HIGH STAKES
High Stakes™ provides best practices for communicating on the most critical corporate, legal, and international issues of the day.
THIS ISSUE: THE AIRLINE INDUSTRY: CRITICAL ISSUES PROLIFERATE
Two weeks ago, the Air Transport Association announced that – for the first time in history –
U.S.
airlines had gone two years without a single passenger fatality.
Last week, a U.S. Airways jet safely set down in the
Hudson River
after losing both engines.
It’s not hard to identify which story got more attention. As it turns out, the headline “Plane Lands Safely” does, in fact, sell newspapers; but only if the plane lands on a rather extraordinary substitute for a conventional runway.
In this issue, we outline strategies for the airlines to combat a steady stream of negative press with messages of safety, service, and savings…Gain insight from Dr. Sally Ray, the acclaimed author of Strategic Communications in Crisis Management: Lessons from the Airline Industry…Examine the blogs that the airlines should be watching…And look ahead to how emerging technologies will exert even greater pressure on the airlines in the months and years to come.
Strategies: Communicating safety, service, and savings
It is a monumental challenge to communicate total commitment to safety, customer service, and consumer savings when the slightest lapse in any of these areas leads to a media feeding frenzy. Yet, that is exactly what the airlines must do to manage public perception. To succeed in such a charged environment, airlines must understand that public reaction to any crisis they might encounter is rooted in emotion, not intellect – as Air
Canada
’s Jazz Air learned when it announced that it was removing all life vests from its flights in an effort to cut costs.
At the time, it must have seemed like a good idea. Fuel costs were rising, the life vests added an extra 50 pounds to each flight, the seat cushions could double as flotation devices, and – as a regional Air Canada carrier – the chances that a Jazz Air jet would ever make a water landing were slim to none. But as the media firestorm that followed demonstrated, it is vitally important to not underestimate the emotional power of even the most symbolic gestures in the marketplace.
For years, life vests, seatbelts, and locking overhead storage have provided air travelers with the feeling of safety. When Jett removed one of those symbols, it created brand liabilities that negated any bottom-line gains. When influencing buying decisions, emotions trump facts every time.
It is in this context that airlines should approach any crisis that may emerge – whether it be a crash, a delay or cancellation, or bankruptcy rumors. Again, the salient challenge facing the airlines today isn’t shaping what their stakeholders think; it is changing how they feel.
Safety. The recent announcement that the
U.S.
airline industry has gone two years without a single passenger fatality provides a telling example of how airline messaging has not yet realized its immediate potential. That safety record should be headline news, yet it has wound up more or less buried in the media because it was not accompanied by a strong supportive communications offensive. The airlines likely still have opportunity to buttress what we know to be true – that airline travel is by far the safest mode of travel – with a tangible story that also makes us feel it is true.
Service. Delays and cancellations ignite frustration and anger. It is an issue that the industry has often handled reactively and apologetically, meanwhile fueling discontent with frequent overbooking. The aforementioned safety record of the last two years is practicable here too as a powerful explanation and justification for why, in their scheduling practices, the airlines prefer to err on the side of caution.
Savings. Cutbacks and no-frills flights have become marketplace negatives as airlines struggle for ways to save money. Yet it was not so very long ago that Southwest carved an enviable niche in the industry by actually underscoring its economizing measures and thus differentiating itself on the basis of cost-efficiency. It’s a marketing lesson that can be usefully re-learned.
Industry insight: Dr. Sally Ray, author of Strategic Communications in Crisis Management: Lessons from the Airline Industry
Dr. Sally Ray is the Assistant Dean in the Potter College of Arts and Letters at
Western
Kentucky
University
and a nationally recognized expert on the airlines’ response to crisis. As the author of the critically-acclaimed, Strategic Communications in Crisis Management: Lessons from the Airline Industry, she shared her insights with High Stakes™:
What are the greatest communications challenges facing the airline industry today?
Dr. Sally Ray: Few industries generate the amount and intensity of attention given to airlines. The highly complex, competitive, and interdependent nature of the airline industry places airlines in a chronic crisis phase. While major commercial airliner crashes may be the most dramatic and visible, historically, airlines have been vulnerable to various types of crisis events including sudden market shifts, financing, top-management succession, mergers, strikes, government dictates, air piracy, adverse international events, and in-flight crimes. These events are generally unpredictable and have potentially negative consequences that may significantly damage the public perception of an airline.
In light of this turbulent context, communication challenges include finding ways to broaden interaction with stakeholders, investigating innovative communications opportunities through online and social media, addressing emerging issues brought on by the economic downturn, and persuading organizational leaders and decision-makers to consider the big picture.
Have airlines like Southwest and JetBlue indeed led the pack in terms of communications? If so, what are they doing right, and why does it seem so difficult for other airlines to follow suit?
Dr. Sally Ray: Southwest Airlines and Jet Blue continue to maintain a high reputation among the largest
U.S.
airline carriers. In addition to positive perceptions of company strength in service, innovation, workplace, citizenship, governance, leadership, and financial performance, these companies have built and continue to maintain a positive reputation. Southwest rises to the top as they have been able to maintain their image as a well-run, low-cost carrier with a happy workforce.
Who can forget JetBlue’s crisis in 2007 – the worst crisis in its brief history – when a snowstorm turned into a disaster because of enormous operational shortcomings within JetBlue. In the end, 1,096 flights were canceled, and thousands of passengers, flight attendants, and pilots were stranded.
