Airline profits - Volume I - Issue 3 - June 2015

Volume I—Issue 3

A Magazine for Aviation Leaders & Influencers

www.airlineprofits.com

FEATURED

Are you attracting the right talent to improve your performance?

More articles inside...

Airline Profits Sustainability Index: Where Do You Stand on the Scale?

Release date: June 2015

IATA’s 71st AGM in Miami How to Substantially Boost Your & Paris Air Show 2015 Goodwill Like Southwest Airlines?

Volume I—Issue 3

June 2015

Airline Profits

Contents 6

Editorial: IATA’s 71st AGM: Was the Apple Analogy From Miami Beach Refreshing Enough?

12

Profile: Air lin e Pr ofits S usta in a bility In dex: Where Do You Stand on the Scale?

18

Perspective: An cilla r y Reven ue s:

Is Charging Extra Fees Bad for Business?

24

Performance: Ho w to Su bsta n tia lly B oost Y o ur Goodwill Like Southwest Airlines?

30

Platform: Pa r is Air S ho w 2015:

Will the Capacity Discipline Guideline Prevail?

34

Paradigm: Ar e Y o u Attr a ctin g the Right Ta len t To Improve Your Performance?

www.airlineprofits.com

3

HEAD OF PROGRAMS:

Kofi Sonokpon

All rights reserved. No part of this publication may be reproduced, duplicated, stored in any retrieval system or transmitted in any form by any means without prior written permission of the Publishers.

kofi.sonokpon@airlineprofits.com

Airline Profits is r elea sed bi-monthly in February, April, June, August, October and December.

PUBLISHED BY: Airline Profits Publications

CP 53506 CSP Norgate Saint-Laurent, QC, Canada

H4L 5J9 info@airlineprofits.com

Airline Profits is a v a ila ble in m u ltip le fo r m a ts: o nline, m o bile, digital and print. The online and mobile versions are free to all aviation and non-aviation subscribers.

Digital and print formats are chargeable based on an annual subscription.

For more information about the various subscription packages offered, visit www.airlineprofits.com Airline Profits is a tr a d em a r k of M a ck so n Av ia tio n.

©2015 Airline Profits ISSN 2368-7800 (Print) ISSN 2368-7819 (Online)

www.airlineprofits.com SPECIAL CREDITS:

Lorne Bromley ● Nathalie Nyangono ● Naomi & Johanna Sonokpon

Airline Profits

June 2015

Volume I—Issue 3

Editorial IATA’s 71st AGM: Was the Apple Analogy from Miami Beach Refreshing Enough?

Kofi Sonokpon editor@airlineprofits.com

IATA’s Annual General Meeting of this year, the 71 st of its kind was held in Miami, Florida on June 7-9, just a few miles away from Havana, Cuba where the association was founded in 1945. This event was of greater importance, since it introduced the trade association into its eighth decade of existence.

IATA now counts close to 260 members, who collectively carry over 80% of the air traffic worldwide. The achievements credited to the organization over the last seven decades are too numerous to be listed.

The impact on the airline industry and air travel has been significant. And one could hardly imag-

ine the state of the industry without IATA’s leadership and advocacy. IATA has indeed made it

possible to fly better together.

However, there is still a lot to be

Collectively, airlines are now expected to reach an all-time record of US$ 29.3 billion in profits, instead of the 25 billion previously announced in December 2014.

done, especially when it comes to sustainability, safety and profitability. As a matter of fact, these topics formed an integral part of the agenda for this annual meeting.

For instance, during the 3-day event, IATA announced a much better outlook for 2015. The very strong first quarter performance

6

posted mainly by US airlines caused the association to upgrade its airline profitability projections. Collectively, airlines are now expected to reach an all-time record of US$ 29.3 billion in profits, instead of the 25 billion previously announced in December 2014.

www.airlineprofits.com

Tony Tyler, Director General and CEO of IATA downplayed the impact of cheaper fuel prices and attributed this positive performance mainly to operational efficiency.

It was indeed important to put things into perspective when

Photo Credit: International Air Transport Association (IATA)

identifying the true profitability drivers.

In fact, since December 2014, many voices outside of the industry, namely prominent politicians called for airfare adjustments on account of lower fuel prices. This is not a surprise, because the general perception of outsiders is that airlines make a lot of money. And as you of course know, nothing

A significant attempt Mr. Tyler made to drive the point home was to compare the airline industry’s performance to that of Apple.

