The benefits of crowdsourcing, and its effectiveness for problem solving, are well-known. The power of the social web is being harnessed by airlines more than ever (in fact, a cargo-carrier has recently got into the game as well). Crowdsourcing initiatives are now being used not  just to engage customers but also to find ways to improve their product and services, as well as at the same time building their brands. Hence, “crowdbranding”.

With today’s Top 10 case-pack we would like to highlight some of the best examples of airline crowdsourcing. At the same time, we also invite our readers to have a look beyond the surface and into the deeper strategic goals that drive each of these strategies. In some cases it will be clear that the end game was indeed solving a problem or finding an innovative way of addressing existing issues, but in others it will also be clear that the stated goal of the crowdsourcing campaign wasn’t the only goal.

Most of the airline examples included in this Top 10 used crowdsourcing to solve problems related to visible parts of their product such as in-flight meals or routes, and did so in very “socially active” ways, using their social media pages and often creating dedicated websites where participants could interact.

Looking deeper into the reasons that drove these airlines to choose crowdsourcing, we found that the most common goals were:

1. Solving a particular problem
2. Reducing costs
3. Associating their brands with a specific concept (for example: quality or low prices)
4. Obtaining first hand-data from their community of users
5. Promoting a new feature/product/route

With this teaser, we’ll leave you to discover how some of the best airlines in the world harnessed the power of the web in the most tantalizing and innovative ways possible.

• Loyalty 2.0 | The Top 10 Social Loyalty Initiatives by Airlines
• The Top 10 Twitter Initiatives by Airlines
• The Top 10 Viral Videos by Airlines (plus bonus videos)
• Top 10 Travel Distribution Initiatives by Airlines: Reinventing the booking cycle to drive revenue (from #eftamerica)
• Mobile 2.0 – The Top 10 Mobile Apps by Airlines

The future is mobile

Given the rapidly changing interactional/behavioural habits of the traveler, it has become important for airlines to target them where they can be found. Close your eyes and think for a moment about what the word mobile phone means to you: I’m quite certain that most of the readers here will at once think of an iPhone, Android phone, Blackberry or a similar device. It seems that the growth of social media – Facebook and Twitter primarily – as a valuable engagement tool to drive business goals has only helped create a more complex landscape. The growth of iOS and Android (especially iOS which is not just available on phones but on iPods and iPads as well), coupled with the ability to create custom apps to target customers and offer them value-added services right on their cellphones has changed the way airlines are thinking about customer engagement and driving revenue, customer service etc. In the past we’ve illustrated how mobile has been an important part of various airline initiatives in the social era: travel distribution, social loyalty and location-based-service initiatives. However, this case-pack deals purely with how airlines have specifically created mobile apps (in particular, on the iPhone and iPad) to engage customers while driving revenue and customer service as well.

Before we move on to the case-pack, here is a checklist of ways in which airlines have tried to differentiate their apps while offering value to their customers:

1. Booking: Some airlines, such as Turkish Airlines, have made it ridiculously easy to book tickets from within the apps in a crazily small amount of time. Customers love it of course: the easier and quicker you make the booking process, the more likelihood that the sale will be completed.
2. Convenience: British Airways allows boarding by flashing the QR code powered boarding passes that can be shown directly from an iPhone. Way to go paperless!
3. Travel inspiration: Lufthansa and KLM have created apps that are excellent at making the users of their apps drool at the prospect of travelling to delicious destinations on these airlines.
4. Complimentary travel services: A number of airline apps now allow customers to rent a car, know the weather and do more at their destination that is not strictly airline-related.
5. Augmented reality: A new player but one with huge scope for engaging the customers who’re usually more than happy (and mostly fascinated) to use the service for things such as navigating an airport or finding places to redeem loyalty points (Qantas).

That’s it, for now! Enjoy the case-studies!

Do let us know what you think of this Top 10 case-pack. Comments, suggestions, brickbats are all welcome in the comments section below. Alternately, you can tweet us @simpliflying.

• Top 10 Travel Distribution Initiatives by Airlines: Reinventing the booking cycle to drive revenue (from #eftamerica)
• The Always Connected Traveler – how mobile will transform the future of travel [Infographic]
• The Top 10 Viral Videos by Airlines (plus bonus videos)
• [Infographic] How mobile is re-shaping travel distribution (gasp!)
• Customer Service 2.0: Top 10 Airlines and Airports performing Customer Service through Social Media

The innovations begin

When airlines initially began their adventure on the socialscape, it was all about about feeling their way about on the social platforms of their choice. The primary focus at the outset was first, discovering how to drive traffic and building a fan-base, followed by the more important aim of utilizing the platform for customer engagement and provide them a real-time medium of information-dissemination and customer service. Slowly, however, they realized that social platforms could also aid them in driving revenue. Flash sales, deals and contests became popular to attract more customers. However, the real innovations were still some time away.

