Food provenance, authenticity and airline marketing: providing an in-flight gastronomical experience

Alaska Airlines Boeing 737 with wild salmon livery
(photo by Frank Kovalchek, via Wikipedia)

A few days ago I came across a couple an interesting article on Airline Trends (a great blog that I recommend to anyone interested in airline marketing, by the way!) that focused on how food can be a great way for airlines to differentiate their offerings and improve the traveler experience.

This is a topic that deeply interests me and I think airline's initiatives in this direction are very consistent with the ongoing trend towards introducing more doses of authenticity in the consumer experience, something you can see for example if visiting any UK supermarket, where products come with more and more provenance references in their packaging...so I thought about a sharing an article that friend site GourmetOrigins.com has just published about authenticity and provenance in in-flight meals.

Food origins up in the air (via GourmetOrigins.com)

I hope you enjoy the post and please do not hesitate to contact me if you know of any more initiatives of airlines using on-board food provenance and authenticity for marketing purposes!

GourmetOrigins.com is a site to discover and explore the origins and stories of the best European foods, find out where they are made, how and by whom!

George Soros invests in Flybe as the British regional airline readies its expansion plans

Pointing upwards! (Picture: Wikipedia)

What is the fastest way to become a millionaire? Start as a billionaire and invest in an airline....! but it looks like billionaire George Soros would rather disagree!

Well, true, a £7M. investment in Flybe is not even pocket money for the famous tycoon (it will buy him around 3.4% of the company), however I find it significant that such an experienced and powerful investor, that managed to sink the pound sterling in 1992, is backing Flybe at this time, when ambitious expansion plans are under way at the British regional airline. Flybe has just floated in the stockmarket and plans to use the proceeds of the flotation to double its fleet and possibly open new bases in Europe or acquire another regional airline, another sign of confidence in the future, is that Flybe's current owners are not planning to cash their money in, at least not in the short term.

There is no lack of examples to support the old joke about the dubious profitability of airline investment (even Warren Buffett got caught on this one!), however, it is remarkable how Flybe has been able to build its niche business in a market strongly dominated by behemoths like Ryanair, Easyjet and BA, or I should say, precisely by being able to exploit the markets gaps these airlines were leaving: as opposed to BA and its Heathrow focus, Flybe has an extensive regional network, as opposed to Ryanair and Easyjet, Flybe caters mainly to the business traveller...will it be able to replicate its business model in the continent? in any case, it looks like we are going to get used to hearing about Flybe more often, as the British regional champion is onto something big!

Estonian Air experiences the power of Groupon-style promotions

When we speak about social media in the air travel sector and the new channels airlines are opening to engage with their clients we usually think about Twitter, Facebook...but what's been really hot in the internet scene this last year?...coupons! think Groupon and its legion of copycats. Basically, these sites offer a product or service every day at a very discounted rate, the catch is that this deal-of-the-day only applies if a certain number of people sign up for the offering. The concept has proven to be so wildly successful, that 2-year-old Groupon is rumored to have had a $6B acquisition offer from Google!

To see what happens when you apply the coupon concept to air travel we have to go to one of Europe's smallest and most peripheral markets for air travel: Estonia. And it was a resounding success!

Estonian Air, a SAS subsidiary and flag-carrier of the tiny, but internet-savvy, Baltic nation had to stop selling discounted tickets through Cherry.ee when sales started going through the roof, they were planning to sell 2,500 tickets and by the time the promotion stopped more than 6,500 had already been sold. It might not sound like a huge number to some, but if you take into account that Estonian Air has a small fleet made of just 2 Boeing 737-300, 3 Boeing 737-500 and 2 Saab-340 turboprops, you can see how this promotion successfully sold a considerable share of its available capacity...I am sure many other airlines throughout Europe and the rest of the World are looking attentively to the North-Eastern shores of the Baltic!

By invitation: Roman from AirObserver on Airport privatization in Spain. What impact for Ryanair?

From today Roman from AirObserver is going to be guestblogging in this blog.
Roman runs AirObserver, a blog which covers airline news and especially European low cost market. He cooperate in Airpanorama project, a barometer which aims to offer the easiest way to compare most European low cost airline traffic figures.
He is also the author of an e-note about Ryanair business model.

