4 Business Letters

ENGL WBA or WBB

September , 2013

BAD NEWS NEGATIVE ANNOUNCEMENT

For this assignment you are the executive assistant to the president of EconoAir Airlines. The company began operations two years ago and has made great strides in its short existence. At the beginning, it offered various incentives to lure passengers. Apparently, the incentives worked since currently the company is entrenched in the travel business.

In spite of solid growth, however, EconoAir has been experiencing problems due to increased competition in the industry. Profits have been declining. President Smith is determined to turn things around by taking steps to avoid the problems experienced by other airlines.

One of the impending cuts is its incentive program, “Double Mileage” award in its Frequent Flyer program, which gave two points rather than the conventional one for every mile flown. “It’s time for us to get back to reality” The president says.”We must reduce this award to one point for every one mile of travel. That’s what the other airlines do. The double mileage is costing us too much.”

He assigns you the task of writing members of the Frequent Flyer program announcing the change in the program. Your problem is a difficult one. EconoAir is reducing its rewards primarily to save money. The members of the plan have nothing to gain from the change. So how will you explain the new policy? How do you appeal to the members sense of reason? You will have to think through the situation carefully , then write the announcement.