Classic airline and marketing - Essay Example

ic Airline and Marketing Affiliation with more information about affiliation, research grants, conflict of interest and how to contactIntroduction:Classic Airlines have been one of the most important airline services in the world. The day has witnessed a boom in airline industry and there are several players in the industry that provide cheap to royal services. The introduction of novel and innovative services has caused a decline in the progress of Classic Airlines, which is a reputed airline service with over 300 jets and flying to more than 200 metros.

Marketing Challenges for Classic Airlines:Classic Airlines have confronted difficulty in the year 2005 in their operations. They have registered a decrease in their customer trustworthiness and it has continued to affect the status they have carved out in the past. After insignificant loss in this sector, many of the airline companies utilized this chance and have emerged as the top players in the airline business. The financial crisis also contributed to aggravate the situation and paved the way for the decline of this airline company.

However, they have recorded earnings of over eight billion dollars and this has given scope for revival. These profits are not insignificant if one considers the crunch in travel sector due to global financial crisis. But, problems including the failure in the marketing have again caused this airline to show poor performance. They found a decrease of 10% relating to the shareholders. Again, due to the global economic crisis, the board of directors of Classic Airlines has been forced to decrease the rates by 15%.

They has also been a little hesitant to improve their marketing technologies. These made them to pay badly and struggled to withstand in the current competition. The company has also failed to provide suitable offers to attract customers to their services. Most of the other companies came up with numerous offers on hands to attract new customers and retain the old ones. Thus, the previous loyal customers and some of the frequent flyers started to migrate to other airlines that offered them higher value in their services and are also ready to travel for low prices.

When Classic Airlines has sensed this idea, they were not able to implement a marketing plan to retain their loyal customers because of the rate problems. They were not able to run their operation on a cost that the other companies offer. Thus, the marketing tactics to retain the reputation of the company among the passengers did not bear any fruits. Current Corporate Culture:Currently, Classic Airlines are not able to find an alternative to escape from their dilemma. They are not ready to reduce the cost from what they have decided in their budget.

They are now trying to replicate an outstanding client service to catch the attention of those lost customers and new clients who do not look merely at the offers and low prices. The crisis of Classic Airlines seems to have hit the whole airline sector. “To meet the requirements of their increasingly discerning customers, some airlines have to invest heavily in the quality of service that they offer, both on the ground and in the air. Ticketless travel, new interactive entertainment systems, and more comfortable seating are just some of the product enhancements being introduced to attract and retain customers” (The Airline Industry, n.d).Reference ListThe Airline Industry. (n.d). Stanford. Retrieved May 12, 2011, from http://adg.stanford.edu/aa241/intro/airlineindustry.html