Thanks to David Parker Brown, I was alerted to a security situation on American Airlines flight 24 (AA24), bound to New York from San Francisco as someone had called in a threat to the jetliner. Thankfully, within a few hours all passengers had de-planed and gone through security checks and no one was hurt.
Crises Management 2.0 – Live on Twitter!
While the situation was unfolding, there were at least two passengers (@cmckella & @jaysears) on board the airplane who were tweeting away regular updates of the situation from their perspective, which included photos of the cabin and cops around the aircraft. Soon enough, major newspapers and news channels were quoting these two for the most current information about what’s happening on-board the aircraft.

Though, it wasn’t long till American Airlines’s Twitter account (@aairwaves) jumped into the middle of the arena and took on the queries head-on. It seemed like they had read our infographic on crises handling through social media (see below), because AA did a good job at it….

If you’re already up and running on Twitter, Facebook or other social media tools, a great way to augment your social media efforts is by tapping on one of the hottest trends around, location based services (“LBS”). Location based social networking is something VERY well suited for airlines. Just like “Tweets” was the buzzword of 2009, by the end of 2010, I expect “Mayor” to be the buzzword. And, these services are made to work well in the travel industry.
Popular Location Based Services
If you’re unfamiliar with LBS, here are a few that are popular, including a couple of travel specific ones:

Foursquare – Foursquare is a location based game/application, where users “check-in” at places around the city.  They get points for check-ins, adding new locations, and extra points for multiple check-ins in one day.  Check-ins can be automatically shared on Twitter and Facebook.  They can also become “Mayor” of a location if they have been there the most out of all Foursquare users.  Friends have access to see where you are, and where you’ve been, which can facilitate social gatherings that might have not otherwise happened.

Some companies are starting to use this application to …

Note: This is a cross-post from Steven Frischling’s Flying with Fish blog. Steven Frischling, aka: Fish, is a self employed photographer, and founder of The Travel Strategist, who has flown approximately 1,000,000 miles since he began to track his mileage 2005.
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Throughout the past year airlines have suffered massive financial losses due to record high fuel prices, a weakening global economy and declining demand for airline seats.

In an attempt to increase their financial stability many airlines in the United States, and around the world, turned to the ancillary revenue generated by charging passengers for their baggage.   As angered as passenger have been regarding the checked baggage fees they have helped major airlines in the United States collect more than US$1,145,385,850 in revenue during 2008…and baggage fees weren’t even initiated by most airlines in the United States until the middle of the second fiscal quarter of 2008.

The fourth fiscal quarter of 2008 saw airlines pull in US$498,600,000 alone!

Checked baggage fees have always provided a significant revenue source for airlines, however prior to the past year this revenue was for excess baggage and overweight baggage. Airlines that do not allow any free-checked baggage, such as American Airlines, now consider all …

American Airlines has recently launched a new flash-animated website where visitors can sample their new Business Class and First Class seats and amenities. It’s tastefully done, and similar to the effort by Cathay Pacific last year.

What’s more impressive is how American Airlines has created a highly personalized email brand campaign to get people to this website. Basically, anyone can increase their chances of winning the lucky draw by recommending the website to four friends. You may think that’s like spamming, but the thinking ends there.

What comes to the inbox is a beautifully crafted email that is highly personalized for the recipient. You’d almost want to jump ahead and click the link. The email is concise, humorous and actionable. Of the three key points they mention, only one is a “sell”, and the others are bound to make you laugh, like “You wish you’d rather win that amazing prize instead of Thomas”.

I’ve taken a screenshot of the email here and distilled the key lessons anyone can learn about email marketing. And with all the spam that we get in our inbox these days, such an email is a breath of fresh air. Well done, AA….

Continuing with the ancillary revenues special this March, I’d like to explore the issue whether ancillary revenues are good for the airline brand, or detrimental. We all know they’re good for the balance sheet, but what about the brand? To answer this question, let me segment ancillary revenues in two bands – charging for value addition, and un-bundling current product and services.
Charging the passenger for value-addition
A comment on the hotly debated article I wrote on RyanAir’s competition for charging passengers got me thinking. Here’s what Shyrose had to say:
“RyanAir should link up with the local taxi companies of the detination airports and agree a deal with them, whereby flyers can book their taxi on the plane so it’s ready and waiting for them the other side. Taxi companies give Ryannair a referral fee, and Ryanair will be positioned as offering greater value service for customers.”
And I think Shyrose is bang-on-target. Customers don’t mind paying for additional services they value. And this is especially true when the offer is in-sync with the brand expectation. There are ample examples of such value addition. Travel insurance and car rental are popular ones. The intelligent …

Image via Wikipedia

I’ve had the opportunity in the past few months of interviewing a number of distinguished thought leaders in the aviation and branding industry over the past few months on SimpliFlying. But a recent encounter in New York has left a deep impression on me, since this brand leader’s ideas truly resonated with what I’ve been writing about technology branding for airlines lately.

