Dear Readers,

I hope you enjoyed the India Special in February on SimpliFlying, where I featured case-studies and interviews on airline branding in India, including that of the COO of SpiceJet and COO of Indigo Airlines. I received an overwhelming response to these articles too. Hence, I’ve decided to make the first fortnight in March, the Ancillary Revenues Special.

Ancillary revenues + airline branding = Even greater profits!

Why, ancillary revenues, you may think. That’s because it becomes an extremely powerful concept when in sync with the brand strategy. For example, when you fly Singapore Airlines, you don’t imagine paying for food on-board, due to their brand positioning as a premium airline. And that’s why their decision to charge for emergency row seats came as a shock to many. This is because the ancillary revenue strategy did not resonate with the brand strategy. Hence, the aim of this special feature will be to feature case studies, interviews and analysis on how airlines can leverage their brand while building multiple sources of income.

Still not convinced, here’re some ancillary revenue statistics to whet your appetite:

• EasyJet earning £77m or an extra £3.81 per seat
• Ryanair generating £221m in ancillary revenue
• LCCs at the World Low Cost Airline Congress aiming for ancillary revenues of 10-20%
• 63% of airline managers believe unbundling is the future
• Major airline brands becoming one stop shops that offer all travel products
• Increase brand reputation and loyalty by offering products that enhance the travel experience
• AirAsia’s ancillary revenue grew by 77% allowing fares to go down 2%
• SkyEurope generating 18% of revenue from ancillary products and services
• Virgin Blue’s ancillary revenue equivilant to the yearly operating costs of 4 planes

If you haven’t already done so, I’d like to invite you to subscribe SimpliFlying by email or RSS so that you can get the updates from the convenience of your inbox.

Keep soaring,
Shashank

• Low cost airline brands get creative with ancillary revenues – lounges, shops and cargo!
• Ancillary revenues and airline branding webinar slides (with video!)
• Ancillary revenue: A boon or a bane for the airline brand?
• How an intelligent seating system can bring ancillary revenues, and is great for the airline brand
• Making ancillary revenue work with brand strategy – my interview

Recently, there has been a surge in online betting on an interesting issue – which would be the next airline to go bust? Below is a screenshot of one of those sites. From the odds, we can tell that FlyGlobespan and SkyEurope are the most likely to go bust very soon, and British Airways and Lufthansa are the commercial airlines least likely to go bust.

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!

• “Chris Brogan: If I was an airline CEO.” Exclusive video interview with the social media mogul
• Why it’s good for the industry if airlines go bankrupt
• Will the Dubai crises lead to a mega Emirates + Etihad airline brand?
• What makes Lufthansa a successful airline brand in India?
• Airlines: Smile more so flyers “pick” you. In conversation with Patrick Hanlon of Thinktopia