IntroductionClassic Airlines, like many airlines, faces many challenges in an extremely competitive market and difficult economic times. Despite the financial conditions of the economy, Class Airlines must emphasize customer value that meets and exceeds customer expectations, whereby Classic Airlines will generate a reasonable return on shareholder investments. Top 3 Problems Plaguing Classic Airlines One of the biggest problems plaguing Classic Airlines is the company's stance on customer service. Classic Airlines has “lost touch” (UOP, 2008) with its customers. Management has failed to establish innovative “service elements, operating procedures” or “marketing programs” that can build customer loyalty, attract new consumers and grow business (UOP, 2008). Last but not least, Classic Airlines' membership rewards program has decreased over the past year by 20%. “More than 160,000 supposedly loyal customers fly on airlines other than Classic,” and Classic's frequent flyer program is not innovative and attractive enough to support Classic's current frequent flyer customer base. (UOP, 2008) Another challenge that Classic Airlines faces is the organization's customer relationship management (CRM) system. While Classic Airlines' CRM platform was the best on the market, the system was not configured for seamless cross-departmental integration, multiple channels, and to effectively impact Classic Airlines' customer service and satisfaction. Classic Airline's CRM system was implemented as a cost saver for management that produced reports and reduced productivity time among customer service representatives and consumers and not a successful marketing tool.