If twenty years ago one had asked an airline marketing executive about the dangers that a bad experience, passed on through word of mouth, could represent for the company’s image and brand he/she would have probably laughed. And with some degree of reason too!

After all, those were the good old days when, if one passenger had a bad experience he would tell his friends and family who may or may not have told a slightly distorted version of the story to their friends and family members… and the story would pretty much have ended there.

However, in the age of Twitter, Facebook and instant 24/7 global communication, the story doesn’t quite end there anymore. Even one annoyed passenger out of a whole planeload has the power to share his experience not only with his friends and family but also with millions of complete strangers who may in turn share it with a million others.  And this time the story does NOT end there.

Moreover, according to recent research, 25% of social media users expect a response within an hour and 6% expect something within 10 mins!

Time to start thinking about social customer service!

Unfortunately, only a handful of airlines and airport seem to have noticed this change, and even fewer have realized that an annoyed passenger could easily be turned into an happy one, as well as a brand advocate, who rather than venting his anger at a million strangers will praise the airline’s excellent customer service response.

There are a number of reasons why offering customer service through social media is an attractive option for both customers and airlines:

1. Customers no longer have to go through the trouble of waiting on the phone (forget the irritating wait-tune) to reach customer-service executives.
2. Being an “open” forum mostly, complaints and resolutions can be seen publicly. This can help a) reassure customers that the airline is serious about customer service; b) help create brand-advocates who can spread the word among their networks about a great customer service experience.
3. The responsive, interactive and open nature of social media helps customers feel more comfortable with asking more questions and getting all their doubts cleared which might not always be possible through the phone. On the flip side, the airline can also understand better what exactly are the most common issues worrying customers and how their service can be improved.
4. Apart from the benefits social media undeniably provides, customers now expect most brands to respond to them on social media, which is an almost equally compelling reason for airlines to have social media customer service initiatives anyway.
5. The internet and social media are absolutely unmatched in providing speedy and latest information especially in times of crises.

In this Top 10 we have selected ten great examples (as well as 2 bonus ones) of companies that have gone out on a limb to offer customer service through social media, thereby making their customers very happy indeed. We hope you enjoy the case-studies.

• Southwest Airlines, the Most Remarkably Kind Flight Attendant and the Art of Customer Service
• Top 10 Airports on Social Media – case studies of the airports best at driving engagement
• The Best Airlines Driving Customer Service & Crisis Management Through Social Media: Top 5 SimpliFlying Awards nominees
• United Airlines brand may go for a spin as customer feedback line is terminated
• Five steps to Customer Service Excellence for United Airlines (with real-life case study)

Yes, we gave an award to Qantas for their work with handling the Chilean volcanic ash crises through social media last month, at SimpliFlying Awards for Social Media Excellence. And when you win an award, you should be expected to do more of  the same things better. But it looks like Qantas is attracting social media crises these days like bees to honey!

After causing lots of unhappiness amongst passengers due to the complete fleet being grounded, and then getting some more flak for lack of pro-active response through social media, a simple Twitter contest backfired completely today for the battered airline brand.

The contest was meant to highlight creative aspects of the luxury offered in the premium cabins at Qantas, but it only took an hour for the #QantasLuxury hashtag to trend as passengers and Australia in general vented their frustrations with tweets. Over 51 tweets were being received per minute on the hashtag, and soon mainstream press covered it too.

While we’ve compiled here a number of key tweets and messages in the crises as it unrolled, we’d like to ponder about some questions too:

1. What could Qantas have done differently before launching the contest?
2. How could they have reacted better when the first tweets came out?
3. Should they have cultivated and engaged some brand ambassadors, if they weren’t able to deal with the responses themselves?
4. How can other airlines prepare better for such a situation?
5. What’re the Top 3 lessons learnt from this incident?

