There has been a lot of educated commentary about Emirates’ latest A380 order taking the fleet size for that specific aircraft to a total of 90. Though that’s impressive, it’s worth thinking about how dramatically it would change Emirates’ competitors’ business plans.

While we can expect the likes of Air Canada and Lufthansa to seek more protection from their respective governments, the order is likely to dramatically change the airline environment in the Middle East itself. Specifically, Etihad Airways and Qatar Airways – both of which have been closely following the Emirates model – that of connecting any two cities in the world in one stop – will be forced to think about how to compete with a bigger, much bigger, Emirates. Here’s what I foresee happening within a couple of years.

Etihad Airways – if you can’t beat them, join them

I’ve dismissed an immediate merger of Emirates and Etihad previously on this blog, though it cannot be ruled out in the medium term.

James Hogan, Etihad Airways’ CEO has promised the Abu Dhabi government that the airline will be profitable by 2011. Given that Etihad lost $1.2 billion last year, it looks difficult to achieve, with all the competition the airline faces. If he doesn’t keep his word, then his Arab employers may be forced to seek a replacement. And this new CEO would have a tough job at hand – either beat Emirates, or join forces with them.

In the long term, it actually makes sense to combine two mega-hubs that are a couple of hours drive away and leverage upon each other’s strengths, rather than scavenge for passengers. Moreover, the Dubai World Center (DWC) airport that opens this month is perfectly located halfway between the two emirates of Abu Dhabi and Dubai. Most importantly, it will be better for the country of UAE as a whole, to have one strong airline, than one very strong and one potentially weak airline. Just like an AirFrance-KLM is better for France and Holland.

Ultimately though, the final call will be that of the rulers’ of the two neighboring states, and they might surprise us all.

Qatar Airways – can’t join them? Join others

What happens to Qatar Airways’ business plan even if Etihad doesn’t merge with Emirates? They certainly can’t just keep on expanding at the rate Etihad is expanding, or grow to the size of Emirates. What’s the next best option – join an alliance.

Though the three super-connectors have resisted alliance talk till recently, it will be in Qatar Airways’ benefit to join one of the three global alliances. The CEO has already expressed that he’s not averse to being approached by Star Alliance. Moreover, they already have code shares with United, US Aiwarys and ANA. Joining an alliance would help counter the massive scale of Emirates, at least for some time.

Something else that would help Qatar Airways is if they clearly differentiate their business strategy from Etihad and Emirates. They’re already showing signs of this by expressing interest in buying Bombardier’s CSeries aircraft (watch video tour), which would offer them a very efficient short-haul capabilities.

There are lots more ways the competitive environment would change in the Middle East thanks to Emirates, and this is how I see them affecting their closest competitors – Etihad and Qatar. What do you think? Let’s discuss in the comments or over on Twitter (@simpliflying)

In the last two months, I traveled on a dozen different airlines, in three continents. Each with a different loyalty program. And each just a difficult to understand for the so-called “elite” traveler. It seemed that while trying to please an ever-increasing variety of travelers, airlines were creating a veil of confusion before the traveler even signs up for the program.

So then, what should an ideal frequent flyer program look like to make it truly work for the airline brand? Taking inspiration from the best loyalty programs in the world, as well as my own observations from the two conferences in Miami I spoke at last week, here are some thoughts.

What would make me a loyal traveler with an airline?

1. Simplicity – How often do you know exactly what you can redeem from the points earned from your next flight? What if it was as simple as for every $1 spent, you will be able to redeem $0.01 off your next ticket or a partner purchase? I think keeping the earning-burning process as simple as possible would attract many more customers for the airline’s loyalty programs, than currently possible. I think Westjet’s new loyalty program s doing a good job at this.
2. Comparability – Most travelers these days are part of multiple loyalty programs. When I choose to be “loyal” to an airline, I would love it if at the time of booking, I’m shown how many miles I’d earn on that specific flight, as compared to the competing airlines (which I can choose), and what can I redeem those for? This would boost retention, because more customers would “stick” to your loyalty program, than others’. I’m yet to see an airline that does this well.
   



3. Extensibility of benefits to beyond the airport and the plane – Currently, benefits are concentrated in priority security lines at airports, airline lounges and optional upgrades in-flight. How about cultivating new touch-points in the travel life cycle where the elite travelers are pampered online and offline before even traveling. How about allowing them to earn points if they “check-in” on Foursquare at the airline office, or building a travel app like Lufthansa’s MySkyStatus that offer true value to the customer? Airlines like Qantas (screenshot above) and Etihad are venturing in this space.

So, what’s your favorite FFP and why? What would your ideal FFP would look like? One that can be offered by LCCs as well?  Let’s discuss in the comments or over on Twitter (@simpliflying)

This year, I’ve been fortunate to interact with key executives from COPA Airlines – one of the most consistently profitable airlines in the world. And in all the conversations, I sensed a distinct focus on the customer, which makes this airline so successful.

