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India’s leading private airline, Jet Airways has just decided to sack 1900 employees following their wide ranging alliance with Kingfisher Airlines. The move is intended towards cutting costs for the carrier struggling with high costs in an unfavorable economic environment. But that’s stuff everyone already knows about.

Here’s something interesting I encountered this morning. A leading Indian news website, Hindustantimes.com carried the story of this sacking, along with pictures of protesting employees. Ironically, there was a Jet Airways banner advertisement placed right next to that news, introducing their new flights between Bangalore and New York (which also may just follow the San Francisco flight into oblivion). Be sure to check out this interesting post on another blog, with a similar issue about the A380.

Isn’t it so interesting? How do you think airlines can save their brands from such incidents like above? We all know that with the advent of online media and Web 2.0, it’s difficult to control consumers’ comments. But advertising on a news site like this - that can certainly be controlled, isn’t it? But how? Let’s hear your thoughts in the comments section…

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Image by caribb via Flickr

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Innovative products and services - the key ingredient for strong brands - ooze out all the chart-toppers in Conde Nast Traveler 2008 airline rankings released recently. Last week, in an interview with this blog, Gary Leopold, the CEO of ISM Boston shared that “the product is the brand”. This certainly holds true for for the top few airlines in each category. Below, we’ve pointed out what the top two airlines in each category do right, that makes them so good.

Surprise! in the air

Before we get into what the to airlines do right, how about pointing out some surprises about this latest ranking? Interestingly, Singapore Airlines operates only one trans-Atlantic flight (Frankfurt - JFK), and yet they are in the top two airlines on this route. Even though they don’t use their latest and best planes on this route, the great brand leverage they’ve built for themselves continues to give them lots of mileage on this route.

Where are the US airlines? Bad product + Bad service = bad brand!

………

The US airlines are glaringly missing from the international rankings, but even in the domestic US rankings, where are the biggies? Right at the bottom. Only Continental is in the top three, and Delta just peeks in at the fifth place. Where is United Airlines? Where is American Airlines? Where is Northwest Airlines? The fact that these airlines are missing further enforces the importance of having a strong product to build a strong brand in the airline industry. Will the US airline industry ever get back its mojo? We wonder… May be the rest need to learn from the upstart, Virgin America, which has topped the ranking in just one year!

Here are some rankings from the annual Conde Nast Traveler business-travel awards 2008:

Top Trans-Atlantic Business Class

Top Trans-Pacific Business Class

Top U.S. First and/or Business Class

• Why Virgin Atlantic Airways is not “on the brink of collapse”
• Travel+Leisure ranks Singapore Airlines, Emirates and Thai Airways as the best in the world
• Is business-class travel going extinct? Part 1 of 2
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Image via Wikipedia

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Emirates Airline has placed the largest order of the largest plane in the world. They will eventually have 58 A380s - one third of the total orders Airbus has received till date. Their first A380 that flew from Dubai to New York City on Aug 1, 2008 dazzled everyone with exclusive showers in the First Class and a plush bar for Business Class, along with an overloaded in-flight entertainment system across all classes. Luxury and novelty was the name of the game. But will this last?

Three questions for Emirates

1. Once Emirates has 58 of these double-decker planes flying around the world, will they still be able to maintain such high product standards across the fleet?
2. How will service consistency be ensured?
3. How will Emirates ensure that the right expectations are set among customers for A380s with different configurations?Emirates VP for the Americas, Nigel Page, doused our curiosity with his forthcoming replies on these issues.

Three A380 configs, Two types of aircraft, Single minded focus on service

………
Nigel explained that “Emirates will have two versions of the aircraft the ULR (Ultra Long Range) with…489 seats [in three classes], and an Intermediate range version with two configurations - a three class version with 507 seats and a two class version with 625 seats.”

So how doest Emirates ensure service consistency on-board for planes carrying anywhere from 400 to 625 passengers? Nigel revealed that Emirates “cabin crew will be trained and licensed to operate all three versions of the aircraft.” To ensure that a consistently high standard of service is maintained, every new cabin crew will be provided with comprehensive training in Emirates’ state-of-the-art training college in Dubai. Moreover, on the ULR, Emirates will carry two cabin attendants to supervise the showers and ensure they are cleaned after each use! Now that’s some dedication.

