Reference no: EM132367140

PREMIER AIRLINES CAS Premier Airlines is 25 years old and serves mainly the eastern half of the United States. About 55% of the passengers are business travelers and 45% use the airline for personal trips Annual revenues are $2.1 billion and the airline employs 12,000 people. Premier has had reasonable financial success.

For customer satisfaction, Premier is average; for operating cost, Premier has an average rating relative to competition. On most routes, Premier two competitors. The age of the lower than the average competitor. A frequent flyer program slightly below industry has at least e fleet of planes is slightly marketing manager) was appointed three years ago.

Customer satisfaction is emphasized but private market research and public surveys show that Premier is slightly below average in overall customer satisfaction. Complaints cover reservations, airport checking, flight operations, and post flight services. Many complaints mention rudeness and lack of customer sensitivity on the part of employees.

Based on discussions with ground and in-flight employees, the Quality Director learned that employees believe they are not provided with sufficient resources and t needs. The employees express bitter comments about management' emphasis on keeping costs low. Employees also believe that "customers expect too much".

Premier uses a private firm to do market research. The research asks customers flight services, and baggage services. Results are summarized by the Quality Department and forwarded to departments. Complaints are received by the Quality Department, acknowledged, and sent to the appropriate department for action and input for a response to the customer. Management to provide overall ratings for airport checking, has been proud of the detailed work instructions and training that is provided to all key employees.

The CEO learned of the distinction between customer satisfaction and customer loyalty. He wonders if the mediocre rating on customer satisfaction causes customers to switch to competitors. The lost revenue then creates pressure to reduce operating costs which may cause further loss in customer satisfaction.

The Quality Director must identify the changes needed to improve customer satisfaction and loyalty but also maintain financial stability.