We shall crowdsource the answer to these questions and update this post in 24 hours (since the contest runs for another 48hrs)! Meanwhile, have a chuckle or two from the very creative tweets and a hilarious parody video tweeps have put together.

Click here to view the embedded video.

• SimpliFlying iPod giveaway!
• Thirty questions airline brands and airports must answer to build a strong social media strategy
• SimpliFlying and Airline Business launch social media conference for airlines and airports [Plus: how you can win two passes]
• How Qantas dealt with the 48 hour fleet grounding crisis and the A380 mid-air engine failure
• American Airlines rocks on Twitter during the AA24 security threat, while passengers tweet from the plane

Yes, you read that correctly. I did not write Web 2.0. Of course, that’s not because it’s not relevant – it’s terribly relevant – but because this newer term encompasses Web 2.0 and then some. So what exactly do I mean by Mobile 2.0 and why is it important? Cutting to the chase, here are some things we all know: first, ordinary feature phones are dying a fast death and smartphone shipments are rising as iOS and Android become increasingly popular with others, such as Windows Phone 7, hot in pursuit. Second, people are increasingly using their phones to do tasks they earlier used their laptops or desktops for: hotel search, ticket bookings, banking, emails, etc. Third, smartphones are creating an all new category of the always connected traveler – a web-savvy, social-networking geek who isn’t afraid to declare to his virtual networks what he’s thinking or doing.

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

Well, well, well! This year’s race for the 2nd SimpliFlying Awards for Excellence in Social Media is heating up like never before. Our awards are not just featured on the homepages of Malaysia Airlines and Air New Zealand but have gained huge traction on the web as well. Just about a week into voting, the total number of votes has already crossed 12,000!

Votes, as we mentioned in the previous slide-deck on the Best Airlines Driving Revenue through Social Media, have come from around 2500 cities across the world. We promised recently that we’d regularly post case-packs illustrating the fabulous campaigns that have led the final nominees to be shortlisted. And we’re back this time with another 5 great case-studies on how 5 of the best airlines in the world have used social media to drive Customer Service and Crisis Management.

This would be a good time to remind you that voting is still ongoing so you can vote for your favorite airline until 15th September. Do vote if you care about the airline you love! Meanwhile, you can check out the latest result for the current category below.

Before you jump in to the presentation, however, we’d like to elucidate a few key takeaways that have emerged from these case-studies. If you’re looking to build a great social presence, you’ll find these points handy for developing your strategy:

1. Customers love an airline that talks to them and responds to them. For example, Delta’s Twitter account dedicated to purely customer-service continues to delight passengers.
2. Customers hate slow responses. They really really hate calling in to the Call Centers and keep waiting to talk to someone. If they know that they can get a quick response online, they’ll not only show their appreciation but tell their friends too. SAS Scandinavian’s efforts to provide customer service through Facebook is a stellar example of this.
3. Public, social platforms provide airlines the opportunity to be transparent in their communications and allow their message to be spread to a vast audience that is actively engaged on a particular platform. This is especially important during managing crises.
4. During crises, the rate at which fear and panic spread is inversely proportional to the amount of information that customers have. Using Facebook and Twitter ensures that information is timely spread (in comparison to traditional media) and can reach the maximum number of people.
5. Don’t expect people to look for information. Go where the customers are! They should know where they’ll get answers or information. For example, AirAsia’s new customer service portal AskAirAsia ensures that customers are never far away from immediate answers or assistance.
6. After a significant event/crisis/service disruption, when you get good reviews from customers about your efforts, make sure you leverage the great PR opportunity handed to you and make a name for yourself.

With that said, here’s the case-pack. We hope you enjoy going through it!

