Classic Airlines must address the challenges the company is facing. The company is
experiencing a decrease in stock prices. Employee morale is low because of finger pointing and
lack of unity. The case study states that “loyal customers were jumping ship and the ones still
aboard seemed to be flying less frequently” (Case Study, 2008).
The senior vice president of customer service explains that “customers have no voice” which is a major challenge for the company. Classic Airlines and many of its rivals expanded too quickly (Case Study, 2008). The
case study mentions that the CEO and CFO focus on numbers and less on marketing.
Membership in classic rewards is down nearly 20% and the average number of flights per
member is down more than 20%. The company recently mandated a 15% across the board cost
reduction over the next 18 months which is also a major challenge for all departments. “Changes
in the marketing environment are a source of opportunities and threats to be managed. The
process of continually acquiring information on events occurring outside the organization to
identify and interpret potential trends is called environmental scanning”
Environmental scanning will help the company progress.