Airline Business

AirAsia premier dishes out the red cards

2012-05-25T10:59:38Z

Niall O'Keeffe, managing editor of sister title Flight International, sends this report:

Few were spared when jovially combative AirAsia chief Tony Fernandes addressed Airbus's Innovation Days event in Toulouse yesterday.

Once Fernandes had exhausted his reserves of magnanimity with a fulsome tribute to outgoing EADS chief Louis Gallois - after whom AirAsia has named its 100th A320 -no one was safe. First to get it in the neck during the special guest's wide-ranging speech was no less a luminary than Germany's Chancellor. "The [A320 delivery] ceremony was suppose to be in the evening but Louis had a meeting with this woman. Her name is Angela Merkel. I don't know why he dumped her for me. I'm much better looking... But I suppose the German Chancellor is more important than someone who's bought 375 planes." Cue much squirming among the Airbus contingent, and much guffawing elsewhere in the room.

At least one Liverpool-supporting journalist in the audience was highly gratified when the soccer-obsessed Fernandes trained his sights on a certain rival club. "As a small brand, we sponsored Manchester United," he recalled. "Very painful for me to sponsor Manchester United because I hate that football club. But you have to be a prostitute once in a while."

Or, as he put it more diplomatically: "We only had seven planes, but we went out there and sponsored Manchester United, and we were there with huge brands: Vodafone, Budweiser. But we were never afraid. Many airlines don't see the value of branding and we wouldn't have grown from 200,000 passengers to 32 million without the branding we did."

Still on the soccer theme, a more self-deprecatory note was struck when the low-cost airline supremo - who owns London club Queen's Park Rangers - spoke about AirAsia's decision to sponsor the UK's Premier League referees. "This has haunted me, because my club's had the most people sent off," he lamented. "I will be stopping sponsoring the referees. But it's been fantastic."

How did he land the deal in the first place? "I went to the Premier League, and it was me versus Emirates, and Emirates had a gazillion dollars, and I had about 10. So I made a big presentation and said, 'Listen, you've got to support us. There's about two people in Dubai who watch football, and in Malaysia we've been watching football for a hundred years - plus, we've been fixing all your games. All the bookies come from Malaysia.' Finally, I think I got it because I said, 'I want to sponsor the red card.' And they looked at me and said, 'What do you mean?' I said, 'When you send a player off, I want to see airasia.com - and on the other side it says: now you're suspended, have a holiday with AirAsia.'"

Involvement in soccer allows AirAsia to brand itself "the airline with balls", Fernandes explained, noting, needlessly: "In Asia you don't do these things, but we do it."

Naturally, the former music-industry executive found time to tear into local competitor Singapore Airlines: "If you really look closely at Singapore stewardesses, they all look the same. They have the same bun in their hair, the same lipstick, the same nail polish, and the same fake smile. I'm sure they're manufactured in Lee Kuan Yew's back garden."

The taunting didn't stop there, "When we went to Singapore, we decided to be a bit cheeky, and we took this ad out and we put four of our girls there, and we said, 'There's a new girl in town. She's twice the fun and half the price.' Instantaneously, everyone in Singapore knew us, and I received 50,000 letters from Singaporeans who said, 'Whatever we do we will fly AirAsia.'" Later, he had another dig. "Singapore Airlines is a confused puppy," he declared, citing the "ridiculously named" subsidiary Scoot. And he sounded a warning: "One day I'm going to buy Singapore Airlines."

With tongue firmly in cheek, Fernandes availed of the Q&A session to deliver an analysis of flight-crew compensation. "Pilots are paid too much. All they do is taxi to the runway, take off, switch on autopilot and then bitch about the company for the next two hours."

All in all, this was a rant to remember. Michael O'Leary and Akbar Al Baker will have to go some way to top it.

For hard news from Airbus's Innovations Day event, visit flightglobal.com/pro

ALTA CCMA checks in to Cancun

2012-05-22T13:22:45Z

As the great and the good of the Latin American and Caribbean industry meet this week in Cancun for ALTA CCMA - the region's major annual airline-supplier event - what are the key challenges facing the maintenance sector in this part of the business?