Rather than hide, CEO [David] Neeleman stepped up, assessed the situation early on, and spoke to the press. He explained exactly what went wrong and apologized. He took control to earn back the public’s trust. He was timely and authentic in his communication.
Why is it difficult for other airlines to follow the examples of Southwest and JetBlue? From my perspective as a communication analyst, the answer lies in communication processes within organizations. Ineffective and inefficient communication networks within organizations often fail to foster important learning by, first, hampering the very development of new knowledge necessary to prepare for the future, and second, by obstructing access to existing knowledge to deal with relevant problems.
If I were the Communications Director of a major American airline, what would be the three most important things for me to remember in 2009?
Dr. Sally Ray: First, listen to the concerns of stakeholders, take these concerns into account, and respond accordingly. Information is the best weapon in the arsenal of today’s strategic communicators.
Second, develop innovative ways in which to engage key stakeholders. Do not rely on outmoded practices and ideas.
And third, practice authentic communications. Information is so readily available that existing and prospective customers have immediate access to knowledge of the quality of a company's products and services. Exaggerations, false claims, and inaccuracies are easily identified requiring that organizations maintain authenticity inside and out.
Blogs and the airline industry
From delays and cancellations to crashes and bankruptcy filings, the blogosphere is brimming with chatter about the issues that keep airline stakeholders awake at night. By monitoring and engaging the online conversation, carriers stay on top of reputational issues and even bank some goodwill in the process.
Here's a look at three blogs you should be watching to stay ahead of the curve:
Dallas News’ Airline Biz Blog
Airline Biz covers the full spectrum of airline business news, from job cuts to corporate earnings to aviation accidents. Maintained by Terry Maxon of Dallas News, this blog takes advantage of its location in a national aviation hub to get the inside scoop on how airline news affects both consumers and investors.
USA
Today’s Today in the Sky with Ben Mutzabaugh
USA
Today’s blog on airlines and flying provides frequent updates on developments in the aviation industry. Industry news includes major
U.S.
airlines as well as airport developments, traffic levels, and expansions.
Cranky Flier
Produced by a former travel agent and airline aficionado, this blog details both industry developments and news for consumers. Emphasis is placed on how current aviation events will play out for the average flier.
What’s next? A new kind of competition
The next wave of competition for airlines isn’t coming from within the transportation sector. It is coming from those who aim to make business travel altogether obsolete in the coming years – and who stand ready to leverage each and every negative airline story to their advantage.
You’ve probably already seen the commercials being aired by teleconferencing technology companies that highlight the litany of headaches any average business traveler might confront when flying. These ads are aimed right at the airlines’ most valued customers and further cement the perception that air travel is simply too expensive and troublesome an option when there are viable alternatives available.
To stay one step ahead, the airlines should make enhanced customer service a cornerstone of their strategic communications. In certain areas, it’s as simple as ensuring that there’s a human voice on the other end of the phone when consumers call for flight information or to lodge a complaint. Or, it can be as complex as mobile e-mail alerts that keep customers abreast of delays and cancellations – and, most important, the reasons why either is taking place.
The airlines must realize the greatest danger lies not in what others – however sophisticated and resolute these competitors may be – are doing to damage their reputations, but in the things that they themselves do to reinforce the perception that others are trying so hard to encourage.
When news cycles are measured in minutes rather than hours, rapid responses to crisis are absolutely essential to winning the communications battles.To help ensure success in the Court of Public Opinion, Levick Strategic Communications presents the Crisis Communications Desktop Reference. It is a fully searchable, downloadable desktop resource covering more than two-dozen topics of urgent concern to business. It provides, with a click of the mouse, the strategic guidance you need at the moment a crisis strikes. Download the complementary Crisis Communications Desktop Reference today.
Making Your Point
Making Your Point, a new book by Levick Senior Vice President David Bartlett, examines the fundamental strategic considerations driving effective communication. It defines that key component called “emotional intelligence.” It provides the simple powerful tools to make a point in person, prepare and deliver effective speeches and presentations, get messages across in a media interview, and communicate during crises. Making Your Point is an easy-to-use communications guide for professionals and non-professionals alike. Order your copy today.
Stop the Presses: The Crisis and Litigation PR Desk Reference – now in its second edition – is a survival manual for corporate leaders, board members, lawyers, and communications specialists. This book provides the dos and don’ts of crisis planning and communications and articulates the essential strategic guidelines for navigating myriad bet-the-company issues. Order your copy today.
Future High Stakes™ issues
Communication and Current Financial Crisis:
In 2009, the rules have drastically changed for corporations and financial services providers. To succeed in a perilous new environment, companies must demonstrate leadership through publicly articulated reforms.
Labor and Employment:
Outsourcing jobs is the latest among many recent communications challenges for management – especially if newly elected politicians pursue their agendas.
Energy:
With a newly-empowered President and Congress looking to make good on its green promises, how can energy companies position themselves at the forefront of sustainability?
More to come:
- Antitrust
- Board or Board Member Liability
- Coming to America
- Diversity
- Education
- Executives Behind Bars
- Food
- Global Capital Markets
- Intellectual Property
- Internal Communications
- Internal Investigations
- Monetizing Moments
- Money Laundering/Money Transfers
- New Media/Social Networking
- Product Liability
- Professional Services Crises
- Public Equity
- Whistleblowers
- Reputation Management – Celebrity
- Reputation Management – Corruption
- Reputation Management – SEC Investigations
- Tourism
- Trade
Next month in High Stakes: CORPORATE COMMUNICATIONS IN FINANCIAL CRISIS: THE NEW PARADIGM