COPA’s keys to success

Here, I’ve included two interviews that shed light upon their keys to success – from a branding and e-marketing perspective. In summary, here’s what I’ve learnt from COPA:

1. Don’t fight the price war – it’s a bottomless pit
2. Focus – on the customer, on the product, and not only on competition
3. The brand is the asset – never compromise on it
4. Always keep metrics in mind, even when it comes to branding

Interview with the Director of eBusiness – Frank Kardonski

The first interview is with Frank Kardonski, the Director of eBusiness at COPA. He sheds a lot of light into how a well-thought out online strategy complements the strong brand fundamentals of the airline, making it one of the most profitable in the world. Here’s what he had to say:

• The new COPA.com – makes it attractive to a widespread customer base. Customized portals for regional markets, like Brazil, Colombia or Panama. Auto-IP recognition (2:30)
• eServices – Online check-in 36 hours prior to departure, a positive experience that keeps the customers coming back
• New technologies have taken the traditional technologies and taken them a step further – it’s a conversation, as opposed to a broadcast (3:10)
• Focused on getting the full juice out of traditional marketing (4:39)
• “Thank goodness for the measurability of the Internet” – heavy focus on metrics (5:03)
• Product that is relevant and appealing – connectivity between major and secondary cities, combined with the product focused on the Business traveler, from in-flight to OnePass

Interview with the Director of Marketing – Marco Ocando

The second interview is with Marco Ocando, the Director of Marketing. Marco comes from P&G and knows very well how to market commodities. And now that airline travel is a commodity, he fits perfectly in the picture. Here’s what he has to say:

• “Marketing is marketing is marketing” – Airline marketing as FMCG marketing – they’re all commodities (2:10)
• Focus on what the customer wants, and turn that in to an offering (2:35)
• “You’re doomed to disappear if you don’t differentiate” (3:10)
• No domestic flights, but Panama as the hub of the Americas (1:20)
• How COPA manages to charge a premium on their fares, even in this environment, and still maintain load factors (3:25)
  • Customers value operational excellence and impeccable customer service
  • Honor the premium customers
• Continental brand as an asset to the COPA brand (5:35)

So, what do you think about COPA’s success? Is it repeatable? Isn’t it refreshing to learn about such a visionary effort that’s also consistent? Let’s discuss in the comments or over on Twitter (@simpliflying)

Aurelie Valtat is announced as June’s Simpliflying Hero.

The Bombardier CSeries aircraft has not just pushed the boundaries in passenger comfort, but also possesses some of the best technical capabilities among modern jets. I was lucky enough to be led through an in-depth personal tour at Bombardier HQ in Montreal, by Sam Cherry – a Director at Bombardier who knows the product inside-out. And for the first time one the web, SimpliFlying has videos of what would exclusively be shown to airlines when they’re making a purchase decision (on a really cool touchscreen too!)

If you’re an aviation geek, you’d especially enjoy watching this interview as it covers a …

Any branding initiative that doesn’t bring in a return-on-effort is not worth doing. Because then it becomes a hindrance. “Oh, I need to upload the photos onto the Facebook album” shouldn’t end up in deferment of important business-driving efforts. But then again, if uploading photos on Facebook is linked to the business objectives itself, then it’s a different conversation altogether.

At the Online Marketing for Travel Summit in Miami, I am shared my ideas on how travel firms (not just airlines) can drive conversion in online and social marketing. These are the slides from that presentation, with three specific ideas.

Converting Youtube …

Back from the future
19 May’10 || Aircraft Interiors Expo Magazine
What would air travel be like tomorrow, if airlines start using the latest social media tools today? asks Simpliflying.com chief executive Shashank Nigam… read more
Jetstar and Tiger battle for Southeast Asian skies
19 May’10 || FinanceAsia
…“Differentiation in Asian markets is key, because prices are almost always the same (for the low-cost carriers) on most routes, unless they have a monopoly,” said Shashank Nigam, an airline marketing and branding strategist and chief executive of airline blog Simpliflying. “Ultimately, brand differentiation matters. And, if the …

AirAsia’s India market entry has recently created waves and lots of discussion about what this means for the future of the industry in India, specifically local airlines. I was interviewed by a leading business newspaper in India on this, and here are excerpts from that interview.
How do you think Air Asia permeates a market and wins it? Some interesting anecdotes?
When it comes to new market launches, AirAsia is one of the most innovative, not just in the region, but in the world. And I can say that confidently, having worked with a lot of airlines around the world. They don’t …

• What might air travel be like tomorrow, if airlines start using the latest social media tools today?
  
  
  
• Exclusive Video: Bombardier CSeries cabin tour – a glimpse into the future of flying
  
  
  
• [Infographic] Five steps to successful crisis management for airlines, in the age of social media
  
  
  
• SimpliFlying in The Media: FinanceAsia, USA Today and Aviation Security International
  
  
  
• The Future of Personal Wireless IFE – in the age of the iPad