A changing landscape

That time, it seems, has finally come. Airlines, more than ever before have realised that the social web can be utilized to change and influence the booking behaviour of patrons by incorporating their preferences, habits and social circles into the booking cycle. Slowly, we’re beginning to see the true emergence of the New Traveler Life Cycle which can be split into 5 parts: dreaming, validating, booking, travelling and sharing. Airlines have begun to recognize that the booking portion of the cycle alone might not be sufficient to draw customers to themselves. Hence, they’ve begun to incorporate the other portions, in various combinations, to their travel cycle. Our latest case-pack illustrates how airlines are effectively doing this.

Some key points about Travel Distribution emerging from this case-pack are:

1. Online Travel Agents (OTAs) are slowly losing ground as airlines increasingly attract customers to book through their own portals. eg. Delta’s Facebook booking engine is a neat “push strategy” to get customers to book without moving away from their favourite social network.
2. Immersive apps that aid in the dreaming, planning and booking process will not only be addictive travel planning tools but also great brand-builders by wowing patrons. eg. Virgin America’s chrome app.
3. Mobile (and tablet) apps are set to go huge. Whether it is managing bookings or redeeming frequent flyer miles or even checking in without a paper boarding pass, mobile apps will rule the next wave of social airline strategies. eg. British Airways’ cool iPhone app and Lufthansa’s iPad app.
4. Incorporating customers’ social graphs into the booking cycle could pay rich dividends by unleashing a “social multiplier effect”. Knowing which friends are in cities you could fly to (Alaska Air) and choosing seats alongside friends (Malaysia Airlines) are just some of the ways in which booking behaviour of customers can be influenced.
5. Flyers will always be deal hunters looking for the best (in other words, cheapest) fares. LAN Airlines’ Fall Sale, JetBlue Cheeps and Melbourne Airport’s cheap Twitter fares are prime examples. Also, even though the jury is still out on this one, Groupon type sales will continue to be effective in the short-term at least (ie, until they can be sustained).

Without further ado, here’s our case-pack on the Top 10 Travel Distribution Initiatives by Airlines. Enjoy!

You can find more of our Top 10 case-packs here.

• Mobile 2.0 – The Top 10 Mobile Apps by Airlines
• Socializing the airline booking process – Germanwings follows Alaska Airlines’ lead
• The Best Airlines in Social Media: the Top 7 nominees for the SimpliFlying Awards for Social Media Excellence 2011
• Best Airports in Social Media: Top 5 Airports nominated for the SimpliFlying Awards for Social Media Excellence 2011
• [Infographic] How mobile is re-shaping travel distribution (gasp!)

The Turning Tide

Undoubtedly, social media offers many benefits versus traditional forms of engagement. Some of them do bear repetition: the near-instant form of communication; two-way interaction compared to broadcast messaging; the ability to spread messages very fast across networks; the potential to identify and target “brand advocates” to drive brand awareness in cults (see Cult Relationship Management). We’ve strived to point out that a presence on social is media is not sufficient to do wonders for the brand: given that almost every airline is now on social media (our Monthly Airlines on Twitter report offers some numbers) brands must not only differentiate themselves but also focus their efforts on driving specific business goals. If they don’t, they’ll be relegated to the backwaters of social media.

It turns out that our ceaseless advice and suggestions have not gone unheeded. More airlines than ever before are now using social media as a platform to drive business goals such as crisis management (see our recent case-study on Delta Airlines), revenue (examples abound in our Top 10 series) and now, a much more challenging aim, to drive loyalty via social media.

You should create a loyalty initiative for your airline too!

The challenge in creating a social loyalty initiative is that you really need to be sure of what will click with customers. After all, the goal is to increase loyalty which requires reciprocation from the customers. The good thing is that there are potentially infinite ways (if you’re imaginative enough) of creating a successful initiative. What you need to keep in mind is that most customers will become more loyal based on two things: rewards or recognition (or both).  Our case-pack will illustrate the diverse ways in which this is being done by some of the major airline across the world.

