Archive for February 2009

by Shashank Nigam | February 27th, 2009
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[caption id="attachment_990" align="alignright" width="214" caption="Sam Sridharan, COO, SpiceJet"][/caption]

In the past year, I’ve featured interviews with a number airline executives and branding experts. Here’s one with a person I feel has a very good grasp of the airline industry and is not afraid to speak his mind. In his crisp answers, Sam Sridharan, Chief Operating Officer of SpiceJet, one of India’s foremost low cost carriers, speaks of what makes SpiceJet so good, and why branding is a work in progress.

No Indian LCC has a distinct brand positioning, yet

Sam believes that since LCCs in India are only 3 years old, in the consumer’s mind, they’re all the same. Most of the LCCs are still very price driven, and have not built a distinct brand positioning yet. Full service carriers certainly have cues that come to mind, like Jet Airways signifies efficient service, and Kingfisher Airlines bring forth their flamboyant image. Air Deccan was probably the only one with a strong brand positioning – make the common man fly, but it’s now dissolved.
The SpiceJet Brand
When asked what customers feel the SpiceJet brand stands for, Sam answers, “warmth, Indian-ness, “Masti”(fun) and vibrancy.” SpiceJet …

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by Shashank Nigam | February 25th, 2009
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In this second part of the interview with Sanjay Kumar, the Chief Commercial Officer of Indigo Airlines, we talk about my favorite topic – airline branding. Sanjay believes that branding is all about how customers experience Indigo as a brand, not just how they perceive as a brand. And there is a conscious effort at Indigo to translate the brand promise into a great experience through systematic implementation.
Consistency not only in the sky, but also on the ground
When someone flies Indigo Airlines, what he looking for? Sanjay believes that it’s not a five star flying experience. He’s looking for an easy, hassle-free travel experience. And Indigo lives up to the expectation. Not only do they have Queue-busters – mobile check-in counters that Sanjay mentioned in the first part of his interview last week, but they are also the first airline to have welcome announcements on the “coach” that takes passengers to the aircraft. It makes them feel that the journey has begun.
Why low pricing isn’t sustainable?
Sanjay feels that the current spate of low airfares in India is a short-term phenomenon and it’s a ploy to get …

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by Shashank Nigam | February 23rd, 2009
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Closing off the Indian Aviation Special Month here at SimpliFlying, this week, I’d like to share with you an exclusive interview with Binit Somaia, Director India & Middle East, at Centre for Asia Pacific Aviation (CAPA), based in Sydney, Australia. CAPA is a leader in consulting and advisory to airports, airlines, investors and governments on business and strategic issues. Binit himself is a treasure trove of knowledge when it comes to Indian aviation. I was privileged to have an enriching interview with him on the challeges and future of airlines in India, as well as what branding means to airlines there. So, without much further ado, let me dive straight into the interview.

SimpliFlying: India has a lot of first-time fliers. What’s different about marketing to first-time fliers vs frequent fliers?

Binit: First time fliers may be quite apprehensive, and they require reassurance that the experience will be a pleasant one. Apart from the actual act of flying, in a market such as India flying for the first time can involve crossing social barriers which can in itself be quite daunting. Low cost carriers have made flying affordable for some who might otherwise never have dreamt that they could fly, something which was once a preserve of the elite.

However, apart from Air Deccan, which pitched itself as the common man’s airline (see video below), it is not obvious that any of the other carriers have made an effort to specifically appeal to first time fliers, but end up getting them anyway. Air Deccan’s ethos was built around first time fliers and their marketing included a wonderful television advert that captured the mixture of nerves and excitement that a first time flier feels and portrayed itself as the airline that understood and would take care of such passengers.

SimpliFlying: India is well known for disorganized retail and non-traditional channels. Which are the key channels through which Indian airlines build its brand awareness among the target markets?

Binit: Indian carriers have generally pursued quite traditional channels for brand building, namely print media advertising and outdoor billboards. Television has not been a major medium due to cost. Kingfisher has probably adopted the most diverse approach – the airline has been associated with sponsorship of the Indian Premier League and Formula 1, whilst it also benefits from the fact that Kingfisher is a brand beyond the airline and it benefits from the spin off of initiatives such as the Kingfisher Calendar and promotion of its water and beer. Air Deccan when it first launched made efforts to promote its presence in the smaller towns and villages by sending branded vans into rural India, which also doubled as booking locations.

SimpliFlying: Do you think a strong brand can soften the impact of downturns on airlines?

Binit: In an economic downturn, where people are reducing consumption it’s questionable whether strong brands will prevent travellers from flying less per se. However, individual airlines with strong brands may benefit in two ways 1) they may be in a position to maintain stronger yields because of the value of their brand and 2) in times of uncertainty, passengers may prefer to travel with a brand in which they have greater confidence and trust – therefore a strong brand allows them to increase their market share even though overall industry traffic may be declining.

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by Shashank Nigam | February 22nd, 2009
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Dear aviation and branding enthusiasts,

I have a good news to share with you. I’ve been invited as a speaker at the Aviation Outlook Summit Middle East, to be held in Abu Dhabi from March 3-5, 2009. I’ll be sharing the stage with a number of senior airline executives, like the CEOs of Etihad Airways, Turkish Airlines and Oman Air. My keynote will be on how airlines can use social media to build their brands, based on my recent webinar. I will also be moderating a panel entitled, “Operating a low cost model in a high cost environment”, which will include the CEO of AirAsiaX and Bahrain Air. It is due to all your constant support and encouragement for SimpliFlying that this opportunity has arrived. Thank you very much.

