Last May, we wrote an article about Delta Airlines “rebranding” campaign in which we called it a wasteful idea. It was (and still is) our position that Delta’s focus on corporate imagery as the external communication of their brand was poor use of resources especially since that inspiration was coming out the defunct Song Airlines model of “branding.” In light of the direction Delta and other airlines have taken in the past year, it appears we could not have been more correct.

Falling Stock Price

Granted, Delta’s stock price has not fallen by 66% (20.72 on May 3, 2007 to 7.01 on April 25, 2008) over the past year simply because of a poorly conceived rebranding campaign. Nearly all domestic, full-fare carriers saw a decline in ridership. In fact, the only full-fair domestic carrier in the top 10 that posted a gain was US Airways and that was because of their merger with America West Airlines. However, Delta was the only airline to tell the market that their rebranding campaign was designed to:

“reflect Delta's successful transformation into a highly-differentiated, customer-focused airline.”

From a brand point-of-view, it appears that Delta did not follow through on that promise. Delta appears to be no more of a “highly-differentiated, customer focused airline” than it was before the branding campaign. But really, the other airlines, except a small few, don’t really have a clue on how to successfully brand either.

Unchanged Business Model

Think about this: In today’s age of modern technology, the airline industry is one of the very few industries that has not changed since its infant stages. In fact, saying it has not changed is not exactly true. It has changed, for the worse! Sure, they lose a few less bags, but that small improvement has apparently come at the expense of increasingly poor customer service, cramped planes, and horrid in-flight service. Pretty sad considering the airline industry is supposed to be a service-based industry.

The Disconnect

This is where the disconnect lies in the airline industry as a whole – understanding the definition and synergies of the business of the business (what you do or make) and the business of your brand (what you are and what you mean). For the airlines, the business of their business, in its most simplified state, is moving people from one place to another. As a category, there are a number of options or brands that will accomplish this. All are as safe as the others, most will eventually get us there (barring a sudden stoppage of service as in the case of Skybus ceasing operations or American’s recent maintenance issues), and the price of one carrier to the next is relative, as route availability becomes an issue and a pressure on costs. But generally speaking, in the airline business, satisfactory performance is expected.

Business of the Brand

In looking at the business of the brands for the airline industry, it is clear there is no understanding of what that means. Delta’s corporate “rebranding” was a prime example of that and a symptom of a much larger problem in the airline industry. At a bare minimum, the business of an organization’s brand should be focused around what that organization means to its customers and how those customers see themselves as they use the brand. What Delta did with their freshened logo and corporate imagery was not “customer-focused.” It was company-focused. Their rebranding campaign did not come from those they serve but from those who are supposed to serve. This is the problem with the airline industry as a whole. They look at the market from their vantage point, not from that of customers, because they know we have few alternatives other than driving, taking a train or some other form of transportation that doesn’t get us there as quickly. It is the same-old, same-old regardless of what airline is being flown. But this acute problem can also be a springboard for a domestic carrier to buck the status quo and steal market share from its competitors.

An Opportunity Ripe for the Taking

An airline with the fortitude, determination, and vision to position itself as the “alternative” to the market has an opportunity to change the face of the entire industry (just ask Southwest). But, as Delta found out, it has to be more than just in a new logo and some slick PR. It has to be a sea-change in culture, from the gate attendants to the pilots, from the flight attendants to the executive committee. Tell passengers they are smart for having chosen you and then pay it off with an unexpected level of service even when issues arise that are out of the airlines control like delays due to weather or air traffic control. Return air travel to an experience, not an ordeal. Passengers will reward you for it with increased preference and revenue per passenger, two benefits associated with having a brand that resonates with your target market. Granted, this is an extremely tall order for an industry that seems so hell-bent on doing what it always has done. But if domestic carriers wish to do more than just survive (a proposition that is also becoming more and more difficult) then it is essential they develop brands from the customer’s perspective, buck the status quo, and serve rather than be served.