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On September 12, 2008, Air New Zealand flew from Auckland to San Francisco in what 270 passengers believed was just a regular flight. But just before take-off, they were informed that they were part of an experiment to fly “green”.

By the end of the flight, the experiment cut waiting time, trimmed flying time, saved 1,200 gallons of fuel, eliminated 30,000 pounds of harmful carbon emissions and took a quieter landing approach at San Francisco International Airport, according to the LA Times.

Flying “Green” to lower costs

In an era when airlines are struggling with high costs, Air New Zealand demonstrated to that there is no need to ruin already floundering airline brands by nickel-and-diming customers in order to increase profits. Flying “green” saves substantially more costs compared to increasing profits by measures like charging a baggage fee. In fact, cost savings from less fuel consumption might just be passed to the customer by some airlines in the future.

Moreover, building an environmentally friendly brand resonates better with customers better too. In December, Air New Zealand plans to fly a Boeing 747 jumbo jet partially powered by fuel refined from the seeds of the jatropha, a type of fast-growing weed.

The airline’s environmental efforts are “consistent with what motivates people to come to New Zealand,” Chief Executive Rob Fyfe said.

How can other airlines learn from Air NZ on flying “green”?

In addition to flying the “great circle route” – the shortest distance between two points, here are some key steps Air New Zealand took in this flight to be kind to Mother Nature and save substantial costs – most of which can easily be duplicated by other airlines.

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Boeing 777-200ERImage via Wikipedia

When airlines across the world are cringing due to rising costs and reacting in a knee-jerk manner, hurting both employees and customers, Air New Zealand (ANZ) has taken a bold step in customer service practices and introduced an in-flight concierge on board. The concierges will commence their new roles flying the airline’s London to Los Angeles route, and later operate on flights out of New Zealand. The concierges will be providing a range of services, from travel advice to assistance with onward bookings, to all Air New Zealand’s passengers in the plane, regardless of the class they are in. They will be dedicated to assisting customers with questions and will have no additional roles.

Great for customer retention

This initiative by ANZ is worth a standing ovation. It reflects tough adherence to company standards, even in times of crises. It is such distinguishing services that will make the customer feel the center of the universe – a key to success in service industries. Hotels like Ritz-Carlton to a great job at doing this, and now ANZ might possibly achieve that too. This initiative would be great not only for retaining customers but also win over new ones from competition.

Clear brand leadership

Providing a level of personal service that regular in-flight attendants at other airlines may find it difficult to match, ANZ is taking service to a new level. They are perfectly applying lessons from Blue Ocean Strategy, which talks about fighting the competition on a new plane, on your own terms. If ANZ executes well on what’s touted as their “walking wikipedia”, they would have led the way in building a strong brand, by providing unmatched levels of customer service, on board their flights. Such leadership is what paves the way for a Brand X-Factor – something that puts an airline in a class of its own.

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