Bigger is better only if it’s different
Will making an airline bigger make it better? That’s the obvious question being asked by any number of people regarding the news about the US Airways bid for Delta. The answer is yes, if – and if.
The first “if” is the business “if.” If the merger between US Air and Delta creates operational efficiencies of scale then there’s a chance bigger could be better, for both the combined company and the passengers. In this case, bigger could solve some big business issues. (And, by the way, calling the new company Delta, given the fact that it’s a stronger name from a global perspective was a good first move.)
Okay, let’s say this is done successfully. The second “if” is the branding “if.”
The real challenge for those in favor of a merger between US Air and Delta is how to make the experience of flying this big, new airline relevantly different – relevant differentiation being the key to all successful brands. I’m not talking about flight attendant uniforms or in-flight entertainment. I’m referring to things that bring the new operating efficiencies to life for passengers. Things that have a tangibly positive impact on the entire flying experience, from the reservation process, to the routing choices, to the baggage retrieval. This is what really distinguishes one airline from another. In other words, if the tickets are cheaper and I’m treated like I bought the cheap seats, forget it.
If bigger fixes the business model, that’s good. If the new brand can’t figure out how to deliver bigger as better, that’s bad. While bigger may address the benefits of scale, if there’s nothing different about how the new airline executes bigger from a branding standpoint, the whole thing could be a big dud.
December 15th, 2006 at 12:07 pm
Allen, I’m not sure about the bumper sticker concept this time around. While it’s certainly true that rational ignorance is in play here, expectations are what drive brand selections not promises. In my humble opinion, the next leader will be chosen based primarily on character (integrity, passion, empathy, etc.) and not on a sound bite. Expectations are based on experience/memory more than on assurances.