10 | What Would Howard Hughes Do?

I read The Economist, though not as frequently as I ought to. Aside from the constant reminders that the Arab Spring is still in full bloom and that Europe is about to collapse financially yesterday, I take note of the print advertising inside. It's mostly for investment banks, information networks, top MBA programs; you know, things I can't buy. Each issue usually holds 2-3 print ads for airlines.

Some of them appear to take a step or two back as far as gender stereotypes go, but then I remember: this is an international magazine, with international readers, with very different cultural backgrounds. It's then that I realized that I never see advertisements for American airlines (general, not the brand itself) in The Economist. The U.S. runs a massive share of international flights in the world; it's almost bizarre that American flight carriers don't control a larger portion of business/upper class travel abroad. U.S. airlines don't even carry the stature that the international carriers do. Qatar Ailines is The world's 5-star carrier. Cathay Pacific is all about loving to serve the flyer. Emirates is about exploring the world. What do American giants stand for? This is especially peculiar considering so many of international business deals involve U.S. companies.

But then again, it does make sense. When the airline industry was deregulated in 1978 ticket prices began their long hike downhill. Dozens of new players entered the field. Operating costs initially rose now that the federal government wasn't running logistics.But then prices started falling... and never stopped until they couldn't go lower without cutting amenities. So airlines cut corners, but for the sake of profits, kept costs for customers the same. That's how we ended up with bag fees, and a la carte refreshments, and "premium" coach seats.

Every airline did the same thing, but it turned against them in the last decade. Brand parity among the American giants allowed smaller carriers to swoop in and grab the low cost/low margin/quality service position, just as the critical decision factor switched from price to quality of service. Airlines like JetBlue and Southwest Airlines are humongous yet, but they will grow to be at this rate because they made air travel a unique and enjoyable experience.

Delta, a partner to AirFrance/VTM, has caught on and is trying to brand themselves as the big guy striving to make flying suck less. But the 2011 American Customer Satisfaction Index points that Delta is the most hated airline brand in the U.S. I appreciate Delta's effort to rebrand themselves, but apparently the execution is lacking support. Nothing kills a bad product faster than great advertising (sorry W+K). Delta has a lot of growing up to do if they want to change their position at all.