The benefits of creating a successful social loyalty initiatives are manifold:

1. A brand advocate with a strong social network could act as a huge multiplier for your loyalty efforts by getting members from his network involved with the brand.
2. There is a huge opportunity to move away from traditional loyalty programmes and offer something disruptive and innovative.
3. Loyal customers are worth more than new customers (this is true for traditional loyalty programmes as well).
4. The biggest benefit: there is very little lag between implementation and measurement. The results can be seen very quickly indeed.

Without further ado, we present to you our list of the Top 10 Social Loyalty Initiatives by Airlines.

What did you think of this list? Felt we left out someone? Felt this was perfect and want to reward us for our efforts?

We’d love to hear your thoughts! Do join in the discussion and tweet us @simpliflying.

• Is social loyalty the next phase of development for frequent flyer programs?
• [Presentation] Why the future of loyalty programs will be social-media based
• Five Reasons for low cost airlines to take loyalty seriously
• “Crowdbranding”: The Top 10 Crowdsourcing initiatives by Airlines
• Three keys to making loyalty programs work for the airline brand of the future

Two important events took place in aviation today – both of which conjored mixed feelings in me.

1. The British High Court declared illegal the potential X-mas strike by British Airways‘ Unite union. The good news is that this promises hassle-free travel for almost a million BA travelers over the holiday period. The downside is that the union is keen on re-grouping to go on strike early next year.

2. It was the last day at work for Paula Berg, the force behind the successful new media brand strategy of Southwest Airlines for the past decade. She’s leaving to move back with the true love of her life – the mountains. So again, a bitter-sweet news. (Watch Paula’s video interview on SWA’s media strategy here)

What’s the link between Southwest Airlines and British Airways?

“So, what’s the connection”, you may wonder?

Paula had emailed me about her move last week and in her note included 68 reasons why she loved working at Southwest over the last ten year. Can you imagine an employee putting in so much affection and effort while she’s leaving? This only happens when the company has treated her like family.

This is not just something Paula expressed, but also what Southwest’s outgoing President Colleen Barrett confirmed over a year ago in her final interview – that the airline’s prime customers are its employees. And keeping them happy keeps the end-customer happy too.

Now, Southwest Airlines has some of the largest number of employees who’re in a union. But they seldom have employee trouble. Probably because they feel loved and give love back. Whereas at British Airways (and many other airlines), there often seems to be employee trouble. I think two things need to happen here:

1. The airline needs to think more about the employees like family, rather than numbers. If they’ve been promised something, they should be granted it on time

2. The union and employees shouldn’t just think of the airline as a golden goose they can hold hostage on a whim. Think of the long term too. If the Unite strike had gone through during the holiday period, it would have probably brought British Airways to its knees!

And even now, when customers fly British Airways over the holidays, do you think they’d feel the love? Probably not. And this would reflect in their lower service delivery standards too, which already isn’t the best in the world.

Hence, I’d like to share with the world, and especially anyone who works at British Airways, a classic from Southwest Airlines’ Paula Berg , which I’ve sought permission for re-publishing from her email. I hope this warms some hearts and melts some hot-heads and make life better for everyone this holiday season.

Quoted from Paula’s personal email…

68 REASONS WHY I’VE LOVED WORKING AT SOUTHWEST AIRLINES

1. This puddle.
2. The response you receive when you tell someone that you work for Southwest Airlines.
3. Free flights.
4. The People – There are times when I pass folks in the halls that I don’t even know and am overwhelmed with the feeling that any one of these people would give you the shirt off their back if you needed it.
5. Bags Fly Free – It just feels good to work for a Company that tries to do right by its Customers.
6. The Freedom to move about the Company – I love that several of our VP’s began their careers on the frontline – loading bags, working the ticket counter, and servicing aircraft.
7. On business trips with colleagues, I can look around the dinner table and think, “There’s no one else I’d rather be with right now.”
8. Halloween – how many people can say they’ve seen their CEO in platform boots and a cod piece?
   
9. Having a team of Schedule Planners on hand to “optimize” our Halloween performance schedule.
10. The view from the deck.
11. Having a personal weather man to let you know when to head home or hunker down to avoid bad weather.
12. Lunch in the cafeteria always feels like a high school reunion.
13. The Button Man (sometimes known also as The Magnet Man) – because every Southwest event needs a souvenir.
    
