Introduction
According to Belobaba (1999, p.14) a look at the airline industry shows that Classic airlines is the world’s fifth largest airline. It has been facing some problems because of the tough market conditions in the airline industry (Golbe, 1986, p.3).
Marketing
The company has a fleet of more than 375 jets where it operates daily flights (Luft, 2006, p.5). In addition to these the company offers flight services to the market. It is also involved in cargo handling. After encountering dwindling customer base the airline company has started to market its in-flight operations so as to reach as many customers as possible. The airline wants to increase its revenue base from its operations. Classic airlines has been struggling to redefine its vision to be better and stronger.
Customers have been demanding that ticket prices be reduced every now and then; on the other hand the airline has tried to employ price cuts with an aim of attracting more customers. The company has also improved on service provision and relations so that it can increase customer loyalty. This has been through call centers and a CRM to add value to their customer relationship. Since customers are the ones who drive the business there has been an effort to review its loyalty program with an aim of locking in customers. In trying to consolidate its market further the airline has been involved in a strategic marketing plan with other airlines especially Skyline Airlines.
Marketing Challenges
According to Doganis ( 2001, p.15) though the company came up with a good loyalty scheme for its passengers it has not really bore any fruit because the number of passengers is less which has made it hard to increase its market further. The overall membership in the entire airline industry has been reducing and this has not made it easy for the airline to try and reach more members.
Treitel (2006, p.6) argues that marketing has further been hindered by high fuel prices that have reduced revenues that would otherwise have been channeled towards marketing. Employees that are tasked with ensuring that the marketing strategies work have been a hindrance towards success. Most of them have executed their duties poorly and in the process lost its established customers. Competition has intensified in the industry and no matter how much the airline has tried to market itself its efforts have always been countered with more sophisticated marketing strategies from competitors (Doganis, 2006, p.15).
The marketing styles employed have lacked the strategic strength that they should poses. The company has not been performing well and its marketing has not been received well as customers have seen it as a failure.
Current co-operate culture
The airline has been trying to improve it’s co-operate culture so that it can be viewed well by the society. The company has first of all allowed its employees to be unionized so that they relate well with other members of the airline industry. It has also been involved in strategic partnerships with other companies so that it can assist the community and in return improve on it’s co-operate image. The airline has also put in place a proper reward scheme for its customers (these are aimed at building good relations).
Conclusion
Classic airlines has been facing many problems and it needs to review some of its business strategies to increase profits. Because of dwindling profitability it has been projected to be on its way to bankruptcy. Since cost cutting measures have not improved its business it needs to come up with new ways that will be more appealing to the market.
References
Belobaba, P. (1999). Evaluation of Airline Industry and Competitive Market Conditions Affecting Logan Airport.
Doganis, R. (2001).The airline business in the twenty first century. New York: Routledge.
Doganis, R. (2006). The airline business. New York: Routledge.
Golbe, D. (1986). Safety and profits in the airline industry.
Luft, G. (2006).The oil crisis and its impact on the airline cargo industry.
Treitel, D. (2004). Latest trends in the airline industry.