Check out our special Airline Business edition for the event examining some of the key issues facing the maintenance sector in Latin America and the strategies of key players in the region, including:

Aeromexico and Delta's joint venture plans
Mexicana's MRO ambitions
The growing role of aircraft manufacturers in the after-market business
The development of TAP Maintenance and Engineering Brazil

Read the full digital edition here

Find out more about CCMA 12 here

What's not to love about Farnborough?

2012-05-13T14:59:45Z

Simply driving onto the Farnborough airfield show ground is enough to start my feelings of anticipation grow as I drive to a pre-Farnborough Air Show 2012 press briefing.

I love Farnborough, always have since my first visit as a kid in 1974 (the Blackbird was there - now that was cool). Some of my friends in the media hate Farnborough (or Paris, take your pick), but I've always loved the intensity of these industry fanfares.

For those of us who have visited Farnborough countless times over the years it is a familiar place. There are the classic chalet rows, which have been virtually unchanged for decades. The four main halls scale the steps that lead up from static aircraft parking area.

The organisers of Farnborough, with chief executive Shaun Ormrod to the fore, are doing their best to keep the show relevant and customer friendly. There are lots of special features, like the Aviation Security Zone (sponsored by Flightglobal partner FLIR Systems), an Innovations Zone, a Futures Day and a Space Zone.

Ormrod tells the press corps that "2012 is looking like it's going to be a really great show". Here's why:

* 98% of the chalet space is sold (only 2 units left)

* 100% of the halls are sold and there is a waiting list

* The aircraft static park is full and there is a waiting list.

For now the flying display is OK but not overwhelming (the Red Arrows will be there of course).

Russia's Yakovlev Yak-130 trainer is coming, which is nice but not exactly earth-shattering news. No word on whether Boeing's 787 or 747-8 will be either flying, flying past or on static. Boeing promises news on its presence shortly.

The coolest new arrival is ground-based - for the time being. After much persuasion from the Farnborough team, Virgin Galactic has agreed to bring its SpaceShipTwo mock-up to the show.

This will be the first time Virgin Galactic has shown SS2 in Europe. Now that is cool.

The press briefing is over and the countdown clock to Farnborough 2012 is ticking.

Flightglobal will be there covering the show via our fantastic show landing page, our mobile app, interactive Flight Daily News, the Flight Daily News paper and much more!

Don't forget our Live Streaming of the air display - which will be found via Flightglobal.com.

Bring on the show!

Six decades at FL360 - plus ca change...

2012-05-12T20:20:32Z

...plus c'est la même chose. This month marks the 60th anniversary of the first jet passenger service - operated, as I'm sure we all know, by a beautiful BOAC de Havilland Comet.

And while I could use this anniversary as an excuse to drone on about the Comet and all that it promised for British aviation prior to its grounding after a spate of tragic accidents two years after its debut, I thought it would be more appropriate to reflect on what that sunny day in May represented for the world and globalisation.

More than any other moment during the 109 years since the first powered flight at Kitty Hawk, 2 May 1952 revolutionised air transportation and marked the start of the modern era of jet travel. For when those 36 passengers departed London (Heathrow) Airport bound for Johannesburg, much of what they experienced for the first time as members of the public has not changed one bit in the ensuing six decades.

After the flight lifted off from Heathrow's runway 27L (okay, it was called runway No 5 back then), the Comet climbed to an initial cruising height of 36,000ft (FL360) and a speed of 525mph (845km/h or 460kt TAS), and later climbed as high as FL400. Passengers on tonight's flight BA57 to JNB on board a 747-400 will no doubt be experiencing a not dissimilar flight profile (but without the five refuelling stops!).

Prior to the arrival of the Comet, air passengers lumbered around at heights no greater than 25,000ft in the piston and early turboprop airliners of the day. So in 1952 the Comet - as the world's first operational jet transport - delivered for the first time a flying experience to the air passenger that would differ little in terms of speed and height for the foreseeable future (with the exception of those lucky enough to experience Concorde during its 27-year reign).

