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Classic Airlines has “lost touch” (UOP, 2008) with its customers. Management has failed to establish “service elements, operational procedures” or innovative “marketing programs” that will retain loyal customers, attract new consumers and grow business (UOP, 2008) Last but not least, Classic Airlines membership rewards program decreased over the past year by 20%. “More than 160,000 allegedly loyal customers are flying other than Classic airlines” and Classic’s frequent flier program is not innovative and attractive enough to sustain Classic current frequent flier clientele. (UOP, 2008)
Another challenge facing Classic Airlines is the organization’s customer relationship management (CRM) system...
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