Option a: While it might sound correct, it is not ethical on the part of the company as it is cancelling a program for which people paid a large amount of money. The cancellations are being made, possibly against the wishes of many customers who still want to use the services of the program and hence the company will lose trust in the market. It would be a difficult call for the company if the program was creating such huge losses that the company itself cannot survive. But the case only mentions that this was not profitable. In business some initiatives are profitable and some are not. Hence, it is not ethical to make the customer, who paid a large amount of money, lose value because the company is not able to make profits.
Option b: This is a valid action and should be the first action that should be taken. If the payment for lifetime travel is not profitable, then it should not be undertaken.
Option c: This is not ethical as the program clearly mentions ‘unlimited’ and hence no cap should placed on the user.
Option d: Again, this goes against the terms of the program and hence should not be taken.
Option e: This is a very valid action that can on one hand keep customers happy and on the other hand also reduce the losses the company might make in the future without actually making the customers angry. (If a new customer buying a product for 20L now is not going to be profitable, then it is a fair financial assumption that even the ones who have used it for a few years will also not be profitable for the airline in the future as it is a lifetime travel program)