The onboard environment is of course a different story. The Comet's narrow cabin (above, via British Airways) was one area that harked back to the immediate post-war era in which it was spawned. It had just 36 seats arranged in a fairly cosy layout, with a club eight arrangement in a forward, private cabin (often the preserve of the Hollywood set, apparently) and the remaining 28 seats in the main cabin - all four abreast. Aft of the cabin was the entry foyer and "dressing rooms and toilets - ladies port and gentlemen's starboard".

This was a world away from the first class cabins of today's long-haul network carriers (Etihad's illustrated), but there is no doubt that the Comet's occupants still found themselves in a quieter, smoother and more comfortable world than anything they had experienced previously when on board one of the lumbering, propeller-driven predecessors.

That first jet service to Johannesburg took 23h 38min, and was flown by BOAC Comet Yoke Peter, shaving an amazing 17h off the existing service operated by a Douglas DC-6B. The return fare in 1952 was £315.The flight arrived in JNB two minutes ahead of schedule after a routing which involved refuelling stops in Rome, Beirut, Khartoum, Entebbe and Livingstone. There were two crew changes - one in Beirut (where Capt Michael Majendie was relieved by Capt J Marsden) and the other in Khartoum (where Capt Cliff Alabaster DSO, DFC (the former BSAA pilot who crewed the first ever flight from Heathrow in 1946) took over for the final legs to Johannesburg).

Such was the novelty that de Havilland's jet delivered to civilians in terms of high altitude cruising, that a book - Comet Highway - was commissioned to celebrate the views from the Comet's passenger windows. As the book summarised it so succinctly in its foreword: with the arrival of the Comet "the World would never be the same again".

It added: "Swift and secure high-altitude flight is no longer the prerogative of the specialist few, for the Comet has brought it to the multitude, and many thousands of everyday travellers have already experienced the wonders of jet flight at eight miles a minute in a magic world eight miles above the levels of the oceans."

I couldn't have put it better - de Havilland, the Comet and BOAC: We salute you!

Read Flight's news report on the World's first jet airliner service, in its 9 May 1952 edition, here (from our archive)

IAG and a tale of two cities

2012-05-11T22:08:43Z

First quarter results from British Airways and Iberia parent International Airlines Group really underscored the tales of two cities in the group; London and Madrid.

On the face of it the respective capitals of the UK and Spain share some common fortunes, not least that both countries are now back in recession. Charges too are on the rise, through air passenger duty in the UK and proposed hike in airport fees at Madrid.

First quarter results though - Iberia contributing €170 million to the group's €249 million operating loss - provide a pointer to the differing fortunes in London and Madrid. And this was underlined by IAG executives during their results conference call today.

Chief financial officer Enrique Dupuy pointed to the strong performance in the London market as key to the strong revenue performance - up almost 8% in the first quarter on fractionally higher capacity. Chief executive Willie Walsh was equally positive about the resilience of the London market. "Although the UK economy is in recession, we are not seeing any evidence of that in our Heathrow hub."

And now with a bunch of much prized new slots to play with through the BMI acquisition, even the long-standing frustrations of capacity constraints at the airport are alleviated for BA - at least while it shuffles its new slot pack.

By contrast Madrid is providing plenty of headaches for IAG right now. EasyJet chief executive Carolyn McCall earlier this week identified Spain as probably the hardest market for airlines right now, with the combination of high capacity, economic woes and planned new charges which could be implemented from June.

For IAG it has had to grapple with labour issues in its efforts to overhaul short-haul flights at Madrid, a path it has tackled through the recent creation of new short-haul operation Iberia Express. It also faces moves to significantly raise airports fees at Madrid Barajas Airport.

"The Government has indicated it is likely to increase the charges - we are obviously campaigning against it, as are other airlines that operate at Madrid," said Walsh today. "If they go ahead, I believe it will have an impact on the capacity plans of all airlines at Madrid airport. I would not be surprised to see a reduction in capacity, not just at IAG, but all carriers, if these charges are increased."

Another rugby crazy airline chief

2012-05-10T12:45:20Z

With Harlequins and Manchester City both in pole position in the England's rugby and football premierships, Etihad Airways' sports sponsorship investments look to be very prudent.

