Flying higher - Change Agent

Flying higher

Making a national brand into a global one is tough

  • Branding April 2007

By Lewis Borg-Cardona

No airline features in the BusinessWeek top 100 survey of the best global brands by brand value. As long as existing regulations deny airlines the opportunity to have the commercial freedom enjoyed by other industries, this seems unlikely to change. “Airlines need the freedom to serve markets where they exist, consolidate when it makes business sense, compete efficiently with one set of global rules, and generate profits and shareholder value,” says Giovanni Bisignani, Director General and CEO of the International Air Transport Association.

Even global player Singapore Airlines (the world’s second biggest airline by stock market value) can only go so far with its iconic brand and “Singapore girl” image. The airline went international relatively early in its history due to the lack of a domestic market, making it one of a handful of airlines to do so. But it is still bound by the peculiarities of its industry.

“Airlines are based on networks – route and schedule. This makes all airline brands regional. Even a world-renowned airline like Singapore, the brand is not part of the customer’s everyday experience,” says Delta Air Lines Manager, Customer Insights and Analytics, Frank Wrenn. It’s a view echoed by others in the industry. “There are no airlines that can claim to be global brands – British Airways and Singapore Airlines are the nearest,” says Emirates Divisional Senior Vice President, Corporate Communications, Mike Simon. But the world’s airlines are in pursuit of the elusive holy grail of global branding.

Since 2003, the number of airline passengers has risen almost 25% to over two billion last year. New routes and increased flights to business destinations are generating much of this growth, with many airlines trying to turn an identifiable national product into a global brand.

In its 80-year history, Delta Air Lines has gone from a southern US carrier to America’s fastest growing international airline. It serves 304 destinations in 52 countries. Brand awareness is strongest in home markets like Atlanta and New York, but as Delta continues to grow, so does its global brand value. Last year the airline added 50 international routes – an ambitious expansion carried out following the results of a Synovate survey.

“Market research has been vital in determining customer expectations, perceptions of Delta and perceptions of local competitors. Research has also helped determine which new markets would be viable based on expected traffic,” says Wrenn. “A year ago, we worked with Synovate to hold focus groups of international travellers in the UK, France, Germany, Italy, Mexico, Argentina, Columbia, Brazil, Russia, India, Israel and Japan. As a direct result of these groups, we have since added new amenities to our international long-haul flights in the economy cabin, including free alcoholic beverages with meals, amenity kits and a mid-flight snack or ice-cream service.” Delta has also made its website accessible in French, German, Spanish, Italian and Portuguese, with more languages to be added later.

On the other side of the world, there is Emirates. Formed in 1985 as the international airline of the United Arab Emirates, Emirates’ growth has never fallen below 20% a year. The carrier currently flies to 87 destinations in 59 countries from its base in Dubai. “It is extremely expensive to become a global brand. Limitations include investments in equipment, traffic rights, marketing investments, and the ability to serve multinational markets 24/7,” says Simon.

The airline has marketed itself outside the aviation industry via a broad portfolio of sports sponsorships, ranging from Arsenal’s impressive new football stadium to the Emirates World Series horse racing championship. “Sponsorship enables Emirates to increase awareness swiftly in key markets like Australia,” says Simon. Last year Emirates became the first airline to be an official partner of the FIFA World Cup. “It is part of our bid to become a global brand – it has helped.”

National appeal – international scope
Despite its more modest network of 50 destinations in 28 countries, the SriLankan Airlines experience mirrors that of its larger rivals. As Head of Corporate Communications Chandana de Silva explains: “A significant component of our decision making is based on market research. Our service needs to exceed customer expectations and for that we need to know what our customers want.”

The revelations came in 1998, when the newly privatised airline changed its name from Air Lanka to SriLankan. “We found that the global perception and top of the mind recall to the term ‘Sri Lankan’ was warmth, friendly and a nation full of smiles. Today the airline represents all these values and has taken it further with its world class service.”

For de Silva, it’s clear what’s required to turn a national airline brand into a global brand: “Consistently exceeding passenger expectation with a very high level of service and offering passengers access to a wider network of destinations.” SriLankan is achieving its aims, having won several awards from travel media and airline industry arbiters. For an airline brand expanding beyond its regional boundaries, these awards provide another shop window, as SriLankan Airlines Head of Service Delivery Nigel O’Shea points out: “Winning awards such as Skytrax’s World’s Friendliest Cabin Staff gives us positive exposure, which it would be very difficult to achieve otherwise.”

That change in corporate identity coincided with the forging of a strategic partnership with Emirates. It’s not surprising that SriLankan also markets itself via sports sponsorship, including three surfing events and a regional rugby tournament. DeSilva calls these measures a “key component” of reaching out to potential customers and building on the positive outlook people have of Sri Lanka.  

Wrenn is clear who best exemplifies this world-class service: “The role of the flight attendant is very important to the brand. At Delta, our flight attendants are really our brand ambassadors. They spend the most time with our customers during the travel ribbon, reaching more than a hundred million passengers a year. How’s that for advertising?” ?ɬ�?��Ǩ���?Ǭ?

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