Situational Analysis

Euro-Air is a major commercial airline player in Europe and North America providing services
in more than 300 locations in 90 countries around the world. Though it plodded lightly in service
culture, it had a reputation of being safety-oriented and technically reliable. It was also a member of
Crown alliance network. Though it wasnt unusual for Euro Air to receive passenger complaints, but
a recent complaint letter (including recommendations) by Mr. Peter Boyd, a frequent business class
flyer and a Platinum elite member (Crown Alliance Network), has particularly captivated attention of
Miller and Gold, two of the senior regional representatives of North America for Euro-Air. The list of
complaints filed by Boyd were actually found to be valid and can put the airlines reputation at stake.
The dilemma facing Herman and Elizabeth was on choosing the best course of action to address
Peters complaint and provide him the appropriate compensation.

8. Plan of Action
Step 1: Analyze the entire situation and make a pre-decided compensation plan to offer to Mr.
Boyd.
Step 2: Elizabeth Gold should call Mr. Boyd offering a formal apology for the inconvenience
caused and cite a genuinely convincing reason for the non-disclosure of flight delay and poor
service.
Step 3: She should express Euro-Airs willingness to compensate for airline mismanagement
along with a formal apology letter from the headquarters.
Step 4: Mr. Boyd should be apprised of how Euro-Air plans to deal with such scenarios in the
future and maintaining their relationship with frequent and premium customers.
Step 4: Offer a compensation plan to Mr. Boyd which would be in effect from the same day.
Step 6: Assess Boyds response to the compensation being offered and if he doesnt agree, renegotiate and implement the contingency plan.

9. Contingency Plan
We suggest if Mr. Boyd doesnt agree to the compensation as provided during the Plan of Action,
a senior executive should personally visit Mr. Boyd after fixing an appointment. In the face to
face meeting, a higher compensation in the form of a free round trip (apart from the credit
provided earlier) should be offered along with some gift hampers.