While Manchester City, owned by an Abu Dhabi-based oil magnate, was already rising to prominence and is a natural fit with the Abu Dhabi-based carrier, the reasons behind the decision to sponsor Harlequins appear less clear cut.

Struggling in the premiership until this season, when they finished first on points heading into the play-off deciders, only a true rugby aficionado could have understood their potential for success and the coverage that would bring.

With big sponsorship decisions usually made at boardroom level in large companies, has the hand of Etihad's chief executive James Hogan, a renowned rugby enthusiast, played a part in the airline's sports marketing strategy?

His comment that "the partnership with Harlequins has provided Etihad with an impressive platform to connect with customers in the UK", after an extension to the Harlequins contract was signed, suggests it might well have been.

Liberté, égalité, fraternité and Air France-KLM

2012-05-09T13:20:14Z

Like his predecessors, newly-elected French president Francois Hollande has the right to free business-class travel on Air France-KLM flights.

However the durability of this arrangement could be tested not only by Hollande's unwillingness as a socialist to be seen as exploiting the privileges of his office, but by his level of interference with the group's attempts to restructure.

Hollande has been quoted in the French media as saying French companies had taken decisions to make redundancies, but had been told to refrain from cuts until after the election, something denied by Sarkozy's team.

During his campaigning in which jobs were a key issue, Hollande was quoted as saying: "I won't allow this cortege of redundancy plans to take place."

Now it remains to be seen which companies the victorious Hollande was referring to, with a number of France's biggest companies looking to restructure including banks, car manufacturers and telecoms companies.

With Air France-KLM due to implement the second stage of its Transform 2015 later this month or in June, it could be first to test how Hollande will react if it decides to make large number of redundancies or substantially cut salaries. With the French government owning around 15% of Air France-KLM shares and having representatives on Air France's board of directors, Hollande could certainly make life difficult for both the group and the airline if he wished.

However analyst Neil Glynn of Credit Suisse who follows Air France-KLM feels it is unlikely that Hollande will radically interfere with its plans "given the extremely challenging financial condition of the company". With the government representatives having backed the group's management in its plans so far, Glynn sees no reason why this would differ.

Air France-KLM's chief financial officer, Philippe Calavia, also stated the group's determination not to back down in its negotiations with unions over wage cuts as it seeks to achieve a 20% reduction in operating costs.

Speaking in a conference call reporting Air France-KLM's 2012 first quarter results, he emphasises the need for "higher productivity and flexibility". Describing these as an "absolute necessity", he says: "We won't back down, personally I won't back down."

Calavia's words were interpreted by some observers as a statement not only to the unions, but to Hollande.

Perhaps the fact that Hollande is alleged to have flown into Paris on a Dassault Falcon 900 private jet after his election victory, rather than with the French flag carrier, could indicate what is to come?

Jumbo evolution - the Lufthansa way

2012-05-05T19:57:59Z

Lufthansa celebrated the arrival of its first Boeing 747-8I on Wednesday in a hangar at Frankfurt airport, where 1,200 invited employees - and a few journos - got a chance to preview the latest iteration of Jumbo Jet.

Clockwise from top left: 747-200B, -200B (new colours), -8I and -400

Lufthansa will have the honour of debuting Boeing's sixth iteration of passenger-carrying 747 when it puts the new jet into service on 1 June between Frankfurt and Washington Dulles. Four more of the 362 seaters are due to arrive this year, with 15 more slated to be delivered through 2013-2015. Other destinations that should be graced by the Lufthansa 747-8I this year include Chicago, Los Angeles, New Delhi and Bangalore.

Upper deck - 1975 versus 2012

Lufthansa has been a big fan of Boeing's big jet right from the start. It has already taken delivery of almost 60 passenger 747s, has flown many of the variants including 747-100, -200B/200B combi, -200F, -400/400 combi and now -8I. It was also the first to introduce the type in Europe in April 1970 (between Frankfurt and New York).

First class in the nose - 1975 versus 2012

And apart from its very early 747-100s - which were Pratt & Whitney powered - all have been equipped with General Electric turbofans. The latest iteration is of course powered by a derivative of the GEnx developed for the 787.