Setting the right expectation for customers

Given that the Emirates A380 product will vary for in difference markets, Nigel clarifies that “advertising may [also] vary from one market to another dependant of the aircraft type. The configuration will be selected according to route demand. Where there is little demand for First Class we would probably operate the two class version.” The importance of implementing this aspect of the roll-out cannot be over-stated. There is nothing that upsets customers more than stepping into the aircraft only to realize that the product in reality differs drastically from the picture they had in their minds.

So, what’s the key to success? Given Emirates has shown commitment from the outset to ensure consistency of standards across their products, it’s certainly moving in the right direction. But the real test will be when the rubber hits the road (or wings reach for the skies). It’s no small feat to ensure that each passenger gets a consistent experience on a fleet as large as Emirates’. It will be the actual implementation of these plans which will be the feather in the hat, if done right.

What do you think? Can other proactive measures be taken to ensure consistency? Is it as important as we think it is? Let’s discuss…

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Gary Leopold, ISM Boston

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According to ISM Boston’s website, Gary Leopold, their CEO, “not only eats, sleeps and breathes travel, he knows it from the client side.” After having a conversation with him, one would appreciate the completeness of the sentence - and the man.

Not only has Gary led ISM Boston - a niche travel marketing firm - for almost 25 years, he has also been involved in the strategic planning for all accounts, one of them being Emirates Airline. ISM Boston recently won the Emirates account for North America after a review. He was gracious enough to speak to us about the unique challenges faced by airline brands and how they can succeed - both in the US and abroad.

In essence, Gary feels that airlines need to give autonomy to marketing agencies and push them to innovate - like Emirates does. Over the five years ISM Boston has had the Emirates account, they seem to have surpassed their own expectations on the quality of work produced for Emirates.

When asked whether US based airlines can ever regain their former glory, Gary believes that airlines here need to ensure consistency across product, service and the brands will become stronger. Moreover, they need listen to their customers, and come up with innovative ways (and probably new business models) to address their needs. When asked to recall an incident, Gary gets animated while describing how he doesn’t mind sitting on the tarmac on a JetBlue flight, since there is seat-back entertainment and he doesn’t need to miss his ball game. You can watch the full 20 mins video interview below.

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Recently, there has been a surge in online betting on an interesting issue - which would be the next airline to go bust? Below is a screenshot of one of those sites. From the odds, we can tell that FlyGlobespan and SkyEurope are the most likely to go bust very soon, and British Airways and Lufthansa are the commercial airlines least likely to go bust.

So, does that mean that airlines with stronger brands less likely to go bankrupt? It’s a lot about consumer perception and brand equity. Let’s discuss, and hopefully, we’ll reach a conclusion that derives a relationship between betting odds and brand equity!

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Image by James Cridland via Flickr

When compared with other airlines in the region and around the world, Singapore Airlines (SIA) is by far one of the best in terms of product and service. The multitude of travel industry awards over the years is proof of this fact. But things can get contentious when SIA is compared against itself, over time and across products. Let me share a personal experience, and you be the judge.

Impeccable service, differing products

Since Singapore Airlines has converted their non-stop flight from Newark to Singapore to an all business-class configuration, I instead took their other flight from JFK to Singapore, via Frankfurt earlier this month. Upon boarding SQ26 from JFK, I wanted to charge my laptop, but realized that there were no power points in Economy on board the 747 aircraft, as was the case in my previous flights on the A340 aircraft. Moreover, the in-flight entertainment (IFE) system did not work for my whole row throughout the flight from JFK-SIN. Having only flown the Executive Economy from EWR-SIN on all my prior flights from New York to Singapore, this came as a surprise.

A week later, on my flight from Brisbane, Australia to Singapore, the IFE was not even on-demand, with no personal movie controls. Ironically, the Krisworld magazine page demonstrating the IFE functions showed the passenger how to pause and play the movies (see picture below). This caused much confusion among the passengers near me, as they kept requesting the stewardesses for help. Being SIA Girls, they helped as much as they could. The in-flight service was impeccable as usual.

The important question here is what, if any, efforts were made to set the right expectations among the passengers prior to the flight, to minimize confusion or even disappointment? Furthermore, how was the feedback gathered and acted upon?

