Closing off the Indian Aviation Special Month here at SimpliFlying, this week, I’d like to share with you an exclusive interview with Binit Somaia, Director India & Middle East, at Centre for Asia Pacific Aviation (CAPA), based in Sydney, Australia. CAPA is a leader in consulting and advisory to airports, airlines, investors and governments on business and strategic issues. Binit himself is a treasure trove of knowledge when it comes to Indian aviation. I was privileged to have an enriching interview with him on the challeges and future of airlines in India, as well as what branding means to airlines there. So, without much further ado, let me dive straight into the interview.

SimpliFlying: India has a lot of first-time fliers. What’s different about marketing to first-time fliers vs frequent fliers?

Binit: First time fliers may be quite apprehensive, and they require reassurance that the experience will be a pleasant one. Apart from the actual act of flying, in a market such as India flying for the first time can involve crossing social barriers which can in itself be quite daunting. Low cost carriers have made flying affordable for some who might otherwise never have dreamt that they could fly, something which was once a preserve of the elite.

However, apart from Air Deccan, which pitched itself as the common man’s airline (see video below), it is not obvious that any of the other carriers have made an effort to specifically appeal to first time fliers, but end up getting them anyway. Air Deccan’s ethos was built around first time fliers and their marketing included a wonderful television advert that captured the mixture of nerves and excitement that a first time flier feels and portrayed itself as the airline that understood and would take care of such passengers.

SimpliFlying: India is well known for disorganized retail and non-traditional channels. Which are the key channels through which Indian airlines build its brand awareness among the target markets?

Binit: Indian carriers have generally pursued quite traditional channels for brand building, namely print media advertising and outdoor billboards. Television has not been a major medium due to cost. Kingfisher has probably adopted the most diverse approach – the airline has been associated with sponsorship of the Indian Premier League and Formula 1, whilst it also benefits from the fact that Kingfisher is a brand beyond the airline and it benefits from the spin off of initiatives such as the Kingfisher Calendar and promotion of its water and beer. Air Deccan when it first launched made efforts to promote its presence in the smaller towns and villages by sending branded vans into rural India, which also doubled as booking locations.

SimpliFlying: Do you think a strong brand can soften the impact of downturns on airlines?

Binit: In an economic downturn, where people are reducing consumption it’s questionable whether strong brands will prevent travellers from flying less per se. However, individual airlines with strong brands may benefit in two ways 1) they may be in a position to maintain stronger yields because of the value of their brand and 2) in times of uncertainty, passengers may prefer to travel with a brand in which they have greater confidence and trust – therefore a strong brand allows them to increase their market share even though overall industry traffic may be declining.

Departing on a test flight Image via Wikipedia

Jet Airways recently hinted that the worst is over for them and they expect to break even again in the middle of this year. And this is mostly because of the drop in fuel prices (obviously!) as well as the prudence shown by the management in cutting unprofitable routes, including that the San Francisco. And I don’t see this as an isolated case.

After my recent interactions with key airline executives in India, including the CEO at SpiceJet, it is my belief that airlines in India will not only be one of the first few to emerge from the recession, but also come out the strongest. Here are three key reasons for this conviction.
1. Airlines that stand by their customers in bad times win hearts – brand matters
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Just look at what’s happening in the western airlines in this recession. US Airways recently started charging for blankets, and they already charge for water (which can …

Re-posting here one of my favorite posts, originally published in early-2008, at the peak of the competition in Indian skies. Enjoy!
____________________
Sometimes, competition can lead to funny outcomes. Here’s what happened at a major crossing in Mumbai, India, when Jet Airways announced their makeover.

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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 …

S&M Airlines album coverImage via Wikipedia

Over the past few months, I’ve had a chance to interact with some of the brighest minds of the airline industry as well as key brand leaders. Though these were all individual interviews, there was a common question in all of them – “What’re your thoughts about airlines and branding in 2009″.

I’ve now compiled them in the video below and you can hear the expert views of Lisa Markovic – VP of Sales & Marketing at Jet Airways, Joe Crump – VP of Strategic Planning at Razorfish, Rodney Abbot and Randall Stone – Senior Partners at Lippincott.

Their predictions?
Fewer airlines at the end of 2009
Lisa  of Jet Airways feels that this is probably the most difficult of recessions for the airline industry. She believes that the year ahead will see a number of consolidations in the industry, and generally the larger airlines will emerge as dominant players globally.
Focus on customer service and the brand
Rodney from Lippincott believes that the fewer airlines that survive will have to focus on the brand …

…..

