Thursday, 22 April 2010

The multi-million dollar Airline Brand Promise test

Yes, that sounds expensive. That is the price that many airlines have to pay to test their brand promise in the recent Eyjafjoell volcano eruption that closed down the entire European airspace for a few days. The International Air Transport Association (IATA) put the overall cost to the airline industry at $US1.7 billion ($A1.83 billion): at its peak, said IATA, the crisis was costing $US400 million ($A431.69 million) a day.

Now the blame game starts within the airline industry but they neglected a bigger problem; did airline brands pass their brand promise test to their tribes or customers? Who is ultimately going to recuperate these losses? Not the airlines themselves but their customers ultimately. Those who buy the tickets, experience the on-brand flight services where it all comes as a package.

Thousands of airline passengers are left stranded, angsty and stressed up. Some airports look like refugee camps. Airline brands are tested for their competence and service delivery at the ground level even before passengers step on the plane. Yes, the branded airline experience starts way before that.

One brand did shine. Singapore Airlines gave awaiting passengers hotels and meals etc. Yes, it costs about S$10 million dollars to do all of these. That is not including another S$30 million lost through this crisis. SIA shares dropped but I reckon their brand equity has raised another bar. Reinforcing their brand promise of 'A great way to fly', SIA won over confidence and continue delivering their on-brand experience. I will not be surprised they will not only cash back the S$40 million quickly but also increase their brand tribe many folds. That is again adversity that leads to opportunity and success.









Please leave your comments, if any. Picture taken from ABC news.

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