• SimpliFlying-Airline Business Awards for Social Media Excellence for Airlines – Vote now!
• The Best Airlines in Social Media: the Top 7 nominees for the SimpliFlying Awards for Social Media Excellence 2011
• Simpliflying Hero, May 2010: Aurelie Valtat from Eurocontrol
• How airlines used social media innovatively to battle the ashcloud crisis [from Mashable]
• [LIVE!] How airlines and EuroControl are conquering Icelandinc volcanic ash through social media #ashtag

This is a guest post by Jonathan Haysom, who is a respected marketer and business development strategist. Currently working for Australia’s number 1 telco and number 1 company by brand value, he is responsible for maintaining and growing a multi-billion dollar product portfolio focused on next generation products. He has recently received awards for innovation in marketing and accolades for his social media campaigns and brand strategies.

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Virgin Blue, after fighting hard as a “renegade” brand for a slice of the Australian carrier market is tipped to undergo a marketing face lift and re-invent itself as a full service brand. Some of the purported changes include the introduction of a new business class product, integrating the other brand properties (Polynesian Blue and V Australia) as well as the introduction of wide body aircraft on trunk routes between capitals.

(Image credit: ABC News)

Virgin Blue going upscale?

It is apparent from the changes the new CEO, Ex Qantas Senior exec John Borghetti is primarily going after the lucrative corporate segment of the market, one which Virgin Blue has traditionally struggled to break into due to Qantas’ having a strong and loyal customer base.

The biggest hurdle here will be to ramp up the company’s loyalty programs to make them attractive to corporate clients. The easiest way Virgin could do this besides upgrading it lounge system is to integrate with a global airline alliance, such as SkyTeam or Star Alliance, to boost its loyalty offering and expand code share operations.

It’s not going to be easy to attract new the new corporate business without impacting the most loyal customers who were attracted to the “renegade” brand. The shift away from competing head to head with other low cost carriers such as Tiger and Jet Star will surely allow it to focus more on its new customer acquisition path and deliver a more differentiated product. However it’s a delicate balance between attracting a new segment and not turning away the loyal customer base who share an affinity with the current culture and image.

Virgin Australia Airlines?

The other issue facing Virgin’s re-birth is the long-standing agreement between Virgin Atlantic Airways and significant shareholder Singapore Airlines prohibiting it from using the Virgin moniker for international flights.

I’d hasten to say the use of Virgin Australia Airlines, which was registered several years before the 2008 launch of V Australia will be the primary candidate to encompass all 3 brands.

Mr Borghetti has also recently swept the brands senior leadership team under the one reporting structure, not only implementing a few commercial side changes but also positioning Martin Daley as Product and Guest Services lead across the single carrier brand. Martin was one of the early Virgin Blue culture “creators” and will be integral to ensuring a consistent and on brand culture across all brand properties.

Finally, rationalisation of loss making routes across brands should also be on the cards as part of the marketing change out with yield being a primary focus of V Australia. A focus on greater diligence on revenue generation across the house of brands will be imperative once it becomes a branded house to ensure one branch of its network does not impact another’s profitability.

With most of the changes to come in before the end of the year, do you believe they can shake the low cost carrier moniker, bring the brands together and attract one of the most loyal market segments away from Qantas? Sounds like a big task, so let’s wish them all the best. And watch this space.

• Why a Qantas and British Airways merger is good (and why Qantas + Cathay Pacific will be even better!)
• The “Jetstar-isation” of Qantas is not over yet. Is the LCC taking over the legacy parent brand?
• Australia’s Qantas Airways – the world’s most agile airline brand?
• Talking airline business with Virgin Atlantic VP, Paul Charles
• Why LiveTV is a great idea from JetBlue Airways, to help them fly through a recession and keep the brand alive

SimpliFlying has earned its reputation over the years by offering thought provoking insights into the world of airline branding. And nothing has been as instrumental affecting airline brands as social media.

As airlines become more active in this sphere, we attempt to answer a crucial question: Has social media truly benefited any airline? If so, how? To answer this question, we put together a series of case studies. In this set of six case studies, top executives from airlines such as Qantas, Volaris, airBaltic, Alaska Airlines, JetBlue, and of course, Southwest, talk about how their social media strategies are pushing their airlines into the next era.

