Bringing Airlines And Passengers Together In A New Age by Kane Minks

American Airlines Gate C17 at DFW. kane minks

by Kane Minks

As the world gets more interconnected and more populated, air transportation has become more in-demand, with passenger numbers increasing by the day. This should have made things easier for airlines, but competition is getting stiffer as countries, especially in the developing world, and individual investors from the industrialized west, set up airlines.
Professor Nawal Taneja, an internationally re-known airline industry expert, identifies development, branding and communication value propositions that are mutually beneficial to customers and airlines even during the challenges facing airlines today.

An airline’s core business is the reliable, safe and fast transport of passengers and goods. However, airlines have failed to effectively brand their products/services and to communicate their value added processes to customers. Inter-connectivity has raised expectations – passengers expect the same level of service from all airlines regardless of their social status or geographical location. This is a challenge airlines have not learnt to deal with effectively.

Airlines are part of the transport chain. They should adopt strategies that enable them work with others, integrating their services with those that are offered by other players in a seamless experience. To do this, airlines need to adopt what Prof. Nawal refers to as passenger centricity, where airlines have a better understanding of passenger needs, financial ability, and willingness to pay sustainable fares. This is what is referred to as passenger intelligence. Airlines can gain this by combining business and customer intelligence, where the information that is used is timely, relevant, authentic and accessible.

Airlines should embrace technology to enhance passenger value. One such technology is the internet which has turned airlines into retailers. These days, airlines sell their services directly rather than going through brokers as they used to do before. Passengers now do not need to go to airline representatives to purchase tickets but do so on the internet. This enhances the passenger experience offered to customers by airlines. By facilitating access to the internet when on board, airlines have transformed their cabins into workstations.  By doing this, they create communication lines with passengers who feel that their needs are being taken care of. Airlines should enhance this further by facilitating enhancements and options that are controlled by passengers.

A strategy airlines need to adopt fast is that of being solution providers rather than transaction providers. This is especially relevant where customer needs deviate from universal expectations for all airlines. Most airlines are aware that the purpose of a trip and regional cultures generate different customer expectations. Different airlines need different value propositions for customers. These may be cultural, regional, or segment based.The survival of airlines will depend on how fast they adopt technology. For example, EU airlines hard hit by high fuel costs, a recession, and fare competition are taking up technology-based strategies to revamp the industry. Integrated air traffic control zones create seamless travel experience for their customers and are just some of the strategies on the table. by Kane Minks

European Union Carbon Tax To Face A Mounting Battle From Countries And Airlines Around The World by Kane Minks

European Union on World Map. Kane Minks

by Kane Minks

The EU airline carbon tax may soon crash to the ground as a coalition of powerful nations threatens to launch a trade war against the European Union. Russia, China, America and India have formed an anti-carbon tax coalition to oppose the EU carbon tax and are planning retaliation against the EU if it doesn’t back down.

The EU’s Emission Trading Scheme (ETS) demands that carriers flying into European airspace pay a tax on carbon emissions. The law came into effect at the beginning of the year. The ETS requires all airlines to give the EU emission data so that a tax can be calculated and collected. Many airlines have told the EU to go fly a kite.

The airlines in the U.S. have requested that President Obama stop the EU action by filing an Article 84 complaint at the UN’s civil aviation governing board, which is called the International Civil Aviation Organization (ICAO). The U.S. airlines, which are represented by Airlines for America, said that an Article 84 action would create a global framework for dealing with carbon emissions. This UN mechanism allows nations to settle disputes.

Eco-fascists and the head of the ICAO oppose the Article 84 action, claiming that the process would gum up the effort to charge passengers and the airlines a tax as soon as possible. The UN and the EU could realize tens of billions of dollars from this carbon scam. The Eurozone, with a number of countries facing imminent economic collapse, is engaged in desperate schemes to prop up their falling house of cards.

Meanwhile, the U.S. Congress is getting into the act by writing a bill that would shield U.S. airlines from the EU carbon scheme. Senator John Thune, a republican from South Dakota, and Senator Claire McCaskill, a democrat from Missouri, have co-sponsored the bill.

Internationally, the EU is standing alone on this carbon scheme and facing severe consequences if it goes ahead with this tax. The U.S. has called this carbon scheme an attack against its sovereignty. The government of India has formally backed its airlines and their decision not to give the EU any carbon data. China has threatened the EU with a trade war. Punishment against the EU could include limiting flights from Europe and refusing to buy aircraft from European manufacturers.

Under the EU carbon tax scheme, passengers will be expected to pay a punitive tax on every ticket they buy. This will increase airline travel expenses and make Europe a less desirable destination for tourism and business. The world is trying to save the EU from its’ big mistake.

Kane Minks

Spirit Airlines hit with lawsuit over fees – Business – MiamiHerald.com by Kane Minks

English: Spirit Airlines N587NK (an A321-231) ... Kane Minks

Spirit Airlines hit with lawsuit over fees – Business – MiamiHerald.com.

Kane Minks

Interesting story. Spirit is an Ultra Low Cost Carrier that makes their profits from exorbitant fees. The only thing included in their basic ticket price is the seat and the ability to carry on one personal item (like a purse or backpack). Everything else incurs a fee. This lawsuit is in reference to a certain fee they have been charging their customers for years. Their passengers love to hate them for their fare structure, but in the end they always come back. They simply offer the cheapest fares to some of the most popular destinations in the U.S., Central America, and South America. A Spirit Airlines Case Study will follow shortly……

 

Kane Minks