14. Hearing the Southwest Choir practice in the atrium behind my office.
15. Casual Dress.
16. Hand-written notes from Colleen Barrett.
17. Kisses from Herb Kelleher.
18. That Warrior Spirit.
19. Parties in the hanger.
20. Rapping, singing, flipping, and beat-boxing Flight Attendants.
21. Aviation bloggers and enthusiasts.
22. Employee lanes at the airport.
23. Eight percent 401k match.
24. Best corporate blog three years running according to PR News (…and if I do say so myself).
25. The Culture Committee.
26. There is no shortage of peanuts or peanut references.
27. There is never a dull moment.
28. The Spirit Jr. Costume.
    
29. This photo.
    
30. Texas – From the hospitality to the maverick spirit, and all the folks that call you honey, sugar, and darling.
31. Southwest swag – like the Southwest Airlines lint roller, the Cargo koozie with the crab arms (“we ship your catch”), the flip-flops that leave the Southwest logo imprinted in the sand, and the Southwest bike (one of these days, I’m gonna get my hands on one of those bikes).
    
32. Fred Taylor and Proactive Customer Service.
33. Employees first, Customers next, Shareholder’s last.
34. 36 years of profitability.
35. Profit sharing.
36. Free parking in the Employee lot at the airport.  With the upcoming renovation of Dallas Love Field, this option in no longer available.  And, technically, being that I wasn’t actually an airport Employee, I was never really supposed to park back there anyway.  But, oh the good ole days!  (NOTE:  To the owners of the red Camero and the black Porsche that are still parked over there, you better move your cars ASAP or you’re gonna get towed!)
37. Crazy email strings – Like the one a co-worker accidently sent to hundreds of people that revealed highly confidential information about a new city.  Doh!  Or the one that someone intended for a few friends, but accidently sent to the entire company, asking what they wanted her to pick up for a Bar-B-Que.  Everyone responded.  Not everyone thought it was funny.  I think you know where I stand on this one.  It still makes me giggle.
38. Weekly emails from Carla looking for her missing mail cart (…I love you, girl!).
39. Daily emails announcing that there is queso, Bar-B-Que, or birthday cake in the breakroom.
40. Parking next to a Boeing 737.
41. That new plane smell.
42. Driving into work with the planes taking off on the runway along Denton Drive.  Sometimes I want to race them, but the potholes and my less than favorable standing with the police always stop me.
    
43. Stuart Thomas’s abstract Halloween costume illustrating RASM and CASM.
44. Countless “Wanna Get Away” moments – like the time I took a fly ball to the chin at the Customer Relations/Rapid Rewards softball game and had to come to work for a week with a black and blue goatee.  Or the time that I split my pants from seam to seam and walked around all day in chaps.  Or the time I walked into a plate glass window escorting Jim Wimberly to a photo shoot.
45. The joy of looking up someone’s phone number in the online Company Directory and discovering a ridiculous employee photo.
    
46. The “no drinking before 5pm” rule.
47. The Freedom to be yourself – In 2002, while working in the Customer Relations Department, I went nearly three months without washing my hair, just for fun. In the third month, my supervisor called me in to his office and gently suggested that I may want to “keep our Customers in mind.”  I love that it took that long.
48. Secret project codewords like Sockeye, Wyatt ERP and Tipper.
49. The crossword puzzle in Spirit Magazine.
50. Brainstorming sessions in the Magic Factory.
51. Mr. Toad’s Wild Ride from Headquarters to Dallas Love Field on the Southwest shuttle bus.
52. On any given day you might see a live Texas longhorn, NBA Legend Bill Walton, the Stanley Cup, or a margarita machine on campus.
53. The Southwest cans of water.  I mean really…how cute are these things!
    
54. Doug Lawson – our resident “Viv Engineer” who, among other things, studies the movements and behavioral patters of animals (like ants, bees, and herds) and applies that knowledge to algorithms that make our airport operations more intuitive and efficient.
55. Linda Rutherford – without Linda, there would be no blog and no Emerging Media Team.
56. License plate frames that say “my other car is a Southwest 737.”
57. Bob Jordan’s Mustache.
58. Sitting on a plane and listening to the folks around you talk about how much they love Southwest Airlines.
59. Amazing people like Bill Owen, Anne Hancock, Brian Lusk, and Carole Adams, who, for me, will always epitomize the Spirit of Southwest.
60. Dallas Love Field – just 15 minutes from my apartment to the gate.
61. Lunch at the PR table.
62. The view from the window seat.
    
63. Getting a thumbs’ up from Gary.
64. Chetto Drafts in the Landing.
65. James Tibbons and this video.
66. The Southwest Communications Department – I’ve spent nearly every work day for the past six years with the same group of people.  They know me as well or better than anyone, and they have loved me, nonetheless.
67. My very good friends, who have taken care of me when I was sick, had me at their homes for holidays, allowed me to loaf on their couches when I didn’t have a television or a home, and were on call to bail me out of jail if I were ever arrested.
68. Bloody Marys on a plane – they’re just better up there.