Recently, Facebook announced that its user base now exceeds 500m. Twitter, on the other hand is still lagging in numbers, but the growth rate of users easily outstrips that of Facebook. As our case studies will show, both of these platforms offer their unique advantages in terms of customer engagement and information sharing. However, more importantly, each requires its own unique strategy.

The heady growth of social media has brought its own advantages and ills. While platforms such as Facebook, Twitter, blogs and wikis offer unprecedented levels of engagement and information sharing with customers, there are perils as well. For instance, a clear line has to be drawn between what is “too little” and “too much”. This is not always an easy task. Our case studies will show why and much more!

We’re sure you’ll find these case studies inspiring and useful. Please click here to download the PDF containing all of the six case studies.

Special thanks to Shubhodeep Pal, Li Guen and Matt Brennan – all of whom have put in a lot of effort in helping bring these to shape. All feedback welcome at feedback@simpliflying.com

• Top 10 Airports on Social Media – case studies of the airports best at driving engagement
• 52 Airline Marketing Strategies to engage today’s traveler: A walkthrough of our free iPhone app!
• The Best Airlines Driving Customer Service & Crisis Management Through Social Media: Top 5 SimpliFlying Awards nominees
• Airlines, stop putting lipstick on a pig!
• The SimpliFlying Social Media Cheatsheet for Airline Marketers

Last week, I wrote an article for CNBC, which talked about the agility of Qantas that keeps the airline in profitable territory. The article resulted in a lively debate with a number of Aussie aviation experts down under, and one of them kindly offered to write a detailed Guest Post on SimpliFlying on how it’s actually Jetstar that’s keeping Qantas afloat.

Grant McHerron (aka Falcon124) is an opinionated aviation enthusiast & co-host of Plane Crazy Down Under, Australia’s only aviation podcast. He is an online/digital project manager and perpetual student pilot who can often be found crewing hot air balloons, working airside at Avalon Airshow and plane spotting at airports around the world. He graciousouly hosted me when I visited Melbourne last year, and we almost watched the sunrise in his hot-air balloon Enjoy!

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The latest half-yearly results from QANTAS continue to show an airline that is hemorrhaging cash on its mainline, full service routes. While QANTAS are certainly showing signs of agility, the primary factor keeping the group afloat is the success of their Low Cost Carrier brand Jetstar.

The creation of Jetstar

Towards the end of the 1990′s, QANTAS saw the writing on the wall as customers moved towards the Low Cost Carrier (LCC) model, sacrificing as much as possible to chase cheaper airfares (yet still complaining strenuously about lack of service despite paying next to nothing, but that’s a whole different article Like other airlines they decided to create their own LCC, launching Jetstar in 2004 by rebranding the Impulse Airlines LCC operation that QANTAS had previously purchased in 2001. Re-branding Impulse Airlines was important as it allowed QANTAS to utilise their equipment and, most importantly, their staff agreements.

These agreements have allowed Jetstar to pay their crew less and utilise them more than QANTAS mainline staff who are covered by agreements that are the result of decades of union strength and bargaining. This low cost base provides Jetstar with more room to reduce fares and compete against other LCCs.

Image Courtesy of stuff.co.nz

Jetstar complementing and competing with Qantas

Low fares have not been the only factor that has allowed QANTAS’ baby to survive & grow, unlike other LCC offshoots, such as MetroJet & Song. Competing with Virgin Blue and Tiger Airways, Jetstar are also taking over unprofitable routes from the QANTAS mainline brand, including the routes run by Australian Airlines, the low cost international operation that QANTAS had launched in 2002 but eventually folded in favour of Jetstar.