Singapore Airlines Krisworld magazine showing an on-demand system

Setting the right expectations

To find out more, and to get a balanced picture for this article, I got in touch with SIA’s Corporate Communications folks. I shared with them my experience and had a reply within days, both from the US and Australia offices. I was pleased to see that my concerns were genuinely addressed in the response.

Regarding managing expectations on the New York to Singapore flight, here’s what I was told:

“A critical means of managing consumer expectations…lies simply in the branding of the product itself. Singapore Airlines developed the term “Executive Economy” to communicate the enhanced, special, upgraded nature of the cabin, over and above what is directly implied by the standard “Economy Class” branding that applies to the balance of our fleet.“

In addition to realizing that different expectations were set for the passengers by the way of differently naming the product, I felt the pain of the airline industry with regards to fleet renewal. The Boeing 747 I traveled on should have ideally been replaced by the Airbus A380, if not for the delivery delays. The Boeing 777-200 I traveled on from Brisbane will soon be replaced by the Airbus A330 aircraft. I personally can’t wait to experience the new SIA products on these planes. Here’s what the SIA folks had to say:

“A protracted delivery delay of two years leaves us no other option than to extend leases on aircraft that would have been otherwise slated for retirement, and causes a concurrent delay in installing new cabin interiors and seating products.”

Taking feedback seriously and acting swiftly

It is one thing to respond to customer feedback promptly, but acting upon that feedback is just as important. This is an area SIA aced in as well.

Here’s the response I received regarding the Brisbane flight, demonstrating how swift action was taken:

“I was concerned to read your experience with the incorrect Inflight Entertainment instructions in your KrisWorld magazine onboard the B772. I have conveyed your comments to our State Manager in Queensland and he has subsequently asked his employees to make doubly sure the KrisWorld magazines onboard are relevant to this particular aircraft.”

When I probed further regarding feedback mechanisms, I was also told that SIA is…

“…very happy to respond to customer inquiries and feedback, both prior to departure or after travel. We welcome comments and have established numerous feedback / inquiry mechanisms including telephone, mail and internet. In order to ensure customers are well informed, Singapore Airlines also works extensively with travel agents to inform them about the different products and aircraft in the Singapore Airlines fleet.“

I was impressed by the response, but didn’t want to take it on a face value. Hence, I scoured various aviation forums, blogs and websites trying to find some evidence that SIA indeed responds to customers whole heartedly, and I found a gem of an example. In Nov 2006, an aviation enthusiast had asked SIA the reasons for changes in their livery, and received very concise responses. Now, that is truly remarkable - to be able to dedicate resources to handle customer (or soon-to-be-customer) inquiries in the earnest.

So, is Singapore Airlines still a great way to fly?

Even though there were product differences in some of the planes, the feedback responses I’ve received as well as the best-in-class service certainly makes me want to go back to fly with SIA again. But let’s do a quick brand evaluation on SIA based on these incidences, using relevant levers from the 6X branding model.

Brand eXpectation: There was certainly an effort to set differing expectations for different products, but a slightly better job could have been done of informing passengers about the differences (after all, I probably wasn’t the only passenger surprised on that flight). Score: 8/10

Brand eXperience: SIA would get full marks for service, but the fact that the IFE system failed to work as expected would pull down the product experience points.  Score: 7/10

Brand eXpression: This relates to how well the company interacts with the customers pre and post-flight. This, as evidenced above, certainly deserves top rating. SIA has hired good Corp. Comms people, and set high standards for them to achieve. Score: 10/10

Brand eXternalities: As I realized, SIA and other airlines have to deal with externalities like the delay of new aircraft deliveries. This requires them to prepare in advance for such events, be resilient in case things go wrong, and manage customer expectations well. Here, from what I’ve learnt from the above interaction, SIA doesn’t do too badly as well. Score: 8/10

A total score of 33/40 is still very respectable, especially since we haven’t taken into account Brand eXecution and Brand X-factor - both of which SIA is likely to ace. SIA is indeed, still a great way to fly.

