Airline Branding and the Customer Experience Tony Davis Gramercy Associates Limited 11th October 2016

Airline logos have been amongst the most iconic in history

Airline logos have been amongst the most iconic in history ……. but historically airlines have had a poor understanding of brand management

Pre 1980s - Highly Regulated Industry Network and capacity strictly controlled – destinations, frequency, size of aircraft and airlines must be owned by nationals of the home country Fares and tariffs co-ordinated and agreed between the airlines, pool agreements to share revenues on specific routes Product controlled through trade association (IATA), size of meals, entertainment, baggage allowance

Airlines didn’t compete – they co-ordinated ! IATA trade association acted as cartel Most airlines and airports were nationalised Airlines traded on national or regional identity Used as instruments of foreign and economic policy Travel agents controlled the distribution process Airlines lost money

Almost every airline name was geographic

Absence of competition on price, product and network Traded on national identity, customs, culture Patriotism Safety record Types of aircraft being flown Cabin crew

Post 1980s – Liberalisation and the introduction of market forces US deregulation starts in 1979 – consolidation and establishment of national carriers and Southwest/Laker EU single market extended to aviation in 1992, removal of tariff co-ordination, network limitations, ownership restrictions – Ryanair and British Midland Bilateral and multilateral open skies agreements, establishment of airline alliances

Airlines were now forced to compete Network freedom including cross border in Europe Pricing freedom – one way fares Direct sales – travel agents replaced by internet Technology replaced paper tickets with email confirmation Airports and airlines were privitised – new capital Some airlines started to make money !

Some “Flag Carriers” tried to cross-borders with new brands

Some believed in teaching old dogs new tricks

And some believed in starting from scratch with sound business principles

Successful airlines became brands not logos Value for money Don’t over promise and under deliver Balance being in the transportation business with the glamour of the “jetset” Secure loyalty in a competitive market place Use brand and logo as part of the distribution process

Not all airlines got it right Touch and Go Airlines - Russia BRA - Brazil Ransome Airlines - USA Hooters Air – USA Vanilla Airlines – Japan Gandalf Airlines - Italy

It’s not just airlines that have identity problems East Midlands Airport Useless loop Airport - Australia Mafia Airport - Tanzania Black Tickle Airport - Canada Asbestos Hill Airport - Canada Fukui Airport - Japan

Thank you