In response to Tiger Airways starting a Melbourne to Sydney service in 2009, QANTAS allowed Jetstar onto the route in direct competition with their own “City Flyer” high-frequency services. The route between Melbourne & Sydney is the world’s third busiest and features high numbers of corporate travellers commuting between the cities. QANTAS reasoned that with fares falling further thanks to Tiger’s arrival, they might as well try to capture the discount travellers and keep them “in house” rather than lose them entirely.

It was this introduction of Jetstar onto one of QANTAS’ domestic cash cow routes that spurred Alan Joyce to famously state there would be “no further Jetstarisation of QANTAS.” If only that were true.

The Jetstarisation of Qantas

Jetstar’s growth has survived challenges such as the Bird Flu epidemic, Swine Flu and now the global financial meltdown. In fact, the current crises appears to have helped drive more traffic to Jetstar as business travellers and other frequent flyers have had to face reality and reduce the size of their travel budgets.

QANTAS recognised the surging “flight to value” as their First Class cabins drained down into Business Class while business travelers wound up back into Economy Class. Many passengers were lost to other airlines on some routes in the mid 2000′s, apparently fuelled by QANTAS’ lack of any Premium Economy offerings. Many of us in Australia were wondering why QANTAS was slow to realise that frequent travelers often want space & comfort, something certainly not encountered in the cramped conditions of cattle class.

QANTAS did eventually introduce a premium economy service in April 2008, slowly expanding to most of their international routes by the end of 2008. While this helped retain customers, it was becoming clear that high-end premium traffic was not only down but may, in fact, never come back to QANTAS. With high end premium traffic down and growing competition from the top quality First Class offerings at Emirates and Singapore Airlines, QANTAS have taken the wise step and are removing first class from their remaining 747-400s and 8 of their A380s (those arriving in 2012 & beyond). They will still have a First Class offering on 12 of their A380s but are reducing the number of Business Class seats on those aircraft to provide space of more Premium Economy and Economy seats.

This is yet another step along the Jetstarisation of QANTAS, even though the aircraft are still under the mainline QANTAS brand. Additional steps towards Jetstar’s dominance include their current push into Asia and their intended use of 787s to open up Europe. It is perhaps no surprise that all the new jet services & routes that QANTAS is adding (or re-opening) appear to be under the Jetstar brand, not QANTAS itself.

Qantas for Business, Jetstar for everyone else?

Over at the Plane Crazy Down Under podcast, this ongoing movement towards Jetstar has us making reference to “QANTAS, a member of the Jetstar group.” We have also joked that the ultimate end point for Jetstar will be flying JQ branded high density A380s across the Pacific and into Europe. As Ben Sandilands has pointed out in a recent Plane Talking entry, this may very well become a reality if the 787-9 does not live up to original expectations.

If current trends in domestic & international airline passenger transport continue, it is clear that Jetstar will continue to gain market share as QANTAS reduce their mainline aircraft to only those routes that still have a good market for business class. It seems likely that Alan Joyce will eventually regret his comment that the Jetstarisation has ceased as it appears to be, if anything, speeding up.

• Australia’s Qantas Airways – the world’s most agile airline brand?
• Is Premium Economy here to stay? A brand review of All Nippon Airlines
• Five clever ways to earn frequent flier miles for upgrades
• Is business-class travel going extinct? Part 1 of 2
• The business of business class

This article was first published on the CNBC blog
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Qantas announced today a net profit after tax of A$58 million for the first half of the financial year, down from $210 million a year earlier, although the airline did recover from a loss in the second-half of last financial year. This 72% dip in profits resulted in the shares falling by up to 7.2% in early morning trades. However, Alan Joyce, the CEO, says the carrier has done better than most of its rivals. And it has, indeed, thanks to its agility.

Agility through smart cost-cutting

Although revenues dipped by 13.4%, costs were slashed by 16.2%, which shows Qantas’ diligence and discipline in reducing expenditure in the past year. The cutting of frequencies to unpopular routes and grounding of older aircrafts was key to these cost savings.