I’ve given my verdict. What do you think? Where is the room for improvement? What can others learn from SIA? Let’s discuss…

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Image by msmail via Flickr

Some of us have jobs important enough to fly business class frequently. Are the rest of us destined to be packed into cattle class unless we pay an arm and a leg for business? Not really, even when it is generally getting more difficult to earn and claim Frequent Flier miles.

But frequent fliers are often pampered by the airlines in a variety of ways. So why not try out a few interesting techniques to be taken good care of in the air? Here are five ways the clever people earn and use their miles, especially for upgrades.

1. Just Fly It!

The fastest way to earn an upgrade is to earn miles, especially if you fly frequently. A return trip from Singapore to New York on Singapore Airlines economy class generates nearly about 20,000 miles, not far from the 30,000 miles needed for a one way business class upgrade, or a free economy ticket to Hong Kong. Stick to one major airline, or network such Star Alliance or One World. Do take note that super discounted fares may appear attractive but do not usually qualify for miles accruing.

2. Splurge on Regional, upgrade on International

Passengers may want to consider paying to fly premium on regional routes and using miles to upgrade on international routes. This is simply because the costs are so much more manageable. The actual price difference between an economy and business ticket begin to widen with trip distance. Yet flying comfortably is so much more important on long hauls. Splurging on regional and upgrading on international reduces costs substantially. However, this would not work if the majority of the sectors that the passenger is intending to fly are long haul.

3. Swipe your way to an upgrade

Co-branded credit cards are common and available across the globe for major airlines. Singapore Airline’s most premium credit card, the American Express Singapore Airlines PPS Club Platinum card, earns a mile for every dollar spent. To earn a trip from Singapore to Hong Kong, the card holder would have to spend S$30,000 for a return ticket on economy class. While credit cards can be useful to top up that few thousand miles that you need for your next Business ticket, depending on credit card alone for a fee ticket, or even an upgrade could take ages.

4. Cheap Skating

The underlying theory is simple; Fly the business class with the lowest price on the airline in the same network, earn the miles, and splurge it on the upgrade somewhere else. For example, Singapore Airlines charges well over S$3,000 for a business ticket from Singapore to Hong Kong. United’s business on the same route is about S$2,100 while Thai charges about S$1,800. The theory is to fly Thai or United on business and use it for future upgrades on Singapore Airline for maximum returns.

5. The Long-Hauler

Many airlines have recognized that there are a group of passengers who are unable to afford a full business class ticket, but willing to pay a little more for more comfort. Premium economy has evolved into a market of its own to target full fare paying economy passengers willing to pay a little more for more comfort and space. For self-paying long haulers, this could be the most value for money option. Most airlines offer generous seat pitch of around 38in and a dedicated attendant to offer better service. A 20-50% premium is usually charged over economy seating, which is a steal, considering that a business class may cost 5-8 times over the economy ticket. Qantas new premium economy, for example, is well worth the money. Do take note, however, that premium economy is usually housed in a small section and seats do run out quickly. So book early.

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Emirates Airlines First Class

First available on its A340-500, Emirates’ suites presented a novel idea of flying – enclosing the passenger with a door to create ultimate privacy. Although the seat is smaller and narrower compared to the newer SIA’s suites, Emirates’ suites are more elaborately furnished and still one of the world’s finest way to fly. Emirates wins my applause in providing showers for First Class passengers on-board their A380. Safety issues aside, I cannot recall how many times I had wanted a shower on a long flight before I settle down to sleep. A novelty with a strong dose of practicality – one of the few things rarely seen from Emirates in these days. Privacy: 9/10, Space: 7/10, Novelty: 9/10

Smaller but very tastefully decorated private suites on Emirates

Singapore Airlines First Class Suites

Available only on the A380, the Singapore Airlines Suites are slightly wider and larger than Emirates’, the pioneer to a room-suite seating concept on a major commercial airline. The 35in-wide seat transforms into a 27in by 78in bed. The ultra rich can opt to book one of the two pairs of adjacent suites and transform a pair of suites into a huge room with a double bed. The doors, however, are translucent and do not extend to the ceiling.  Privacy: 8/10, Space: 9/10, Novelty: 9/10

