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Ramesh Narayan

Low prices are great but image building is really important. There are no substitutes to building relationships with the customer.


Air Deccan had good advertising and great rates but made no attempt to endear itself to the passenger. The airline is going for the customer a second time and it better get it right this time.

I stroll into the airport in Mumbai and my eyes are drawn to the young and enthusiastic people in yellow T-shirts that seem to say "Wow." A second look tells me these are all employees of Air Deccan and their T-shirts pose the question "Have you flown Air Deccan lately?" or something to that effect.

The key word in the message is obviously "lately." And there lies a classic lesson for all of us, more relevant today than ever before.

Air Deccan started the apparent gold rush towards the low-cost carrier (LCC) segment. Its proposition was as simple as it was logical. Air travel in India, as it was all over the world till a few years ago, was the preserve of the lucky few. You were either well-heeled or on a company account. Or you were, unfortunately, hurrying to a funeral. That just about summed up the profile of the air traveller in India.

The LCC proposition promised to change all that. Suddenly, fares plummeted. And as Captain Gopinath and his pretty inspired advertising said, anyone could now "simplifly."

It was a bold new world that was being ushered into India. Technology in the form of telecommunications and the Internet was supposed to help cut costs for the LCCs. And so were the type of aircraft used and the many new routes that would be opened up. And who cared if you were not offered a cold towel, a hot meal and an after-dinner mint on board your one-hour flight for which you had paid just a three-figure fare?

The civil aviation sector was sizzling and new airlines were springing up like mould on a damp and rainy day. They confidently proclaimed that they were not competing against each other but against the monolithic Indian Railways. Statistics about rail fares and traffic were bandied about and even more low-cost carriers took to the skies. Air shows abroad crackled with news that hundreds of aircraft had been ordered by Indian airlines.

Then slowly horror stories about endlessly delayed flights and cancellations began to trickle in. The first brash response from the LCCs was that at such low fares, it was obvious that the hapless passengers could not expect a meal or a ride home or a hotel room if a flight was cancelled.

People began nostalgically remembering those deadpan announcements that regularly exhorted Indian Airlines passengers on some delayed flight or the other to proceed to the cafeteria for lunch or dinner.

As fuel prices spiralled and seat capacity increased, Jet Airways was no longer the darling of the stock exchanges and Air Deccan barely lurched home with its IPO.

And now, the yellow T-shirts were being donned and a brand was being built. A brand backed by an experiential promise. What are the lessons airlines have to learn from the past?

Low prices are great but image building and brand building are really important in the demanding world we live in today. There are no substitutes to building relationships with the customer.

Examine the situation of a few of the airlines.

Air Deccan had good advertising and great rates but made no attempt to endear itself to the passenger. It suffered because of a really bad image compounded by delays and irate passengers. Today they are extolling the "wow" factor and offering an experience. Obviously for all his experience and capability, Capt. Gopinath had forgotten what a poor image had done to the Indian.

Even today, the aggressive advertising talks about a great on-time performance while an asterisk explains that on-time means any flight that departed within one hour of its scheduled time of departure. Canny advertising or an apathetic ethos? Either will not help in the long haul.

Today's customer, as is the case in any industry, gets used to low prices very quickly. What next, is the question on their minds. It is imperative that the passenger gets a quality product. And in this case all it demands is a safe flight that departs and arrives on time. That is really not too much to ask for. Air Deccan is going for the customer a second time. They better get it right this time. I doubt they will get a third chance.

Jet Airways built a fantastic brand. It was based on quality in every aspect of flying and backed with good advertising. It even offers great fares these days. Its losses are definitely not a factor of poor brand building and one can still hope to see a turnaround in its fortunes, if not in the share price.

Kingfisher should never have tried to position itself as a low-cost carrier. This columnist wrote about it a long time ago and in fact suggested the introduction of a business class. One is gratified to note that someone in the airline is thinking on the right lines. Vijay Mallya is the face of the airline and should be the face of the airline. Forget about unnecessarily large advertisements with Yana Gupta pitching for Kingfisher. Outside the advertising world and Zoom, not too many people identify with the lovely lady.

With its spanking new aircraft and impeccable service, Kingfisher will have to position itself as a niche full-service airline with the trappings of luxury complementing the romance of travel. Kingfisher is not competing with Lalu Yadav. It is competing squarely with Jet Airways and can actually pull things off as long as it doesn't lose too much money and steam on the way.

Spice Jet has used the power of PR to the maximum effect. I have marvelled at the editorial publicity it manages to garner every time it has even the most mundane thing to announce. A really effective PR agency is obviously hard at work and it shows.

Go, though really small as yet, got off to a right start by consistently talking about the new aircraft and its commitment to on-time performance right from the word, well, go. The image-building exercise is definitely on the right track.

The point to be made is that while low cost is the mantra and it seems to be working globally, there is a need to provide the customer with a pleasant experience. A memorable one, if possible. And that means conscious and consistent image building. In every way one can. At every customer touch point.

Have I forgotten our venerable public sector national carrier? I had, for several years, till a few days ago when I was booked on an evening Indian flight from Chennai to Mumbai. The fare was attractive and the timing convenient, so I brushed aside earlier memories and decided to give it a chance. The baggage screening and check-in was quick and smooth. The security announcement seemed to indicate an on-time departure. I boarded a huge A300 of several decades vintage but was pleasantly surprised to note the interiors were in rather good shape. The flight departed on time (15 minutes grace is par for the course) and I requested the flight steward who was handing out juice cartons for the morning newspapers (I am a newspaper addict). He politely promised to look for them and vanished. I triumphantly told the pretty lady next to me that this was the last I would see of him. The safety drill was carried out, the flight levelled out and snacks were served. And then to my complete surprise, the young man apologised for the delay and presented me with two neatly folded morning newspapers. Amit Negi had done Indian proud. And I was a convert.

That's what customer touch points are all about and this is what word-of-mouth can do for an image. Get your new aircraft and keep this up Indian, and watch your image soar as high as your aircraft do.

Ramesh Narayan is a communications consultant.

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