Load-factors have been the highest in five years – at 82.4%, on flights that carried a lesser number of total passengers as compared to the past year.

This simply means that flights were more full than in the past, despite the recession. Of course, the downside was that this was achieved by offering very low fares on certain routes, which are unsustainable in the long run. Alan Joyce eluded to this fact as well, by indicating that the industry’s survival depends on higher fares.

Agility in re-configuring the cabin

Qantas was one of the first airlines to add a Premium Economy cabin to their flights. Now, they’re standing by their decision by overhauling their cabins. Qantas will be removing First Class on most of its long-haul routes, with the exception of London and Los Angeles, and adding Premium Economy to their widebody jets.

This not just reflects the growing sentiment that Premium demand will change in the coming years, but also the fact that there are more First Class seats in the market than required. For example, from Sydney to London, a passenger has the choice to fly on First Class Suites on board Singapore Airlines, Emirates, Etihad, Qatar Airways and Qantas. Certainly a case of over-capacity.

Qantas is one of the first airlines in the world to remove the First Class in a systematic fashion, and change their long-haul plane configuration to Business, Premium Economy and Economy classes. This effectively increases the number of seats and hence reduces the cost per seat even further. Such agility will pay off for Qantas in the long term.

Leveraging on Jetstar

It’s a known fact that the two brand strategy, growing Jetstar aggressively, gives Qantas Group a very valuable option that few others can match. Jetstar’s profits tripled in the past year and continue to provide Qantas a very valuable asset to leverage on low-yielding routes. The two-brand strategy has also ensured that the Qantas Group doesn’t lag behind LCC competition from Virgin Blue and Tiger Airways.

Moreover, the recent Jetstar-AirAsia cost alliance should also help the airlines reap additional benefits in the near future through by tapping on each other’s scale and synergies.

In conclusion, even though profits have dipped, Qantas remains one of the most agile airline brands in the world and it’s this quick-thinking that will keep them ahead of most competition in the coming times. What do you think? Let’s discuss in the comments, and over on Twitter (@simpliFlying)

• The “Jetstar-isation” of Qantas is not over yet. Is the LCC taking over the legacy parent brand?
• Is Premium Economy here to stay? A brand review of All Nippon Airlines
• Five clever ways to earn frequent flier miles for upgrades
• Why a Qantas and British Airways merger is good (and why Qantas + Cathay Pacific will be even better!)
• The business of business class

Let me say this again. I think Air Asia is one of the most innovative airlines in the world today – right up there with JetBlue, Virgin, Singapore Airlines, Southwest Airlines and LAN Airlines. And today they pulled out a trump card – a joint venture with Australia’s Jetstar Airways. You can keep reading the press releases, but here’s the essence of the agreement and how it will benefit the airlines and their customers (you and I!)

What the AirAsia and Jetstar “budget alliance” means

The most significant difference is the departure from Star Alliance – type marketing or revenue driven alliances. Air Asia and Jetstar have formed a cost alliance, or what I’d call a “budget alliance” (pun intended). Here is the nitty gritty.

1. The airlines will pursue joint procurement of aircraft – This means that they will be able to leverage economies of scale while buying from Airbus.
2. Joint design specifications – since they’re going to order a lot of planes, they can demand from Airbus things like a twin-aisle A320 or more efficient engines suited for their own operations. I think this is HUGE!
3. Pooling of inventory and spare parts – both airlines operate only A320s and A330s, so this was an easy one
4. Combining Airport passenger and ramp handling services – this is crucial for cost savings as during an emergency, the airlines can use one another’s planes to carry passengers.
5. It’s a non-equity partnership – so both will work on reducing costs together, but will not share revenues.
6. There is no maintainance involved – this can get tricky, with different safety regulations in different countries and result in safety lapses. And I think Qantas has learnt its lessons with the failed partnership with Malaysia Airlines last year.

For the consumers, this means lower costs for both the airlines and benefits for all of us. Hurray!