Here is his first post in this space. Enjoy!

Airport privatization in Spain: What impact for Ryanair?


Picture: Barcelona airport new terminal

Spain's Prime Minister José Luis Rodríguez Zapatero has recently declared that his government plans to privatize 49% of AENA, the public authority in charge of Spanish airports. This privatization will start with two major airports in Spain: El Prat and Bajajas (other airports will come). Thus, probably in the hope to reduce public expenditure and to a certain extent, to improve airports management. Indeed, Zapatero’s government, who leads a struggling Spanish economy, hopes that the privatization would generate €9 billion.

A private management could impact Ryanair’s revenues:

In Spain, as all over Europe, Ryanair is massively subsidised. What I noticed in France is that each airport which gives money to Ryanair is actually managed by regional public bodies. Most of regional airports that are giving money to Ryanair are loss-making airports. Indeed, Ryanair always deals in the same way no matter the country: it brings in passengers, in return of important subsidies and free or lower airport fees. Consequently, small airport have more costs than revenues. Moreover, most of the time, the airport also has to hire, train, and pay all the required ground personnel. If you take this into account, you’ll understand why it might not be that profitable. However, when they realise that they are no longer able to deal with these high costs, it is too late, as the Irish airline doesn’t allow for contract changes.

My point here is that this kind of deal is only possible thanks to public support. Without public support, the airport won’t be able to survive, and would not agree to such deal. A private airport will only focus on revenues. In the light of this, we can conclude that, if the Spanish government decides to extend the privatisation movement to other small regional airports, the type of deals that Ryanair was able to conclude until now won’t be possible any more. Newly privatized airports will look at revenues first and not hypothetical future tourism revenues.

Airlines such as Vueling and Spanair have already given their support to this privatization, however full details have not been disclosed yet. Cataluña government for instance is waiting more detailed precisions from the Spanish government and Zapatero's still has to find potential investors.

Thanks everyone!

When I started writing my previous post about social media use during the Spanish airport crisis, the events were still unfolding and I could not imagine this would be, by a large margin, the most popular story in this blog so far.

Every new crisis or unexpected event becomes a test-ground for social media and further proof of the growing importance of these new communication channels in crisis management. I imagine this is one of the reasons why so many people from around the World visited this blog and took an interest on how social media was put to use during this crisis of first magnitude. I was particularly delighted that one of the World's top airline marketing blogs, Simpliflying, re-published my article in its entirety, thus giving me the chance to make my analysis available to its well-qualified and global public.

Here is the link, and do not forget to visit the rest of the Simpliflying blog. It's totally worth it!

An analysis of Social Media during the recent Spanish air traffic controller's strike

At the time of writing these lines the effects of the Spanish air controllers unannounced and almost total strike are still being felt throughout the whole South-Western European airspace. This industrial action has forced the closure of the entire Spanish airspace and gravely affected that of the surrounding countries (Portugal, Morocco), the chaos at airports has been total, more so when the controllers' walk-away has coincided with the start of a five day holiday in Spain. The Spanish government has had to recur to extreme measures such as declaring the "state of alert" and putting the ATCs under military control.

It is not my intention here to delve into the causes of the crisis or on the chronology of the events , but to look at how the different actors of the crisis have been using social media to get their message through.

The role of social media during crisis has become more and more important and this crisis. I find that the current situation has many points in common with the recent volcanic-ash episode that forced the closure of practically all European airspace. As I explained in a previous post, the recent Social Media for Airlines conference, dissected the response of airlines and organisations to sudden short-term disruption of air traffic. In that case, the crisis was a catalyst that pushed organisations to embrace social media. And this case is no different...

