![]() Financial Daily from THE HINDU group of publications Thursday, Jul 29, 2004 |
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Catalyst
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Strategy Logistics - Airlines Columns - Scene & Unseen Romancing the skies Ramesh Narayan
THE Emirates commercial says what it wants to, against a backdrop of little bubbles rising steadily through the amber glow of chilled champagne. To me, that just about sums up what the experience of flying is supposed to be. Clean springy carpets, a hushed elegance, luxurious leather seats that transform into beds and transport you in a dream world of gently clinking crystal and shining silver. Lovely young ladies who softly pad around you adjusting cashmere blankets so they are just right. Well-designed menus that offer you a choice of various cuisines. Thoughtful goodie bags that are supposed to remind you of the flight to somewhere or the other. This isn't some flight of fantasy. It is what good old brand building conjures up when you think of an international flight. Airlines have romanticised flying. It probably harks back to an era where you either had to get people used to a new and somewhat scary form of transport, or justify its comparatively high cost. Time was money, and only the moneyed classes opted to fly. I recall an extreme case of misplaced perception when a middle-level executive of a PSU bank once told me that he was entitled to any class of train travel, even AC first class which was then nominally less expensive than the cost of an air ticket, and stay in a hotel overnight to catch the next available train back after completing an hour's work, but rules did not permit him to fly. Obviously, his time wasn't considered money. International airlines went to town assiduously building images of caviar and champagne. Singapore Airlines chose their legendary Singapore Girl campaign created by Ian Batey to epitomise the ultimate in-flight service standards. Many airlines threw in a limousine pick-up for the well-heeled traveller. Airlines highlighted food, frills and fantasy as hooks to lure the high flyers. The honeymoon looked like it would never end. Indians, of course, were in another world till a few years ago. If you worked for the Government, you had to fly Air India. If you were a middle-level government employee, you were herded into cattle class (economy) along with the squalling babies and Gulf returnees. If you were sufficiently high up, you were upgraded to first class and you freeloaded at the cost of the exchequer. If you travelled in India you flew Indian Airlines. As and when they decided to fly you. The result was there to see. Time changed all that. Damania, Jet, ModiLuft and East West took to the skies and Indians were treated to the romance of flying too. The advertising for these airlines took the same route, offering to pamper the flyer in every way they could. I recall boarding a Damania flight at 7a.m. feeling my stomach churn as I saw the pretty flight stewardess emerge with a tray full of frothing beer-filled glasses. The feeling turned to amazement as I saw her return with an empty tray. Not for a moment am I explaining away Damania's nose-dive to this phenomenon. It was early days and lessons were being learnt. Today there is a new breeze blowing in the aviation skies. One that threatens to blow away the carefully built luxury propositions of airlines. One that is a true challenge for the brand builder. We have entered the era of commoditising the airline industry. At least of short- and medium-haul sectors. And brand building for a commodity is always a daunting proposition. Singapore Airlines has its "value" airline in place. So do many others all over the world. Southwest, Ryan, Value Jet are all success stories. Meanwhile, the giant American airline companies such as Delta, United and AA are now being branded as "legacy airlines". One short hop before they are referred to as dinosaurs? Gopinath and his Air Deccan seem to have survived the little fire in the early days of their operations and are spreading their mantra of "Simplifly". The ripple in the Indian aviation scene seems to be growing into a wave. Low-cost airlines are the flavour of the season. They are not simply competing with each other, they are taking on the mighty Indian Railways with fares that are aimed at two- and three-tier AC passengers. They could be taking to the skies like locusts. And where would that leave our grand legacy airlines such as Air India, Indian Airlines, Jet and the like? Air India has already announced its own foray into the value area. It could rationalise its sectors and keep its "econojets" buzzing between India and West Asia, Sri Lanka, Malaysia and Singapore. Keep in mind the fact that foreign travel is now going "budget" too with even travel loans becoming popular. Jet has expressed an intention to possibly enter this sector too. It would also hope for the opening up of international routes to plan some differentiation between its offerings. Yet cannibalisation of existing customers seems inevitable. One can think of service, space and food being important on a long-haul flight. What would be the differentiator offered to customers in the domestic sector? Consider what the average busy executive wants out of an airline. "Get me from point A to point B safely, and on time". Frankly, on a ninety-minute flight, not too many people could be bothered with seat width, pitch, silverware, damask serviettes and a choice of three menus. Sure, there will always be a market for the creamy layer, with pink ribbons attached if they so desire. That, however, will be a niche market. The high volumes lie in the low-cost sector and building customer and brand loyalty there will be the next challenge ahead. We live in exciting times. Should that read exacting? (The author heads Canco Advertising.)
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