Though, if I was working at Tiger Airways right now, I’d be worried. Especially with the upcoming IPO!

Why it’s a genius move, as shared Live at CNBC studios in Singapore

I spent this morning with CNBC’s Martin Soong & Sri Jegarajah sharing my thoughts about the joint venture Live on SquawkBox. The interview now available on CNBC’s website and I’ve embedded it here for your convenience. (Click here if you can’t view the video interview).

So, what do you think about this budget alliance? Is this the beginning of a new era for airline alliances? Will other LCCs or legacy carriers follow? Let’s discuss in the comments or over on Twitter (@simpliflying)

• SimpliFlying in The Media: CNBC, The Straits Times, Asia News Network, AirObserver’s Blog, DrDaveHaleOnline, Travel Reviews, Travel Industry Wire, Facing the Street
• SimpliFlying in the Media: FOX 7, Today, Air Transport News
• SimpliFlying in The Media: Reuters, CNBC, Channel News Asia, FlightGlobal, TODAY, Aviation Indian, Ole Kassow Inc, UpTake Travel Industry, Columbia Business School…
• Five reasons why budget airlines in Asia are successful
• Why the Southwest and WestJet alliance is good for both the brands

It’s been a fascinating day, as an outside observer of the impasse between Singapore Airlines and Flight Center – one of Australia’s largest and most powerful travel agents (they’re actually much more than just an agent).

The Contradictions – SIA vs Flight Center

Late last night, SIA sent out an email to its Australian frequent fliers, which announced that the airline’s tickets will no longer be sold through Flight Center. That came as a shock, since it’s like saying your website won’t appear on Google.

But things got more interesting, when Flight Center put out a release countering what Singapore Airlines had said, claiming that they’re still selling SIA tickets, but it’s just not the preferred airline. What that means is if you want to fly from Sydney to London, Flight Center would recommend Emirates, Qantas or another airline, unless you insist on flying Singapore Airlines. And that can still mean a lot of business loss.

No lessons learnt from the Indian fiasco?

SIA flight attendants on flights to India used to be tired by the end of the flight, since loads were high and passengers demanding. But these days, nobody minds doing those flights because the loads are very light. That means less work. And this is because the airline has lost its major ticket sales channel in India for the past six months – the travel agents.

If you recall, late last year, travel agents in India boycotted Singapore Airlines because the airline refused to pay them commissions. And that, in a market where 90% of sales used to be through these agents. It inspired a highly debated article on SimpliFlying about the importance of adhering to cultural sensitivities. And now history seems to be repeating itself.

Adverse effects on a great airline brand

SIA had done a fantastic job of building up a formidable brand in India, through innovative promotions for over five years. But much of these were undermined when agents there refused to sell the airline’s tickets.

Down under, in Australia, SIA has been lobbying to fly the coveted Sydney-USA routes for some time now. And the Flight Center impasse may just hinder that bid. Moreover, the potential impact of losing out on the cash-cow route Kangaroo route from Sydney to London may give competitors like Emirates and Qantas the boost they needed. Add to all this the difficult economic times and record recent revenue drops and you can imagine the trouble SIA might find itself in.

I love flying Singapore Airlines and would rather not see this happening to them. May be it’s the flight of top executives over the years to other carriers. May be its the knee-jerk reactions to save costs in the down turn. May be it’s just bad luck.

What do you think caused this? What do you think SIA can do to emerge out of this? Let’s discuss…

P.S: Special thanks to @MatthewPDavis who’s been updating me about this news.

• Cultural sensitivity is the key to building sustainable airline brands
• Three reasons why Qantas missed a branding opportunity with A380
• Singapore Airlines A380 Suites – A Class Beyond First or a First Class Branding Debacle?
• Why Indians need to get over Air India and recognize Emirates as the national carrier
• Interview with Emirates VP Nigel Page on the A380 flights to JFK, SFO and LAX