that Classic Airline is facing It will also show how the challenges and opportunities in each department within the organization. The ending will be the SMART end goals that will measure the end results.
Background on Company Classic Airlines has been in business for 25 years and is the world’s fifth largest airline with more than 375 jests that serve 240 cities. Classic Airlines employ 32,000 employees and earned $10 million on $8.7 billion in sales. In the past year, Classic Airlines have seen a decrease of 10% in share prices and a 19% decrease in the number of Classic Rewards members; with a 21% decrease in flights among the remaining member (University of Phoenix).
Problems Classic Airline Facing Though profitable, Classic is no stranger to the challenges that plague today’s airlines. The following are problems that Classic is facing: * 19% decrease in Classic Rewards members * The travel downturn that followed September 11, 2001 * Rising cost of fuel and labor * 10% decrease in share prices * Negativity from Wall Street, the media and the public * A restrictive cost structure that younger airlines do not * A mandated 15% across-the-board cost reduction over the next 18 months * 21% decrease in flights by member * Loyal customers jumped ship * Remaining flying less frequently with Classic Airlines (University of Phoenix).
The opportunities To counter any further financial crisis, Classic needs to do the following:…...

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