On another note, I’d like to make a special announcement on behalf of my friend and fellow aviation enthusiast, Ron Callari.

If you work in an airline, and have any oversight in your position for SEO, SEM & Social Networking , please consider joining the Airline SEO Executives’ social network. Please click here and sign …

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by Shashank Nigam | February 18th, 2009
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I flew on Indigo Airlines for the first time about three weeks ago. This was a flight from Bangalore to Jaipur, via Ahmedabad, in India. All airline staff seemed to have a spring in their step that morning, from the point of check-in, where I was greeted by a lady smiling ear-to-ear. But the best seemed to be reserved for in-flight.

When the stewardess, Neha Shenoy, came to ask me if I wanted any drinks or sandwiches, she greeted me by name. Yes, you read that right. I was asked, “Mr. Nigam, how’re you doing today? Would you like to have some sandwiches…?” I was bowled over. It was the first time I was being greeted by name, in an Economy Class on a domestic sector in India. Something that’s usually a feature of international Business Class on reputed carriers like Singapore Airlines had somehow made its way to this Indian budget airline. And very simply too. Neha was carrying a copy of the passenger list on her cart, and just read out my name from there. A simple method. But very, very effective. I got a drink from her.

But that was …

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by Shashank Nigam | February 16th, 2009
22 Comments

 

[caption id="" align="alignright" width="285" caption="Image Copyright (c) HowStuffWorks"][/caption]

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Asking for tips in Business Class
Recently, I met up with a senior airline executive in Bangalore, India. He shared with me a very interesting incident. While flying Business Class from London to Delhi on Air-India recently, he encountered excellent customer service by one of the stewardesses. But in Air-India, service levels are not always of a very high level, so this was an exception. She spoke to him for long, served him extra wine and then emphasized multiple times how flight attendants need to work long hours with little pay these days.

She returned before landing to again sweet-talk him into giving her a tip. He was appalled and didn’t oblige. I was initially surprised too, but thought that this might just turn out to be an interesting way to enhance the brand experience on board the aircraft.
Tipping – a norm in the hospitality industry
A tip is a small amount of money given voluntarily as a token of appreciation for a service rendered. We tip our servers as a way of thanking them for good service. We might also leave a very …

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by Shashank Nigam | February 11th, 2009
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Image via Wikipedia

In a startling revelation today, United Airlines announced that it’s closed down it’s sole customer service call center in India. This means that customers will no longer be able to call in to send feedback (positive or negative), as all comments have now got to go through the post (whoever writes those today!?) or in an email.

“Along with the decision to end its association with a third-party contractor in India, United will shut down its current customer relations telephone line and advise customers to write or e-mail feedback about their travel experience.” – BusinessWeek

The only positive I see coming out of this is some consulting offers for Oliver Beale, of the Virgin Atlantic fame, to help write some letters that have an impact. Cutting 165 jobs in India might save some money for United, but the long term damage of not giving customers a way to interact Live with a person from the airline …

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by Shashank Nigam | February 9th, 2009
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Image via Wikipedia

Jet Airways recently hinted that the worst is over for them and they expect to break even again in the middle of this year. And this is mostly because of the drop in fuel prices (obviously!) as well as the prudence shown by the management in cutting unprofitable routes, including that the San Francisco. And I don’t see this as an isolated case.

After my recent interactions with key airline executives in India, including the CEO at SpiceJet, it is my belief that airlines in India will not only be one of the first few to emerge from the recession, but also come out the strongest. Here are three key reasons for this conviction.
1. Airlines that stand by their customers in bad times win hearts – brand matters
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Just look at what’s happening in the western airlines in this recession. US Airways recently started charging for blankets, and they already charge for water (which can …

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by Shashank Nigam | February 6th, 2009
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Re-posting here one of my favorite posts, originally published in early-2008, at the peak of the competition in Indian skies. Enjoy!
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Sometimes, competition can lead to funny outcomes. Here’s what happened at a major crossing in Mumbai, India, when Jet Airways announced their makeover.

If you enjoyed this article, click here to get free updates by email or RSS

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by Shashank Nigam | February 4th, 2009
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Just a few hours ago, Lufthansa raised its forecast for full-year 2008 operating profits from EUR1.1 billion to EUR1.3 billion thanks to a stronger-than-expected fourth quarter. And this comes in at a time when not most major airlines around the world are struggling, but when Lufthansa’s main rivals in Europe, Air France-KLM and British Airways have both issued profit warnings in the past two weeks.

How does Lufthansa defy the trend?
A Lufthansa spokesperson says that lower fuel prices and favorable valuation effects were offsetting a slowdown in traffic demand. But I think there’s more at play here. It’s the formidable Lufthansa brand, that has stood the test of tough times, yet again. A brand that exudes reliability and efficiency

And a strong Lufthansa brand coupled with a vast network in developing markets like India only further helps the cause.

Continuing my series of articles on what makes or breaks airlines operating in India this February, I’d like to share the story of Lufthansa – probably the strongest foreign carrier in India. Below is an article that was recently published in the Indian Express (North America) edition, which comprehensively covers the key …

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