Sadly, Lufthansa also had the ominous distinction of being the first airline to suffer a 747 fatal accident, when one of its -100s crashed on take-off from Nairobi in November 1974.

Jumbo cabin cabin crew now - and then

Given Lufthansa's four decades of 747 history, it is appropriate to use the arrival of the first 747-8I to examine how Jumbo cabin fashions have evolved over the ages.

Remarkably, Lufthansa's original 747-100 seat count was just one different from today's 747-8I - 361 versus 362. But that is where the similarities end. That first aircraft had 28 first class seats and the rest was economy. Today's -8I has just eight first class seats (all located in the nose section) and 92 in business. The remaining 262 are economy.

First class on board the -400 in the 1990s - and now on board the 747-8I

Another big difference between 1970 and 2012 is the upper deck. These were originally used as lounge or break-out zones for premium passengers to relax in en route. Today's -8I with an extended upper deck that is similar in area to the cabin of a 737-700, puts the space to good use by accommodating 32 business-class passengers in luxury that far surpasses first class from four decades ago.

The 747's cockpit has changed quite a lot over the years too, primarily through the elimination of the flight engineer and his associated panel. However pilots converting from the 747-400 will struggle to tell the difference when they step on to the flightdeck of a -8I, as this is one area where little has changed between 1989 and 2012. But that speaks volumes for how advanced the -400's cockpit was back then when it was first introduced....

Read more about Lufthansa's 747-8I introduction and how it will operate alongside its Airbus A380s here, and view video on board the new Jumbo here

And check out Lufthansa's impressive 747-8 micro-site here

Below: First and latest - Lufthansa's original 747-100 series and its new 747-8I

Everything you wanted to know about low-cost carriers but were afraid to ask #1

2012-05-02T22:51:12Z

Its been another year of growth and expansion for low-cost carriers. 2011 saw double-digit revenue growth almost across the board. Southwest Airlines completed its acquisition of AirTran to underline its position as the biggest budget carrier by a distance, while organic growth remains strong among other low-cost carriers. And while high fuel prices took the edge of low-cost carrier profits, the sector largely remained profitable for the year.

All this and more is discussed and illustrated in the second Airline Business low-cost carrier interactive special, which is now published and can be downloaded for free here.

You can find out who were the ten biggest low-cost carriers by revenues in 2011, read our profiles of the airlines and analysis of some recent developments and challenges they face. Check it out here.

Our interactive edition is packed full of content, but let me draw your attention to our special interactive map charting a decade of dynamic growth across Europe's budget sector. We've charted the rise of low-cost carriers across the continent by tracking of budget airline bases in Europe since 2001 - when Ryanair signalled it intentions to be a pan-European operator with the launch of its Brussels Charleroi base.

Along the way it tells the story of dynamic growth, with a few false starts on the journey, and of how the sector came to redraw the map of short-haul air travel in Europe. Click here for more.

INTERIORS: IFE and seat designs finally coming together

2012-04-05T13:47:25Z

It has been a couple of years since I have been to the Aircraft Interiors Show, the annual exhibition for all things cabin interiors held in Hamburg last month, so it was interesting to see how this part of the business has moved on.

During one of panel debates at the related Cabin Innovation & Strategies for the Future conference on the eve of the show, Panasonic Avionics vice president global communications David Bruner said the IFE suppliers were "very close on the heels" of consumer technology and talked about the different approach in terms of seat integration. "For first the time now you are seeing seats really designed for the IFE," he said. "It's not just practical, but beautiful."

A look around the various exhibitors' stands during Aircraft Interiors seemed to bear this out. For example Thales was demonstrating its new generation Avant IFE system integrated into various seats - demonstrated in this picture by the head of Thales' in-flight entertainment business Alan Pellegrini - and both the modern feel of the system and the design of its integration into the seat make them appear much more natural bedfellows than seats and IFE systems of the past.

You can read much more on IFE and all aspects of cabin interiors development with our three editions of Flight Daily News from the recent Aircraft Interiors show.

Read the issues here:

http://www.flightglobal.com/air-shows/aircraft-interiors/iflight/

Latest Panasonic technology shows Minority Report-style gesture control to be old news

2012-04-04T10:39:48Z

With interiors innovations seemingly having gone as far as is currently possible in creating more cabin space through redesigning physical fittings such as storage lockers and seating, it appears the only way to increase it further is virtually.

