I feel rating Hainan as Five Star was the final nail in the coffin for Skytrax. Here are three reasons why I believe Skytrax is dead:

1. Irrelevant – If I’m a Kobe Bryant, then the only Business Class seat that’s Five Star for me is Oman Air’s – not Asiana or any other 5-star-classified airline. Because I can fit in there. Moreover, service and products differ dramatically for airlines on different routes and sectors. Hence, airlines ratings need to be relevant – which Skytrax is not.
2. Not real-time- Annual ratings are no longer desirable as airline service levels can dramatically change over a much smaller period of time. Look at how Garuda Indonesia dramatically improved service in the last month. Moreover, passengers are now used to rating in real-time and also consume real-time data, which Skytrax doesn’t seem to support
3. Not peer-reviewed- In the same vain as real-time, passengers are used to reading peer-reviews to determine which airline to fly, not annual “star ratings”. In fact, recently, the UK government announced that they’re withdrawing support for hotel star ratings, because consumers prefer peer-reviewed ratings.

What does the Twitterati think about Skytrax?

Again, these are just my own opinions. To verify them, I conducted a poll on Twitter, and here are some reactions from those who took part, along with the chart summarizing the poll results.

As you can see from the results of the poll, 81% of the respondents believed that Skytrax ratings are highly irrelevant. I guess that sends a clear signal to airline managers obsessed with achieving an additional Star on the Skytrax ratings to look elsewhere.

What is the future of airline ratings?

Now that the writing on the wall for Skytrax is quite clear, we should think about the future. For starters, there are alternates like Eezeer’s NOW ratings for airlines, TripAdvisor’s airline reviews and even Zagat ratings, which are much more real-time and relevant than Skytrax. A recent USA today article also evaluated a variety of airline ratings.

So now that travelers have a lot of alternates to Skytrax, airlines looking to adhere to the next wave of airline ratings need to consider a few facts. And here are 10 of those.

1.     Each flier is different in what he/she wants in a “perfect” airline. It depends on various factors which themselves vary between various (yes, another various) airlines. Hence, the difficulty of quantifying what makes an airline good. It’s purely subjective.

2.     Business travelers often prefer extra space (think laptops, business suits, comfort) along with lounge access, free pickups – and they will rate the airline differently than leisure travelers. In fact, each micro-segment will have it’s own way of assessing the quality of the airline -from backpackers, to gramdmoms. Airlines need focused differentiation. Don’t try to be everything to everyone!

3.    Presence of multiple surveys is more confusing than enlightening. Doesn’t really help since the traveller looking for advice due to their different results and interpretations of what is “best”. And airlines need to help simplify this process.

4.     Comparisons in surveys are often not done in a uniform manner. LCCs cannot be included in the same class as legacy carriers (Zagat Survey) since they serve different purposes and will have different offerings.

5.   Consumers can often see through the PR spin by airlines about rankings. Proclaiming a winner might be the result of a magazine/survey’s prejudices. So, be truthful, and don’t try to cover up your misgivings.

6.    While ratings matter, price is still a key factor for deciding which airline to fly on – followed by schedule and convenience. Hence, sort out the basics of what value you’re offering to the customers, before dedicating resources to managing ratings.

7. Airlines should ultimately have route managers being held responsible for ratings of their specific route, over time and versus competition on that route. And that’s when the overall impact will be felt.

Eventually, not only is it difficult to identify the “best” airline, I think the question is pointless until a standardised method of measurement is undertaken. Otherwise, we might as well say oranges are better than apples (which might be true depending on the person.) The counterpoint of course is that some airlines are indeed oranges while others are apples. So can airlines be truly compared since they all tend to offer value through differentiation and will tend to do better than other airlines on some counts and worse on some other counts.

Until we can truly quantify such problems and even them out, the question of best is useless. We should stick to systems that compare airlines across a list of measures and let the traveler decide which airline to fly depending on how *he* views the relative importance of those measures.

And the reality is that Skytrax is a 90s technology that faces sunset this year – and unless they re-invent themselves to incorporate real-time peer-reviews, be transparent about their rating system and use social media to engage with customers – they’re doomed.

What do you think? Let’s discuss on Twitter and in comments.

P.S: Special thanks to Shubhodeep Pal for help with this article

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1. To get all manufacturers coming to Qatar Airways’ chalet, than the QR executives going to the manufacturers
2. Increase brand awareness among suppliers
3. Invite the media to the chalet to share stories about the airline
4. Mr Al Bakar wanted one

For all the above reasons, I keep coming up with respective counter arguments..

