Sunday 3 July 2011

Celebration for Boeing, Crisis for Tiger

" 787 is about 15 minutes from Tokyo. @boeingairplanes will tweet as soon as practical after landing."

"Hello Tokyo, from the crew of 787 ZA002. We just landed at Haneda Airport, home of ANA, our launch customer"

These two simple tweets from Boeing (@boeingairplanes) are part of a steady campaign building excitement for the eventual arrival of its latest aircraft - the Dreamliner.   Boeing is a B2B company.  None of us pop into the local store and buy a commercial airliner.  But airlines want to buy aircraft the public want to fly in.   You still feel something when the Airbus A380 lands at Heathrow.  Partly amazement that something so big can land so gently.   The 787 and A380 were the star turns at the last  Farnborough Air Show.

Boeing's use of social media on the 787 is exactly right. It's almost like listening in to the ATC radio.

Both the 787 and the A380 are delivering something else airlines want - fuel efficiency, quieter planes and more environmentally friendly operation.

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Whilst Boeing celebrates, Tiger Airways Australia, the low cost airline, has a crisis on its hands.




As the Sydney Morning Herald reports, the Australian Civil Aviation Authority has suspended Tiger's rights to fly over and land and take off in Australia for 5 days amidst safety concerns.  The regulator says Tiger's aircraft have twice flown below the permitted minimum height in the last month.  It follows the issuing of a "show notice" to the airline in March over other concerns.   It had to be said that (reports the Singapore Times) the regulators in Singapore say they have had no such concerns with the airline's sister company based there.

However, the core element of every reputation is trust.   And in the case of an airline, the fundamental driver when you buy a ticket is simple: you believe that when you walk down an airbridge to depart, you will walk up another one at your destination.  If you don't believe that, you don't think about buying the ticket.   It's a big ask of customers.  Airlines ask you to trust them with your life.

This is a crisis for Tiger.

How have Tiger responded?    So far, it looks like a textbook response.

They got out there quickly.  "Safety has and will underpin our operations at all times" is the key message. They put their full statement on the front page of their Australian website.  The CEO, Tony Davis, goes on ABC TV News Australia - on the front foot.  He rejects the charges, reiterates that safety comes first in the company and says they will work with the regulator.   Extra call centre staff are brought in to help customers.   Tiger apologies to them for the disruption.  No quibble full refunds or credits.   Virgin brought on board to help customers affected by flight cancellations.  Media are told when the next statement will be issued.

However, there is no doubt this is a critical moment for the company.   First they must persuade the Australian regulators.  But after that they will need to rebuild their reputation with passengers.  After a crisis, that must be seen as a long term and continuous task.   But Tiger have started well.



(Posted from Singapore)




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