I’m referring to my conversation with Joe Crump, the VP of Strategy & Planning at Razorfish – the leading digital branding agency. At one point in the interview, he predicts that “any airline that doesn’t go digital pretty damn quick is going to find itself obsolete”. And he has 25 years of experience in branding and technology to back up his foresight.
Airline branding – “genuinely complicated”
In his interview, Joe shared that the fundamental problem of the airline industry is that “of over-promising and then inconsistently delivering”. And this is mainly because of the number of externalities airlines need to deal with – from fluctuating …

Canadian playwright Raymond Hull is famously quoted as saying that “he who trims himself to suit everyone will soon whittle himself away.” Laura Reis has aptly applied this concept to airline branding, and concluded that airlines need to “do one thing and do it well” to build lasting brands.

Laura Ries is a world renowned branding guru and is the president of Ries & Ries, an Atlanta-based marketing strategy firm that she runs with her father Al Ries – the person who coined the term “positioning”. Together they have consulted with many Fortune 500 companies, including leading airlines. Hence, it is an honor to feature her exclusive interview on airline branding at SimpliFlying.
The power of focus
In this Part 1 of 2 interviews, Laura and I discuss the importance of laser-sharp focus for airlines. She shares the example of American Airlines – whose latest campaign is “we know why you fly”. “Who doesn’t know why a person flies!”, Laura exclaims. American Airlines is a textbook example of unfocused and diluted branding, where a company is trying hard to please everyone, and in the end achieving little.

On …

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Image by pchavali via Flickrllkl
There’s been ton of chatter that Qantas is looking for a bedmate even since the new CEO Alan Joyce took over. Finally, British Airways CEO announced that the airline is in talks with Qantas regarding a potential merger. On the surface, it may look like a good deal, since there are so many synergies to tap on the famed Kangaroo route. But dig a little deeper and you will realize that Qantas may just become a concubine for BA, rather than a trusted mate, and it might just make sense to keep the options open towards airlines like Cathay Pacific.

But before I get into that, let me share my thoughts on why a Qantas and British Airways is still good for both the airlines.
Why QF and BA make a good couple
The goal of mergers is to generally extract value by streamlining operations. But Qantas and British Airways (BA) can probably hope for much …

Although American Airlines posted a $45 million profit in the last quarter, it was only the sale of a financial advisory unit that kept them in black. Otherwise, they’d have lost over $300 million in one quarter. But why? Shouldn’t all those charges for anything that’s not attached to the plane helping boost profits? Apparently not. Since the fares themselves are not just low, but utterly unrealistic and unsustainable.
Shocking prices!
Here’s an shocking discovery I made while searching for fares on Vayama.com. The fare for a JFK-Singapore flight is $800.20 (on Cathay Pacific), and from Boston – JFK – Singapore is $807.20 (on AA + Cathay Pacific). That means the flight from Boston to JFK is merely $7! That is less than the price for a person to get from Manhattan to JFK by subway! Even a regular bus ticket from Boston to New York City is $15. See the screenshots below for yourself.

How is this possible?
Even though both American Airlines and Cathay Pacific are part of the OneWorld alliance, and cooperate …

Image via CrunchBase, source unknown
A recent article on The Sietch Blog claims that Virgin Atlantic is “on the brink of collapse”. The argument is based on Sir Richard Branson’s recent statements in the press about the threat posed by the BA/AA collusion. On this, an un-named source has commented that it reflects that Virgin Atlantic is in trouble.
Whether Virgin Atlantic, and their sister companies Virgin America and Virgin Blue can ride out the storm depends on many factors, but at the moment things are not looking good for the former wunderkind of British industry. The “budget house of cards” won’t stop toppling for some time yet.
Prevention is better than cure
In fact, Branson’s comments show Virgin’s preparedness for the upcoming threat and they are dealing with it head-on. Forbes Magazine revealed in an article that Branson unveiled last Friday the slogan “No Way, BA/AA,” which will be painted on the side of Virgin’s aircraft. This campaign will alert consumers to the “anti-competitive” nature of the proposed tie-up, which Virgin hopes will then indirectly put pressure on American antitrust regulators.
Virgin is a trusted brand
Virgin Atlantic is one of the few airlines in the world with a sound business model (first class service at business class prices) and an outstanding brand image. Most importantly, Branson is an icon people can relate with. Customers trust the Virgin brand, and this brings loyalty. They will not ditch a loved brand easily and Virgin is likely to further strengthen its position an industry leader once this crisis is over.