Yes, I said it: branding!

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 …

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 …

If you still need proof of whether social media matters or not, you only have to look at the turnout for this year’s votes for the 2nd SimpliFlying Awards for Social Media Excellence. By the time voting closed after 2 weeks of stiff competition, more than 30,000 votes had been submitted from over 4500 cities. And this was after having shortlisted the Top Nominees from close to 60 nominations. The finalists for each category have been announced and they’ll face off in Amsterdam on October 10.

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 …

After all the clamour regarding social media and how it’s the next big thing, we’re finally beginning to see some sense emanating from all the noise. Until now, there was an overwhelming feeling that what brands (among them airlines) really wanted out of social media was vague: there was no real consensus on what social media could actually do. It was mostly an unexplored quagmire that might yield riches or the swamp monsters. However, after an initial couple of years of experimentation, it’s quite evident that there are indeed riches to be gained from this quagmire. The bad news? There’s a monster protecting that treasure!
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 …

A special day in aviation
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 …

British Airways announced yesterday that they will be launching all-business class flights from London to New York City in September. It will operate A318s fitted with 32 lie-flat seats on the route.

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 …

I flew to from Delhi to Singapore yesterday on Singapore Airlines. Service was at its best, as always, but the Boeing 777 plane wasn’t very full. In fact, the load factor was startingly low – probably below 50%! There was one person in First Class, less than five in Business Class and Economy was empty enough that almost everyone had the middle row seats to sleep across. And it seems to be the case across Singapore Airlines’ flights from India. Why would they be suddenly cutting 214 regional flights?

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 …

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

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

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!

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