1. Any suppliers trying to sell planes or services to QR would already have done their homework and go to Mr al Bakar anyway, hence negating the need for driving brand awareness among suppliers
2. The media is just as happy at press conferences as well as on-board the plane on static display,

So then why would Qatar Airways, or any other airline have a chalet at an Airshow? And how is the ROI from such an investment determined? I’m puzzled, and would love some answers. Let’s discuss on Twitter (@simpliFlying) and in comments.

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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)

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—–

The MENA region airlines bucked the global trend in 2009. It was the only region that had an increase in traffic and had the loss forecast dropped by 50% to half a billion. The region saw an increase in flights and in destinations.

2010 promises to be an exciting year for the region. Airlines in all segments are competing for a leading position.

Emirates facing the crunch?

Emirates remain the leader of the pack, with a brand that, by far has no rival not only in the region but globally. So far Emirates has shown a financial ability to finance its expansion without burdening Dubai. The problem Emirates might face is a tightening of credit due to Dubai World’s and by extension Dubai’s problems. And as previously mentioned on SimpliFlying, even a merger between Emirates and Etihad cannot be absolutely ruled out.

Etihad and Qatar Airways expanding?

Etihad and Qatar Airways are both embarking on an expansion spree, supported by oil revenues of their respective governments, a viable means as long as oil prices hold at their current levels. Needless to say both carriers have not turned any profit yet. On a service level and as a brand both are offering services that in some cases not only rival Emirates, but exceeds it.

Royal Jordanian merging?

Royal Jordanian, the first Arab Carrier to join an alliance (One World) and the second Arab Carrier to privatize and be listed in the Amman Stock Exchange, is floating the idea of a merger with another regional airline or European airline by mid 2010 as the means of sustaining growth. This may be easier said than done since the Government’s approval is crucial (holds 39.5% of the stock) and the other problem is finding an airline that is compatible with the RJA brand displayed in their new A319, A320 and A321 fleets in terms of cabin and IFE.

Gulf Air going regional?

Gulf Air is looking to restructure and reinvent itself as a regional carrier as opposed to an Emirates or Etihad clone. For that they have employed Royal Jordanian’s ex CEO, the same person that lead RJA to profitability, privatization and into an alliance. GFA has already made its first review and as a result returned the Leased B777 back to Jet Airways and confirmed a 20 A320 orders from Airbus with a delivery rate of one aircraft a month. A sticking point is the union that opposes any Bahrain nationals staff cuts. The union has thwarted several restructuring plans in the last 10 years.

Oman Air re-inventing itself?

Oman Air has lead the region with an new First, Business and Economy seating plus connectivity on their A330 fleet with a Thales IFE and Higher bandwidth SwiftBroadband platform to deliver GSM/GPRS and WLAN via OnAir., launching a new campaign of “The Change is Here” .

The LCC onslaught?

On the LCC front as Air Arabia launches its second international hub (Alexandria-Egypt) in 2010, it faces stiff competition from FlyDubai and a reemerging RAK Airways. In Kuwait Jazeera Airways departed form the LCC model and is offering Business Class similar to Bahrain Air.  This sector is facing competition not only from within but from other Legacy regional airlines.

These are a few of the issues facing the region’s airlines and promises an even more exciting year.

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• The future of Middle East Super-Airlines: Emirates and Etihad to merge, and Qatar to join an alliance

Five star culinary experience

As you can tell from the number of photos in the slide show with a gastronomic feel to them, I had a LOT to eat on board my flight from Singapore to Abu Dhabi (for this conference), via Doha. Not only did I have a multi-course breakfast and dinner on board the Business Class, it was the style in which it was served that impressed me even more. Fresh napkins were spread on my lap by the steward and table covers for the table. I was asked for my choice of food before take-off (just like in a restaurant), and also asked for which meals I wanted to be woken up for (Great job, Luke!).

The food itself was very good too – unlike what airline food is generally about. If you click on some of the photos above, you’ll know what I mean. So from the culinary aspect, Qatar Airways sure is a Five Star airline.

The X-Factor – a premium terminal!

All things one would expect of a quality airline were present on Qatar Airways – a comfortable seat, good in-flight entertainment (I finally watched Notting Hill!), and amazing food. But here’s what totally caught me by surprise – the Premium Terminal in Doha Qatar Airways has for its Business and First Class passengers. Yes, I mean a full terminal, not just a lounge. Though that may not sound significant from the outset, my experience was memorable.

