What defines a best airline?

What defines a best airline, considering the different surveys that rank them? Conde Nast Travel has just released its readers’ choice of the best in 2017, and it is no surprise the list is made up of Asian, Middle East, European and SW Pacific carriers.

Courtesy Air New Zealand

Of course, it depends on the readership, but recognizing that, it also points to what really makes these airlines stand out. It is clear that the premium class service weighs heavily – the seat comfort and the fine food.

Etihad Airways (ranked #16) offers “the future of first-class comfort: a three-room “residence” with a bedroom, private bath with shower, and lounge.” Emirates (#4) offers “posh perks for premium fliers – cocktail lounges, in-flight showers… part of the reason it scores so high among travellers.” And the suites on Singapore Airlines (#3) offer “a pair of fully flat recliners that can be combined into a double bed.”

Mention is made of the premium economy class in almost all the ranked airlines” KLM (#20), Lufthansa (#19), Japan Airlines (#17), All Nippon Airways (#13), Qantas (#12), Cathay Pacific (#10), Virgin Atlantic (#7), Virgin Australia (#6), Singapore Airlines (#3) and Air New Zealand (#1).

So it may appear to be the voice of the premium travellers that is being heard. Maybe coach travellers aren’t too concerned about the ranking, more driven by price and less frilly factors, although to be fair, the Conde Nast report did mention of at least one airline, i.e. Etihad Airways (#16), not ignoring “those sitting in the back.” While many travellers may resign to the belief that the economy class is about the same across the industry, it is reasonable to assume that an airline that strives to please its customers in the front cabins will most probably carry that culture or at least part of it to the rear.

Although you may draw consensus across many of the surveys, it is best best to treat each one of them in isolation. It is more meaningful to try and draw intra conclusions within the findings of the particular survey.

You will note in the Conde Nast findings, there is an absence of American (including Canadian) carriers, never mind that of African and South American carriers.

Asiana Airlines (#8) is ranked ahead of Korean Air (#11).

All Nippon Airways (#13) is ranked ahead of Japan Airlines (#17). V

Virgin Australia (#6) is ranked ahead of Qantas (#12).

The order of the “Big 3” Gulf carriers is as follows: Qatar Airways (#2), Emirates (#4) and Etihad Airways (#16).

Of European carriers, there is the conspicuous absence of the big names of British Airways (compare Virgin Atlantic #7) and Air France, and the pleasant surprise of Aegean Airlines (#9) while SWISS seems to be regaining its erstwhile status years ago as being the industry standard.

The best belongs to Air New Zealand as the quiet achiever.

Ultimately, the results also depend on the group of respondents whose experiences may be limited to certain airlines.

Other airlines ranked in the top 20 of the Conde Nast survey: Finnair (#14), Turkish Airlines (#15), EVA Air (#18).

Advertisements

Joon: Basic yet chic

Courtesy Air France

What’s basic yet chic? That, says Air France, is the design of the uniform for cabin crew of its new subsidiary airline, Joon. You can expect to serve flight attendants in trendy casuals that include blazers, polos, ankle pants and sneakers. Apparently it is Silicon Valley inspired.

A statement issued by Air France said: “Its visual identity is based on an electric blue colour code symbolizing the airline’s dynamic attitude, as well as the sky, space and travel.”

Believe it, the colour has much to do with the kind of image projected by the airlines. Targeting millennials, Joon moves away from the convention of a neutral and sedate hue for something more in line with the outgoing disposition of younger jet-setters.

Many years ago when Singapore Airlines (SIA) launched a regional carrier called Tradewinds, there was much ado about the crew uniform to project the more casual mood of leisure travel – something you might wear on a vacation. That changed when its successor SilkAir took over to target business travel and other more serious travellers as well.

Courtesy Scoot

But it is Joon that is going completely millennial, right down to white trainers.

Courtesy Air Canada

Meantime, Air Canada is going retro. Its maple leaf logo design returns to the airline’s look 24 years ago, incorporating the circle loop. Black replaces red in the letterings on the aircraft, and flight attendantswill match with black uniform highlighted with a red tie or scarf.

Looks like you either go hip or nostalgic if you want to make a statement.

What do millennials want?

Courtesy Air France

Air France may have struck it right in launching Joon as a “lifestyle brand” targeting millennials, designed to meet the requirements and aspirations of a young working clientele whose lifestyles revolve around digital technology.

Goodbye baby boomers, hello millennials!

Air France defines the new generation of travellers as aged between 18 and 35 years. Quite aptly, the name Joon is a play on the French word “jeune”, which means “young”.

What do millennials want, travelling?

Millennials are IT-savvy and rely on electronic tools and applications going about doing the things they do. For them, for example, a paper boarding pass is a thing of the past when a smart phone can do the job. Social media is very much a part of their lives.

Millenials value immersion in cultural experiences more than mere sightseeing and collecting souvenirs of the places where they have been. Instead of popular tourist destinations, they prefer adventures to exotic places that are usually off-the-beaten-track.

While millennials are not particularly thrilled by frivolous frills, that does not mean they travel cheap. Far from it. They are in fact brand conscious, and would pay for something that they fancy or must try. But they will not spend on stuff that do not value-add their experiences. That way, they can afford more experiences, travelling more frequently.

Millennials are the NOW generation, who are prepared to rough it out if they had to. For them, travel is more a means to an end. They are therefore less likely to complain about not being pampered by the crew on board, but they do expect efficiency and immediacy of result. Hence, the absence of fuss, boosted by technology capability that allows room for them to exercise some degree of control of what they need and want, appeals to them.