A research and design demonstration from Panasonic demonstrating the possibilities offered by integrating, eye tracking, gesture control and voice command into an IFE interface, shows the extent to which a passenger's environment can be enlarged electronically.

This is done both physically, by eliminating the need for physical controls, and virtually by allowing passengers to explore virtual environments, both real and artificial.

The user is able to navigate these digital landscapes simply by looking at different parts of the screen as their eyes are tracked by camera. The IFE system provider's demonstration model at Aircraft Interiors Expo 2012 in Hamburg allowed users to roam around a variety of settings such as their arrival airport and city, views from around the aircraft or a virtual meadow.

"As airlines try to cram more passengers on-board, how do you create that feeling of space," said Panasonic Avionics' corporate communications manager Brian Bardwell.

He sees the system as moving IFE "way beyond entertainment, this is a business platform". Explaining some of its potential for business applications, he says that passengers can virtually browse commercial premises in their arrival destinations before they've landed.

Bardwell says the system requires 30-40 cm of distance between the user's face and the screen to operate and can be installed in screens as small as 9-inches. While no launch date has yet been announced for a gesture controlled IFE product, he says "we're really shocked by how positively the airlines have reacted to it and we'll be releasing it as soon as possible. "The technology's available now so this should easily be available [onboard aircraft] within two years," he says.

It is intended to be part of an complete IFE system which could include gesture recognition, voice control and seat vibration.

Panasonic's eye tracking system has a distinct in-flight advantage over other gesture controlled devices, controlled in the manner of Tom Cruise's computer in the film Minority Report, to which it seems compulsory to make reference when writing about gesture control.

Accurately controlled using tidy movements of the eye, the system does not require dramatic gesticulation of arms, which when in closely confined economy seating could increase a feeling of confinement rather than reduce it.

The curtain comes up as the countdown begins at Berlin Brandenburg

2012-03-22T19:29:08Z

Air Berlin used the occasion of its accession into Oneworld this week to showcase its new home airport - or what will become its home 73 days from now. The new Berlin Brandenburg International airport will finally unify the city's airport system which has been split across three sites for much of the time since the city's division after World War II. Unification of Berlin's airports began with the closure of the iconoic Templelhof airport in October 2008. The second and final stage will come with the closure overnight of the existing Tegel and Schonefeld airports and opening of the the new Brandenburg airport, located next to the old Schonefeld site, on 3 June.

The ceremony was the first such event at the new airport and was marked by a double debut, the first Air Berlin aircraft (an A330-200 and 737-800) at the airport and the first in Oneworld colours.

"It is a great honour for us to be hosting this event. It is the first time aircraft are catered on the new apron," said Berlin Airports chief executive Rainer Schwartz, joking: "It proves that the concrete is dry." But, noting the airport will be Oneworld's third busiest in Europe, he believes the airport provides the opportunity for growth. "With their own pier at BER, we are offering airberlin and oneworld partners first-class travel comfort, everything within easy reach and minimum connecting times."

Air Berlin chief executive Hartmut Mehdorn also stressed the opportunity. "We are going to develop the new airport into a hub," he said. "We are waiting for the new airport, we are very confident it will be ready on time. We are confident it will give us the chance for the business to grow."

Other Oneworld carriers could be tempted in."I think there is going to be a great opportunity here at Berlin," said American Airlines chief executive Tom Horton. "It's certainly something American Airlines is looking at."

Read much more about what Air Berlin brings to the alliance and the positioning of Oneworld after the financial setbacks of several of its members, or prospective members, here.

The airport is still a construction site, but all appear confident of meeting its new June opening target (this slipped from an original October 2011 target to ensure security facilities complied with new European Union requirements).

The size of the task, closing down two airports and switching to a new one overnight, is enormous. And great effort is going in to ensure there is no repeat of the operational teething problems that have dogged so many airport openings, not least the high-profile baggage problems at the Heathrow T5 home of Air Berlin's Oneworld partner British Airways. This work includes a fourth-month testing period with an army of volunteers testing the facilities by simulating the check-in process at the airport, before boarding a bus, and going back round to do it all over again.