In fact when the crisis started all the social media artillery seemed to be on the side of the air traffic controllers, that had their own blog and at least two Facebook fan pages presenting their point of view (this one seems to be the main one, but has much less activity than this other page that is focused on the current conflict...This put them automatically on the spotlight, with thousands of angry people directing their anger at these platforms. The Spanish ATC Twitter account was replying to comments and actively tweeting until Saturday morning when it seems that it stopped tweeting (the deluge of mostly negative comments was possibly too much for whomever was managing this account)

The government side did not have this sort of social media channels in place when the crisis started to unfold. Spain's airport and air traffic management organisation (Aena) had an institutional website that was in no way suited for this task, providing just some informative notes and a contact telephone. There was no Twitter account to speak of until Saturday mid-morning (more than twelve hours after the strike had started), when the official Aena Twitter account was opened. The first time I checked it out it had only two followers and they had not even had the time to upload an avatar picture for their Twitter profile. To their credit however, they got up to speed fairly quickly, I checked it again 15 minutes later and it had already over 1000 followers, by early afternoon they had reached 3000 and it was tweeting a constant flow of information on Spain's airport network situation. Besides English and Spanish it had also streams in the other official languages of Spain: Catalan, Basque and Galician. We hope that, as in the volcano crisis, this level of engagement with the public will remain going future.

It is unusual for events taking place in a mid-sized non-English speaking country with little Twitter penetration to make it to Twitter's global trending topics, but at some times today the Spanish airport chaos made it to the top of the list, for example: #controladores, #barajas,

Other hashtags you can monitor to follow the events are:
#aena #huelga #controladores #prat #estadodealarma #DGAC #Spanishstrike

most of the tweets related to these hashtags are in Spanish, but quite a few are in English too.

And obviously Eurocontrol, was also informing via Twitter, by the way, it must have been a complicated day for them since there were not only issues in Spain but also closures and disruption due to snow at Schiphol (AMS), Paris-Orly (ORY) and UK airports such as London-Gatwick (LGW).

Other unexpected side actors of this crisis have been Hotel Auditorium, a huge hotel next to Barajas airport with its own twitter account as it is in this hotel that air traffic controllers were holding a meeting on Friday night while the crisis was at its peak. They required police protection after the ATCs were discovered by a number of distressed passengers that had been hosted at the hotel after their flights got cancelled (as a side note, I also had the chance to stay at Hotel Auditorium earlier this year after my flight was cancelled due to an air traffic controller's strike in France).

I have also seen the potential of Twitter as a tool to arrange alternative travel plans, for example, I have spotted several people on Twitter looking for car-sharing arrangements to travel by road to their destinations as well as some online car-sharing companies, such as Comuto and Amovens, promoting their services.

And other online services that thrive with public attention in days like this are the air traffic live monitoring sites, such as FlightRadar24 or Radarvirtuel, that I already used, with spectacular results, during the volcanic-ash crisis.


Snapshot of Radarvirtuel around 7pm CET, air traffic returns slowly to Spanish skies, spot the empty region in Central Spain and around Madrid airport (MAD).

Ryanair stops taking reservations from end of March for its Girona (Barcelona) routes

Passengers looking to book a flight out of Girona-Barcelona (GRO) with Ryanair for travel dates beyond 30th March are coming across this:



As Catalan daily Avui has pointed out, there are two possible reason why this is happening while bookings from the other Barcelona-area airports where Ryanair operates, Reus (REU) and Barcelona-El Prat (BCN), are working fine
Either it has something to do with ongoing negotiations to keep Ryanair at GRO or, the official version, the Irish company is still defining its summer flight schedule.

On one hand and as my article of a few days ago at AirObserver pointed out, Ryanair's recent arrival at BCN strengthens its negotiating power bis a bis the Catalan authorities. The current agreement between Ryanair and the local authorities expires at the end of the year 2011 and it seems that Ryanair has been asking for 12 million euros to renew it.

This happens at a time when these same authorities seem less keen on more money handouts and risk getting caught in a "subsidies war" with other local airlines (see AirObserver's post on this too). Blocking flight reservations could be a way to send a strong signal and an important power gesture...

On the other hand, Ryanair has just opened routes to destinations from GRO, such as Larnaca (Cyprus).

So possibly there was a combination of the two factors at play, negotiation strategy and route planning. In any case, while I finish to write this post I read that sources of the Catalan government have confirmed that an agreement has been reached to keep Ryanair operating at Girona airport (although has not yet been ratified due to last week's parliamentary election in Catalonia). I am waiting for more details...