It is this new generation of travellers, says Air France, who inspired the formation of Joon which will take to the sky in fall.

Airlines target millennials with lifestyle branding

http://www.todayonline.com/commentary/airlines-target-millennials-lifestyle-branding

Air France to “boost” performance with new low-cost carrier

Legacy airlines in Europe have long been feeling the pinch from low-cost carriers such as Ryanair and Easyjet. Now it looks like Norwegian Air Shuttle and WOW Air are pushing them to look farther before they lose more ground.
Lufthansa already offers a low-cost trans-Atlantic option from Europe to Las Vegas, Orlando, Miami and Seattle in the United States.

The International Airlines Group which owns British Airways, Iberia, Aer Lingusm and Vueling has just added another low-cost carrier – Level – to its stable. Level, based in Barcelona, will fly to Los Angeles and Oakland in California USA, Punta Cana in the Dominican Republic, and Buenos Aires in Argentina. Fares start at the familiar €99 reminiscent of the Norwegian and WOW Air’s promotions.

Courtesy Air France

Following in their footsteps is Air France, which announces the formation of a new subsidiary low-cost airline – Boost as its working name – planned to commence operations in winter. The airline will fly from the main hubs of the Air France/KLM group to destinations in Italy, Spain and Turkey initially, and then farther to destinations in Asia. Norwegian is already flying to Bangkok and will in October connect London with Singapore.

But Boost will be taking on full-service airlines as well, such as the Middle East carriers of Emirates Airlines, Etihad Airways and Qatar Airways which are already ruffling the feathers of the regional big birds of Singapore Airlines and Cathay Pacific.

The developments point to a gradual convergence of the low-cost and full-service product perceived value wise. It’s the antithetical success of low-cost carriers pushing to bridge the gulf and the failure of legacy airlines not being able to maintain if not increase the differentiation. It looks like the European tug-of-war is pulling the legacy airlines towards the centre line.

Airlines brace for the hard times of a troubled Europe

Two British Airways aircraft, with British Airways plane taking off in background.

Two British Airways aircraft, with British Airways plane taking off in background.

IT is easy to blame Brexit. International Airlines Group (IAG) which owns British Airways (BA) and EU carriers Iberia, Vueling and Aer Lingus, says the weak pound has caused its operating profits for Q2 (Apr to Jun) to fall below forecasts, even the number (€555m) (USD618m) is higher than a year ago ((€530m). The weak pound has cost the airline €148m.

But, of course, BA is a key contributor to IAG’s bottom line. IAG is not too upbeat about the immediate future as it “continued to experience a weaker trading environment in our UK point-of-sale business, which represents around one third of total revenue.”

The situation is definitely not helped and in fact made worse by the slew of terror attacks across the continent. Other European airlines such as Air France-KLM and Lufthansa are also under a lot of pressure to keep the numbers up, warning that travellers would avoid coming to popular destinations in their home countries.

Air France-KLM reported a 5% dip in revenue for Q2 to €6.22bn. The airline said: “The global context in 2016 remains highly uncertain… resulting in an increasing pressure on unit revenues and a special concern about France as a destination.”

So the problem is not entirely Brexit. And as the pound weakens and reduces purchasing power, and so too as travellers stay away from popular tourist destinations across Europe, the paradox is that airlines will be persuaded to reduce fares to shore up the demand for seats.

Ryanair CEO Michael O’Leary, referring to recent bombings, said: “Airlines have to respond with lower prices to keep people flying.” This will at the same time exert pressure on rival airlines to similarly take the same course. Mr O’Leary predicted average fares to fall approximately 7% this year.

Fortunately the continuing low fuel prices are working in the airlines’ favour although many are already complaining about the need to lower prices. So don’t expect the fuel surcharge to come down.

Budget phobia grips European airlines

Courtesy Getty Images

Courtesy Getty Images

THE strike by German airline Lufthansa’s pilots may be over a different personnel issue, but it reflects similar circumstances faced by Air France (see Air France/Union dispute reflects a divisive and unsure industry, Oct 3, 2014).

European airlines are gripped by budget phobia as both Air France and Lufthansa have blamed the strikes not only for the costly disruption of flights but also for hindering their efforts to effectively compete with the likes of Ryanair and easyJet through their respective subsidiaries, Transavia (Air France) and Germanwings (Lufthansa).

On the one hand, it is an issue of fair employee compensation and welfare, and the integrity of the human resource administration. On the other, it is a matter of survival in the competition that ultimately must address the issue of costs.

The imbroglio can only benefit the budget carriers, as disgruntled travellers switch their allegiance. easyJet announced a windfall riding on the Air France/union dispute, which had boosted its revenue by £5m (US$5.35m) (see Easyjet rides on Air France’s troubles, Oct 8. 2014).

Lufthansa management has offered to retain the pension scheme for employees who joined the company before this year. The scheme allows pilots to retire at age 55 but they will continue to receive up to 60 per cent of their pay before regular pension payments kick in at 65. However, Lufthansa will increase the retirement age for new recruits.

Apparently the pilots union has proposed a plan to cover the costs of retaining the current scheme. It would be interesting to find out what.

The industrial action has cost Lufthansa 70m euros (US$89m). The airline failed to get the court to declare the strikes as illegal, and the Vereinigung Cockpit (VC) union does not rule out further action.

Until the dispute is settled, budget carriers can look forward to a better year-end season as travellers make advance bookings for Christmas and the New Year. easyJet announced it has sold 25 per cent of its seats for the next six months.