Airlines Try to Land the Right Image

After being badly bruised by the Gulf War and the recession, the nation’s airlines must face up to yet another problem: an identity crisis.

With similar aircraft, prices and service, the role of shaping a distinctive and favorable corporate image is a difficult and expensive task for the major carriers. The industry’s consolidation, international expansion and frequent fare wars have only served to muddle corporate identities and reputations.

“Are they really differentiating themselves from one another?” asked Don Casey, a corporate image consultant and former airline marketing executive. “I’m not sure they are. I look at the category, and (its image) is almost invisible today.”

American Airlines, for instance, now flies around the globe, and Delta Air Lines has expanded worldwide from its traditional stronghold in the southern United States. “Airlines do have a real challenge to define for themselves what their new reality is,” said Clive Chajet, chairman of Lippincott & Margulies, a New York-based corporate identity firm.

The recession, which has forced airlines to intensify their fight for customers, has heightened awareness about the importance of a clear public image that cuts across a barrage of promotions and hype.

“The stronger their image is, the more likely that they will be the airline of preference,” Chajet said. “If everything is the same, and in many instances they are, then image is everything.”

The importance of a separate identity is not lost on the airlines. However, they are also well aware of how difficult it is to develop.

“You have to provide a level of service that truly differentiates itself from the other competitors,” said Michael W. Gunn, senior marketing vice president at American Airlines. “But it’s very difficult to differentiate yourself on the notion of product.”

Some fault the airlines for failing to come up with new and meaningful programs and services that will attract attention and set them apart. Without their recent international expansions, the airlines have not had much new to say recently, according to marketing analysts.

There really have been no innovations since frequent flier plans were introduced a decade ago, said Casey, president of Landor Associates, a corporate image consulting firm. “Against such a bland marketing background, when someone introduces something new, people are willing to try it.”

The major airlines--such as American, United and Delta--may have had little room to create distinct personalities in their pursuit of the mass market and the lucrative business traveler.

“They all built their airlines . . . on the business and corporate travelers,” said Donald G. Valentine, vice president of sales and marketing at Dallas-based Southwest Airlines. “It basically resulted in no difference.”

When all the major players chase after the same--though lucrative--chunk of the market, the result is homogeneity in service, fares and scheduling. For business travelers, scheduling is the most important element of air travel, beyond even price.

The recession has also forced airlines into onetime promotions focused on price that may divert attention from long-term efforts to build corporate image.

“I’m just not convinced that those promotions in this environment will stimulate more incremental traffic,” said Gunn at American Airlines. “We don’t change our marketing strategy much. It goes back to the notion of value and consistency.”

But within the past year, recalcitrant travelers have been showered with discount fares, coupons, free tickets and Canadian gold coins. Alaska Airlines has given away gold Canadian maple leaf coins to launch Los Angeles-to-Toronto service. British Airways gave away 50,000 tickets on international routes.

During economic slumps, the industry “moves away from mostly image-oriented promotions to a short-burn, sell-the-seat promotional type of program,” said Valentine at Southwest. Valentine’s airline has pursued the same route, but he noted that it does not deviate much from a corporate image that emphasizes low prices.

Most carriers are loathe to compete on the basis of low prices, let alone base part of their corporate image on that. Price cuts not only hurt the bottom line, but they are easily matched by the competition, airline executives said.

“They are not willing to let us have a price advantage,” Bill McKnight at Alaska Airlines said of his rivals. “Typically, we stick to a very basic message: service, service, service. That’s what we have built our company around.”

It seems that every airline these days wants to differentiate itself by touting a high and consistent level of service. Alaska, for example, promotes its extra legroom and the quality of its in-flight meals as elements that place it above the competition.

But it only takes one flight to determine whether an airline can live up to its corporate image, Chajet said.

“The secret is in the execution,” said Chajet, who notes that well-trained employees are the key to delivering the service that many airlines promote. “Everybody is striving for the obvious. But only a few are to be believed.”

The Big Tease Promotions were plentiful this year as the airlines tried to attract attention and passengers. But the same promotions distracted attention from the long-term image advertising and marketing efforts.

Alaska Airlines: Free Canadian Gold Maple leaf coin to launch Los Angeles-Toronto service.

British Airways: 50,000 free tickets on international routes.

Southwest Airlines: Free round trip with the purchase of unrestricted, round-trip ticket.

Trans World Airlines: Coupons for discounted business fares.