Much LUV, my friends.

• A Southwest Airlines employee goes out of her way to help a distressed passenger
• Southwest Airlines’ success secrets on social media revealed by Paula Berg
• Three lessons from Jet Airways on how not to treat employees
• Must-have elements for your airline’s or airport’s social media policy
• Southwest Airlines’ President Colleen Barrett confirms in interview that happy employees make a great brand

Why it makes some business sense?

Given that the likes of Silverjet and MaxJet have gone bust plying this route offers a couple of insights. Firstly, there’s inherent demand (we all know that) and that’s why these airlines could actually fly for some time. Secondly, it was largely British Airways and Virgin Atlantic that drove these airlines out of business. That means BA has less competition to deal with – just Virgin Atlantic. And that’s the opportunity.

Why it doesn’t make a lot of business sense?

We all know that OpenSkies is an all-business class airline that’s a subsidiary of British Airways. We also know that OpenSkies bought the French airline L’Avion to expand its business. Moreover, it wasn’t flying London-New York routes, but only New York-Amsterdam and New York – Paris, so as not to compete with British Airways. I feel that when BA decided to dive into the market with an all-business class service, they should have tapped on the OpenSkies brand.

Wouldn’t it be easier to just deploy one of the OpenSkies’ 757s on the route already equipped with Business beds and Business seats? They have a great brand experience that has been developed over time. And there would be no need to re-equip an A318 with Business Beds too.

On British Airways’ all-business flight, weekend leisure fare starts from £1,901.10 ($3,135) return, while the business fare starts at £4,912.10 and the fully-flexible business fare at £5,625.10. On OpenSkies, the fares are much cheaper, starting at just over $900 for Business Seats and at $1100 for flat Beds.

It’s difficult for me to reason out why BA would first start an all-business class airline, then have them acquire a competitor, then start one of its own service offering an all-business class configuration. And it’s bad for the OpenSkies brand too, since people might think that BA doesn’t trust OpenSkies to do the job.

But then again, that might really be the case.

End of the road runway for OpenSkies?

One of the reasons to fly BA metal might be the long term viability of OpenSkies. Willie Walsh, the CEO of British Airways recently indicated that he might consider shutting down OpenSkies, given that it’s still a loss making entity. He noted in the latest edition of BA News that OpenSkies’ losses are small compared to those elsewhere in the company and that “closing it would have no material effect on our financial performance. But the team there knows that it will close if it does not deliver on its business plan”

So it might be the case that BA is thinking of shutting down OpenSkies if in a certain period of time it doesn’t turn a profit (which is very tough in this environment). And hence, instead of risking using the OpenSkies brand to start a new route, they’re taking a safer approach with the longer term in mind.

But frankly, I’m still unconvinced that this route should have been started on BA metal. What do you think? Is this a move in the right direction, or is there more than what meets the eye? Let’s discuss, in the comments section, and on Twitter (@simpliflying).

• British Airways buys L’Avion, dissolving the all-business class airlines industry
• Latest Shock: SilverJet stops flying
• Is business-class travel going extinct? Part 2 of 2
• Is Premium Economy here to stay? A brand review of All Nippon Airlines
• Five lessons to be learnt from airline bankruptcies

What’s wrong? Recession… nah, but surely something else is at play here too.

End of the peak season?

Airline officials argued in a recent news report that the drop was due to the end of the peak winter season. “The fall happens every season from January to August,” said an official. But I’d disagree that the slump can be so severe. It’s the end of the peak season, not the beginning of the low season! So, how can passenger numbers drop from 300+ per flight to just over 100?

The unspoken truth: travel agents’ boycott

The drop in traffic in India is due to a boycott from the travel agents, who have refused to sell Singapore Airlines tickets due to the latter’s refusal to give commission. “We sell around 90% of the airline’s tickets in India. When we stopped selling Singapore Airlines tickets from December 29, the passenger load fell drastically,” claimed Anil Punjabi, Travel Agents’ Federation of India Chairman in a Times of India article.

After months of agitation and deliberations, the Indian carriers like Jet Airways and Kingfisher have decided to five 3% commission to travel agents, but some foreign carriers like Singapore Airlines, British Airways and Delta Airlines have not budged, resulting in the boycott. But why is it such a bad situation, given that a similar policy is followed by international airlines across the western world?