[caption id="" align="alignright" width="202" caption="Image via Wikipedia"]Departing on a test flight[/caption]

Jet Airways is relying heavily on ethnic marketing in the US to get in touch with its key target market of Non-Resident Indians (NRIs), and tapping on distribution networks like grocery stores to allow access to tickets! In this part 2 of the exclusive interview with Lisa Markovic, the Vice President of Sales and Marketing for Jet Airways in the US, shares with us ways in which Jet Airways is trying to trump the current economic crisis.
Flying through the current economy
Jet Airways has been targeting niche events such as Diwali celebrations and India Day Parade in the US to get targeted exposure with the people who regularly fly to India. Moreover, Lisa realizes that these customers “shop around a lot and do their homework before they make a purchaseâ€, and hence Jet Airways offers a product that offers “great valueâ€.
Alliances and more…
One of the mitigation strategies for the current crisis …

…..

[caption id="attachment_576" align="alignright" width="300" caption="Lisa Markovic, Jet Airways"]Lisa Markovic, Jet Airways[/caption]

Jet Airways has been the shining star of the Indian aviation industry, especially in the past 5 years, since liberalization. The airline established itself as the harbinger of positive changes in the region, and currently offers one of the best service in the Indian skies, their numerous industry awards a proof of that.

A couple of years ago, Jet Airways started international operations and currently offers direct flights to key destinations in India from New York, via their hub in Brussels. However, of late, the airline has struggled with the rest of the world airlines due to fluctuating fuel prices and the economic troubles. Seeking to douse my curiosity on how Jet Airways is dealing with this, I decided to get the inside scoop by speaking with the expert.
In conversation with an industry veteran
In Part 1 of this two-part interview, Lisa Markovic, the Vice President of Sales and Marketing for Jet Airways in the US, talks about how work at Jet Airways is different from her 22 years at Lufthansa. She shares the …

[caption id="" align="alignright" width="284" caption="Jet Airways employees protesting"]BOEING 091 test flight[/caption]

Last week, Jet Airways in India fired almost 1000 employees (and then re-instated them after a huge furor). In bad times, it’s natural for companies to cut costs, and reducing headcount is one of the ways to do that. But it was the method of communication that infuriated employees and resulted in widespread public protests.

Just like airlines cannot treat customers badly, they cannot treat employees badly too. After all, happy employees make for happy customers, who then form positive impressions of their interaction with the brand. One of the most successful airlines in the world, Southwest, treats their employees like customers and the results are there for all to see. Here are a few things other airlines can do to keep employees happy, by treating them humanly.
No surprises, please!
Most of the Jet Airways employees were hardly given any notice of the upcoming lay-offs. They were informed either a day before they were asked to leave, or on the day itself, in some cases. The news came to them as a shock, especially from …

[caption id="" align="alignright" width="202" caption="Image via Wikipedia"]Airbus A330-200 in the airline's new colour scheme[/caption]

India’s leading private airline, Jet Airways has just decided to sack 1900 employees following their wide ranging alliance with Kingfisher Airlines. The move is intended towards cutting costs for the carrier struggling with high costs in an unfavorable economic environment. But that’s stuff everyone already knows about.

Here’s something interesting I encountered this morning. A leading Indian news website, Hindustantimes.com carried the story of this sacking, along with pictures of protesting employees. Ironically, there was a Jet Airways banner advertisement placed right next to that news, introducing their new flights between Bangalore and New York (which also may just follow the San Francisco flight into oblivion). Be sure to check out this interesting post on another blog, with a similar issue about the A380.

Isn’t it so interesting? How do you think airlines can save their brands from such incidents like above? We all know that with the advent of online media and Web 2.0, it’s …

Key Flight Facts
Airline: Jet Airways
Travel purpose: Moving to Singapore to begin college studies
Departure from: Indira Gandhi International Airport, New Delhi, India
Arrival at: Changi International Airport, Singapore
Date of travel: 27 July 2008
Contributor: Shitij Nigam
Flight rating: 8/10

[caption id="" align="aligncenter" width="500" caption="Image courtesy Flickr user Guido Haesevoets"]Image courtesy Flickr user Guido Haesevoets[/caption]
Check-in
The check-in was process was swift and painless, and partially so because the airport was slightly empty (morning flights not exactly being the craze). The airport staff were also familiar with my Students Pass, something I’d been worried about previously, as to whether or not it would end-up causing unnecessary delays. The Jet Airways staff at the baggage check-in counter was nice enough to ask me about my college and course (and I was nice enough to explain. In detail.)

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