As a transit passenger, I was for once taken care of by the airline staff, not the airport staff. The difference? Well, just imagine that you’re in transit at Singapore Changi, and the SIA Girls look after you, not the SATS or the lounge staff. Wouldn’t you like that? I loved it!

I was whisked away in a luxury bus (it had sofas, not seats) to the Premium Terminal, only to be welcomed by two Qatar Airways staff and then led to the Business Class lounge. The terminal was quiet, spacious and certainly exclusive. Almost serene, I’d say. Not only did the terminal have a dedicated duty-free shopping area, but the lounges were equipped with free wifi, a restaurant, a conference room, massage chairs, private bedrooms and even a sauna and jaccuzzi! Talk about feeling pampered. For once, I wouldn’t mind having my connecting flight delayed.

The little things that made a big difference

Very often, a customer’s interaction with a brand is taken to another level due to the small things. And in my encounter with Qatar Airways, I certainly had a number of such moments. Here are some of them.

1. The lady in the Business Class terminal remembered my name from my prior visit earlier in the week. That was a pleasant surprise!
2. In the short flight from Abu Dhabi – Doha, each and every passenger up-front was personally thanked for flying with Qatar Airways for the first time, or for being a frequent flier.
3. In the Doha-Singapore flight, the Chief Steward came up and chatted with each passenger on his/her experience and actively sought feedback.

Room for improvement?

Something business travelers crave on an over-night flight is a good sleep. And I wouldn’t say I had a perfect sleep on my flight, because the seat wasn’t fully flat – I kept sliding down. It’s not the most comfortable feeling when you’re trying to sleep well. Even though it was wider than the Cathay Pacific’s new Business Class bed, I’d prefer the latter, since it was fully flat.

Even though I had a journey where nothing major went wrong, I’ve heard from a number of close associates and on the internet (read a true account) that Qatar Airways doesn’t do a very good job of dealing with unforeseen circumstances. Even things like flight delays, lost baggage and weather related events sometimes cause much strife for the passenger. How to solve this? For a start, having a set of standard operating procedures and giving employees some autonomy to act can help ease things a bit.

Qatar Airways brand analysis

Let’s do a quick brand evaluation of Qatar Airways, based my flight experience, using relevant levers from the 6X airline branding model (TM).

Brand eXpectation: The advertisement Qatar Airways run claims that it provides “hospitality at the highest level”. Though that is certainly putting them in the “premium carriers” basket, think they could have done a better job of creating a distinct image versus their regional competitors like Emirates and Ethihad – both of which have similar messaging. Score: 8/10

Brand eXperience: The in-flight experience was true to what was promised, which is often a rarity these days. Product quality was far better than most out there and service was professional and courteous. And the food tasted much better than the average airline fare. They’d have gotten a perfect ten if I had seen more of the attendants during the flight, proactively anticipating needs, rather than addressing them. Score: 9/10

Brand eXpression: This relates to how well the company interacts with the customers pre and post-flight. Qatar Airways staff was actively seeking feedback during the flight, have interacted with me a couple of times after that and are even on Twitter! They’re on the right track. Score: 9/10

Brand eXternalities: This is what happens when things go wrong. Apparantely, Qatar Airways doesn’t have a very good track record here. Score: 7/10

Brand X-Factor: This is something that puts an airline in a class of its own – something difficult to duplicate for competition. The Premium Terminal and the little things they did certainly is a shiniing example of the emphasis Qatar Airways puts on its customers. 10/10

A total score of 43/50 is very respectable and I’d recommend Qatar Airways to all readers. It’s a refreshingly pampering experience.

I’ve given my verdict. What do you think? Have you had a different experience on Qatar Airways? Where is the room for improvement? What can others learn from the airline? Let’s discuss…

P.S: Special thanks to Edward Cameron from Qatar Airways for assistance in this trip.

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Food on Singapore Airlines - pretty good, but not the best

This article is inspired from a review SimpliFlying has received, which notes that there is hardly any talk about food quality on board airlines on this blog. Indeed, food quality and serivce forms an integral part of the flight experience – especially for long haul flights. In fact, it can sometimes be crucial to winning the customers hearts, as Malaysia Airlines CEO realized. They had been serving mutton biryani on routes to China, and customers didn’t like it. They switched to chicken rice, and won their hearts. At the same time, they started offering mutton biryani on flights to Delhi, which was well received too.

