Case Name :      Euro-Air (Revised)

Authors :           Paul W. Beamish

Source :             Ivey Publishing

Case ID :            W15049

Discipline :        General Management

Case Length :    06 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

A North America-based representative of a major European airline has just received a letter from an unhappy customer detailing a very large number of service problems. A quick check had revealed that this premium-paying customer’s complaints were all valid. A meeting is planned with the customer. Before this, the airline representative must decide (A) what to say in response, and (B) what, if any, compensation should be offered. Internally, there was a need (C) to resolve what their organization should learn from this experience, both from a subsidiary and parent company perspective, and the implications on their participation in the Crown Alliance. This case raises many important questions regarding service recovery, communications, and non-equity alliances.