Cultural sensitivity is key to brand sustainability

Many dilemmas in India are created by imitating the Western business models. Zero percent commission was one of them.  In India, travel agents play a vital role in the travel plans of people, unlike in the West, where the penetration, usage and payment gateways through the Internet are well known. Moreover, there are many small travel agents whose earnings solely depend on selling air tickets. The whole issue of zero percent smells of ignorance and cultural insensitivity on the part of airlines.

Hence, even though airlines like Singapore Airlines has a superb brand image in developing markets like India and China, it will do them no good if they cannot keep their channel partners happy. I feel that cultural awarness in developing markets and adopting them reaps good rewards in the long term, even though it may mean greater costs in the short term.

Two pieces of evidence to support my claim:

1. Virgin Atlantic’s latest advertisement in a local Indian magazine “TravTalk” reads: “It’s 5%. We’re 100% sure”. They’re referring to keeping the commissions to 5% for travel agents. Who do you think travel agents will recommend for flights to London from Delhi/Mumbai? Virgin Atlantic or British Airways (0%)?
2. I had featured an interview with Gary Leopold, CEO of ISM Boston, who had designed a very culturally relevant campaign for Emirates’ US markets. They recently won Best in Show, the highest accolade in the industry, at the HSMAI Adrian Awards in New York for their work with Emirates airlines.

So, how important do you think cultural sensitivity is to an international airline’s branding and operational strategy? After my interaction with Indian aviation executives, I certainly feel it’s one of the most important things for long-term success. Do you have other examples of airlines who’ve done it successfully?

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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 more than that, if the merger goes ahead. Both airlines are not only part of the OneWorld Alliance, but also already operate like a single airline on the Kangaroo route between London and Sydney. Their frequent flier programs are in sync and both have similar corporate structures.

The marriage may work with the blessings of the Australian government, which currently has a cap on foreign ownership of Qantas. Importantly for BA, it can tap on Qantas’ low-cost carrier, JetStar, to expand its reach in Asia Pacific as well as leisure destinations in Australia.

There are a number of downsides for this tie-up too, but they have been discussed elsewhere. So, I shall focus on other alternatives Qantas should explore, specifically, Cathay Pacific.

Cathay Pacific may make a better bed mate for Qantas

Reason 1: Complementary routes in growing markets. Just like BA, Cathay Pacific is also an integral part of the OneWorld alliance. But unlike BA, Cathay Pacific has  much better presence in China, one of the world’s fastest growing aviation markets. Also, tying up with Cathay Pacific will give Qantas a much better access to lucrative Asia Pacific – US routes as well – again a growing market. This, as opposed to British Airways’ better access to Africa and Europe, which are mature markets, but the growth rate is much lower than Asia. Also, Qantas’ interest in Africa is bound to be much lower than in China.

Simply put, a merger with Cathay Pacific will allow them to rule Asia-Pacific together. Just look at their existing route maps and you’ll understand what I mean.

Qantas Route map

Cathay Pacific Route map

Reason 2: More focused attention, resulting greater chances of success. BA is already trying to tie up with Iberia and American Airlines. Moreover, there will always be tough competition with AirFrance-KLM and Lufthansa (+Swiss, BMI, Austrian…) to keep BA’s hands full. Hence, Qantas may just become a concubine, rather than a bed-mate.

In Cathay Pacific’s case, it only has the subsidiary DragonAir, just like Qantas’ JetStar. Hence, there are much lesser distractions, which will allow both the airlines to focus on leveraging their merger. This focus may very well result in a successful, long-lasting marriage.

I hope Singapore Airlines and Emirates are watching these developments closely and coming up with their own strategies!

What do you think? Is BA good for Qantas or Cathay Pacific? Or someone else like AirFrance-KLM or even LAN Airlines? I’d love to hear your thoughts in the comments.

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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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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.

Let’s think of a simple scenario. If given a choice, would a business traveler fly across the Atlantic on an old American Airlines plane with service quality not even close to that of Virgin? Or would he rather fly Virgin Atlantic, having their great in-flight product and service coupled with a luxurious lounge (shown below)?  The difference in the brand experience is so huge that customers would think twice before switching loyalties.

Virgin Atlantic's lounge in London Heathrow

Hence, it is a stretch of imagination to say that Virgin Atlantic is “on the brink of collapse”. What do you think? Can a strong brand support a business in bad times? Is Virgin Atlantic indeed in trouble? Or are we thinking too much? Let’s discuss…

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