Japan Airlines

International First Class on Japan Airlines is a novel concept. The seat is not particularly stunning on paper – measuring a mere 26in-wide with a 79in pitch, transformable to a flat bed. The novelty, however, lies in the seat layout. Japan Airlines have arranged for a unbelievable 1-1-1 arrangement on the wide cabin of 777, which puts Singapore Airlines’ new First Class to shame. This creates a huge expanse of space for the passenger and the feeling of utter exclusiveness. Using loads of space to create privacy in turn – is an art onboard JAL. Privacy: 7/10, Space: 10/10, Novelty: 8/10

The vast expanse of space onboard JAL’s First Class

Cathay Pacific First Class

Like Japan Airlines, Cathay offers a whopping 1-1-1 seating on its 777-300ER. The seat, at 36in, is even wider than SIA’s suites. Despite the seat being much larger than JAL’s, Cathay traded privacy for the sense of spaciousness that is so artistically presented by JAL. Nevertheless it is still a show of pulling out all the stops in defining today’s luxury flying. Cathay Pacific’s first class seats also come with massage capabilities and the seat gently converts to a chaise lounge as well as a totally flat bed. Privacy: 7/10, Space: 9/10, Novelty: 7/10

Cathay Pacific First Class with massaging seats

Which are your favorite First Class products? What about US and European carriers? Would service matter more or products is supreme when it comes to First Class? What do you think? Let’s discuss…

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Given the significance of being one of the first few airlines to operate the Airbus A380, and since it will once be the 2nd largest operator of the A380, it’s a mystery why Qantas has not capitalized on this event to build its brand further. Moreover, given the recent negative press generated by the string of Qantas safety lapses, there is an urgent need to repair the damage done.

How did Qantas miss this golden opportunity?

1. Lack of radical product innovation: The four classes Qantas product for the A380 are not a radical improvement from its existing fleet of wide body planes. Moreover, the peculiar seat color choices make the cabin look dull. This, as opposed to the double-bed suites introduced by Singapore Airlines for First Class, and showers as well as a bar introduced by Emirates for First and Business Class, in their A380 planes. Both of these airlines took full advantage of these product innovations and marketed themselves well – rightly so.
   
2. Retracting some service features: Qantas has shelved plans to offer live internet access on its A380 planes from next month as American Airlines comes under fire from customers and flight attendants for allowing passengers to surf porn websites. Last year Qantas general manager John Borghetti was talking up the inflight entertainment system on the A380s, saying “there has never been anything like this on board a commercial aircraft”.But the lack of a full internet service will most likely disappoint many passengers who will have to make do with a limited selection of “cached internet content”. This will be a turn off for some passengers, who were probably looking forward to being connected while they cross the Pacific. Moreover, there is little official explanation given to why the service was retracted.
3. Lack of customer engagement and buzz at launch. Singapore Airlines created an eBay auction for its first A380 flight. Emirates treated an exclusive group of VIPs and media folks to a joy-ride once they landed the big bird in the US. Qantas, ironically, is keeping the event pretty low-key. In an official response from Qantas, this blog was told that, “Much of our media related activity around the delivery and entry into service will take place in Australia, with a very small contingent to be in the first flight on 20 October.” But why? Why not leverage this special event to build the brand further and engage the customers? We wonder.

What can Qantas do now to leverage on the A380 launch?

It’s probably too difficult and expensive to overhaul the product right away. So, it’s got to be marketing what they’ve got well. May be Qantas can play up the fact that they will be the 2nd largest operator of the largest commercial plane in the world. May be they can highlight their in-flight service and the new uniforms. May be, they can come up with better advertisements showcasing their A380 product features – and not just the plane from the outside.

What do you think? How can Qantas lift up their brand image with the first A380 take off in Kangaroo colors? Let’s discuss…

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• Emirates A380 inaugural flight to JFK. Live coverage on August 1, 2008.
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Which of the first few airlines operating the Airbus A380 have come up with the best advertisements? You be the judge. Personally, I’d rate Emirates’ and Singapore Airlines’ advertisements far above Qantas’.

Singapore Airlines Airbus A380 advertisement

Emirates Airbus A380 advertisement

Qantas Airbus A380 advertisement

• Three reasons why Qantas missed a branding opportunity with A380
• Interview with Emirates VP Nigel Page on the A380 flights to JFK, SFO and LAX
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