Personally, I’ve been pre-selecting Indian non-veg meals, across Star Alliance and Oneworld carriers. Though I’ve flown Singapore Airlines quite a lot, I wouldn’t rate their food as my favorite. My best culinary experiences at 35,000 feet have been on-board Qantas (SIN-FRA), Cathay Pacific (JFK-HKG) and Air Sahara (now, JetLite. SIN-DEL).

But what constitutes good food on board airlines? Quality? Quantity? Timing? Or cultural appropriateness? Which airlines serve the best food? Let’s hear it in the comments section (remember, you can win a 2GB iPod, just by commenting!).

If you found this SimpliFlying article enriching, I hope you’ll pass it on to your friends and encourage them to subscribe by email or RSS for regular updates. Thanks.

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Catering services specifically to customers’ needs ensures loyalty

The region is flush with oil revenues, and more rich Arabs are taking to the skies – flying business class and first class. Airlines in the region pamper this key segment of their customers. Etihad Airways just opened a plush business class lounge at Abu Dhabi airport and offers limousine pick-ups, like Emirates. Emirates is also the first airline to introduce showers on-board its new A380 first class cabin. Qatar Airways has gourmet meals catered to suit their frequent flyers. It is no wonder that programs like Emirates Skywards reports that the program’s current rate of growth is just over a member a minute.

More importantly, all of these airlines give a variety of options to their customers to en-cash their frequent flyer points – up to 600 options at Etihad! These include not just flight tickets and partner merchandise, but also specially catered experiences like weekend breaks and shopping to one-of-a-kind experiences such as a night with the paparazzi or tandem skydiving among many others.

In addition to pampering the super rich, the budget airlines in the region offer the millions of low-wage workers from South Asia, China and The Philippines to fly home without burning a hole in their pocket. Again, a number of these airlines are owned by the legacy carriers, and new ones are propping up very often. The latest is FlyDubai, being launched by Emirates.

Airline services and frequent flyer programs that actively cater to customers’ needs can have a huge leverage on airline’s brand loyalty, especially over time, as new competitors take to the skies. And this is demonstrated very well by the Middle East carriers.

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Image courtesy BBC news

“I was in Sudan for a presentation and experience sharing with East African Telecentre Networks. I was scheduled to travel back to Delhi on Qatar Airways, via Doha. Traveling the day after the crash, I was issued boarding passes at the airport, even though the runway was only open for small planes as it was partially damaged.  All passengers were standing in front of the boarding gate from 2 PM till 9 PM without any information, food or water. Communication with the ground staff was difficult due to language problems, and they did not seem to have any information as well. As the night approached, the airline refused to put us in a hotel, since they claimed this wasn’t their fault. Luckily, our trip organizers made alternative arrangements for us for the night.

The next day I was told at the counter that home leg from Doha to India was confirmed, but they were not able to re-issue a ticket from Khartoum to Doha as there wasn’t a computer at the airport. Finally, they booked me on the evening flight, but that meant I’d miss my connecting flight to Delhi. The flight departed late from Khartoum, and was told at Doha airport by Qatar Airways staff that I’d have to wait for 20 hours at Doha airport to catch next day flight to Delhi. I wasn’t prepared to wait this long, and after much coercing, pursuaded the staff to put me on a flight to Kathmandu, Nepal, which would then allow me to get on a connecting flight to Delhi the same night. I finally reached Delhi, only to find that my luggage was missing. It finally arrived 36 hrs later. I was offered no compensations from the airline, and have lodged a complaint with them.”

Interestingly, Qatar Airways has been given 5 start rating by SkyTrax, a rating which “recognises consistently high standards of Staff Service delivery in Onboard and Airport environments.” The airline certainly didn’t live up to their reputation in this instance.

Three key lessons can be learned from this incident.

1. Ground staff, even if outsourced to other agencies, must maintain the service standards set by the airline. They should take responsibility of the passengers and not shrugg it off.
2. In times of crises, like these, the most important asset is perfect information. The airline should make extra efforts to keep the ground staff updated, and the staff in turn should keep the passengers updated of the latest information. Nothing fosters trust more than this.
3. Consistency in service quality is key in upholding customers’ confidence over time. Even though Qatar Airways may be spectacular most of the time, just one incident like this can erode trust and ensure that the customer defers to another airline. Moreover, he is much more likely to tell others about an unpleasant experience, rather than a pleasant one. So the multiplier effect can be derimental to the brand name.

Ponder that!

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Links:

1. Sudan Plane Crash
2. Qatar Airways’ Skytrax rating

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