PanAm history in its own words

2012-03-22T19:06:55Z

Here's a unique take on a well-known story. A new book has just been released on US carrier legend Pan American World Airways, which offers an insight into its colourful history through those that worked at the airline.

Pan American World Airways - Aviation History through the Words of its People is a collections of contribution from 75 writers including pilots, flight attendants, station manager and other staff contributing to this anthology of the airline. Covering more than six decades of history at the airline until its demise in 1991, the contributions cover some of the news-making events which dominated its history, including the first Boeing 707 flight, the introduction of Boeing 747s, hijackings, the first visit of the Beatles to the USA

The book is co-authored and co-edited by James Patrick Baldwin, an adjunct instructor at Embry-Riddle Aeronautical University and Jeff Kriendler, formerly vice president - corporate communications at Pan Am.

The book is published by Bluewater Press and you can find out more about it here.

BA loyalty gets the personal touch

2012-03-01T16:53:23Z

Frequent flyer programme initiatives at British Airways, India's Kingfisher Airlines and Virgin Australia were all recognised in this year's Loyalty Innovation Awards, held during the Airline Business/Global Flight organised Loyalty 2012 event in Berlin.

BA was picked out for its personal recognition initiative, a programme which has seen it develop 50 areas where the airline could improve personalisation by pushing this into the customer experience for its frequent flyers.

"We were getting a lot of feedback from customers that wanted more personalisation," explained British Airways manager of Exec Club communications, Nathalie Masoin, who collected the award on behalf of the airline at the event in Berlin.

One initiative for example has seen the crew delivering personalised messages from the airline to key regular flyers onboard the aircraft via an iPad app. That has increased delivery of personalised messages to customers by 87%.

Based on its regular benchmark satisfaction survey, she points to a 14% increase in satisfaction among its gold members since it rolled out the initiative.

Virgin Australia was recognised by the judges for its Velocity Frequent Flyer programme, which has seen it double engagement levels and the rate of member acquisition since its launch four months ago. The move supports the evolution of the carrier, which has moved from its low-cost carrier Virgin Blue origins, further towards the business market - a sector in which it competes against the highly successful Qantas FFP. "We wanted to focus on the business traveller as we had to unstick members from our competitor," explained Andrew Mason, manager Velocity Airline Partners at Virgin Australia.

Restructuring Indian carrier Kingfisher Airlines received a tonic with an award for its Feel the Force initiative - creating a fantasy Formula 1 product within its King Club scheme to tie with last year's inaugural Indian Grand Prix.

Find out more about the Loyalty 2012 event here - next year's event is in Dubai by the way - or by the #Loyalty2012 tag on Twitter.

Read out recent feature on the challenges facing airlines in maximising the potential of their loyalty programmes, both through the way they structure their loyalty business and in their efforts to engage infrequent travellers.

Kenya Airways set for gear change

2012-03-01T10:33:38Z

This month's cover interview for Airline Business was Titus Naikuni - Kenya Airways' long-serving chief executive. Now nine years into the job, this marks the second time he's been on the cover of Airline Business (you can read our cover interview with him from December 2005 here).

In a wide-ranging interview at the carrier's Nairobi headquarters, Naikuni talked about the growth opportunities for the airline - notably within Africa and longer-haul towards Asia. It comes as the airline is embarking on a major expansion - this could see Kenya Airways nearly double passenger numbers to 6 million over the next five years and take delivery of its first (and much awaited) Boeing 787 at the turn of 2013/14.

Read more on this, plus Naikuni's take on the challenge of Africa's stalled aviation liberalistion and the carrier's plan to develop its cargo and regional businesses in the FULL INTERVIEW HERE, together with photos and data about the airline.

It was a bit a cloudy day when we were in Nairobi, but the sun finally appeared in time for the photoshoot and the great pictures from our friends at Billypix gave us something of a nice headache for which picture to use on the cover. We love the striking image we ultimately went for, but it was a close run thing between that and this equally good shot below (only finally decided a couple of hours before we went to print!!!)