Classic Airlines Problem SolutionProblem Solution: Classic AirlinesClassic Airlines found itself in a difficult situation. They have lost customers due to a lack of understanding of the environment in which they operate. They tried to lower rates and reduce customer service, which was not what their customers wanted. They need to use information from their CRM system to understand what they need to change to win back lost customers and grow their customer base in the future. By integrating their phone system with their Internet system, the information they gather will help them create a marketing plan that will take the company into the future. Classic Airlines must use the information in its CRM system to understand the value of its customers and develop a plan to meet those needs and values. Describing the situation Identifying problems and opportunities Classic Airlines is the fifth largest airline in the world (Scenario, 2008 ). They are in a downward spiral in their customer loyalty program, the number of flights per loyal customer, and the company's stock price. The loyalty program has seen a decline of almost 20% in recent years. This reflects the changing attitude of clients who do not believe that staying in the program is worth it. Remaining customers do not fly as much or at all on Classic Airlines as the number of flights for remaining customers has decreased by about 21%. The company's share price is down 10% over the past year. This reflects the changing attitude and uncertainty in flying that has permeated the industry since late 2001. Classic Airlines has some work to do to maintain its position and acquire more customers. The airline has the information it needs to turn the situation around. Their CRM system is one of the best in the industry but has not been set up to maximize information opportunities. By reworking the parameters and connecting it to the company phone system, Classic will be able to use the information collected to enhance its loyalty program and increase its customer base. Classic also has the opportunity to form an alliance with a European and a South American airline that they could include in the loyalty program. Stakeholder Perspectives/Ethical Dilemmas Classic Airlines has a large amount of information in their CRM system but does not use this information for their benefit.