As a matter of fact, Apple made a total of US$31.6 billion in net profits in the first two quarters of 2015 alone.

could be further from the truth. Even with the very optimistic outlook from the AGM, airlines have collectively lost more money than they have ever made. Another significant attempt Mr. Tyler made to drive the point home was to compare the airline industry’s performance to that of Apple. As a matter of fact, Apple, as a single company, made a total of US$31.6 billion in net profits in the first two quarters of 2015 alone.

Airline Profits

June 2015

Volume I—Issue 3

Airline Profits

June 2015

Volume I—Issue 3

Editorial That is much more profits earned

As far as Apple is concerned,

When it comes to the airline in-

in half a year than what some 260

there are some distinctive factors

dustry, however, the focus on

airlines are anticipated to make

worth highlighting:

market share has significantly

collectively in one full year of

reduced the charm and prestige

operation. Furthermore, that is

that were naturally connected to

almost the double of what air-

1. You either like Apple products

the air travel experience. Flying is

lines made in 2014.

or you don’t. 2. Apple customers

now generally perceived as a

feel a strong connection to their

mere commodity, which the ma-

brand, which commands a high

jority of customers don’t want to

sense of loyalty. 3. Apple does

spend too much on. The general

As rightfully pointed out, no one is asking Apple to reduce their prices.

not compete on price. Their products are positioned in such a

On one hand, the analogy with

Apple is pertinent in addressing concerns from outsiders or one would say their unreasonable

way that the perceived value jus-

On the other hand, it is also very pertinent and refreshing for in-

spiring the airline industry to learn from the success of Apple.

This calls for a group reflection

on why airlines who play such a vital role in the world economy should consistently struggle fi-

nancially and get much less than the fair share of their contribution.

12

that airlines are charging too much for less and less value.

tifies them in charging a high price, which in turn paves the way for a higher profit margin.

Hence, airlines have lost the ex-

citement that came naturally with

criticism and unrealistic expectations.

feeling, especially in the USA is

the possibility of travelling by air, Putting it plainly, fans of Apple

whereas Apple has managed to

simply do not care how cheaper

artificially build great excitement

competitors

into their brand.

are

selling

their

products for. They do not perceive an Apple product as a commodity. And that did not happen by chance. Through the effective

use of clever brand evangelism, Apple has succeeded in building a mythic and mystic like atmos-

phere around their brand, which commands worldwide admiration or adoration to some extent.

www.airlineprofits.com

It is our hope that airline leaders left Miami Beach with some refreshing views on how they can sustain the recent wave of profitability and continue to improve on and maintain the upward momentum.

Business

“Business is not just doing deals; business is having great products, doing great engineering, and providing tremendous

service to customers. Finally, business is a cobweb of human relationships.”

— H. Ross Perot

Airline Profits

June 2015

Volume I—Issue 3

“ The aim of marketing is to know and understand the customer so

well that the product or service fits him and sells itself. ― Peter Drucker

Airline Profits

www.airlineprofits.com

@AirlineProfits

For more information, check out our campaign on Indiegogo: http://igg.me/at/airlineprofits

Airline Profits

June 2015

Volume I—Issue 3

Profile Airline Profits Sustainability Index: Where Do You Stand on the Scale?

Provided you are a regular reader of Airline Profits, you will notice in this article a similarity of thought with the previous two editions of the magazine. Airline Profits is the first aviation magazine devoted to promoting a more profitable airline industry.

As such, we are striving to raise a red flag concerning the state of airline business and calling for a paradigm shift in the way it has been conducted over the last century of its existence.

In this edition, we will explore the framework leading to Airline Profits

Sustainability

Index

(APSI) a unique index, which can serve as a basis for airline business improvement process, the

dimensions that will be considered are known, but our approach may not be.

The Airline Profits Sustainability

Index (APSI) is an integrated metric that can be used both for self-assessment and for a bench-

marking.

12

The dimensions covered by the Airline Profits Sustainability Index are as follows: People, Performance and Agility.

Each of these dimensions will be dissected into two or more sub-dimensions.

On that basis, we will be ranking airlines and we will be revealing a Top 10 list in a future edition of Airline Profits.

The dimensions covered by the Airline Profits Sustainability Index are as follows: People, Performance and Agility.

www.airlineprofits.com

Each of these dimensions will be dissected into two or more subdimensions.

For instance, the People dimension will comprise Management, Employees and Customers.

Photo Credit: Envato Photodune

The Performance dimension will take into financial performance, reliability and safety. Finally, the Agility dimension, which focuses on how current an airline is, will include areas like communications and online presence.

The People Index To paraphrase Zig Ziglar, “You don’t build a business. You build people and they build your business”.

Airline Profits

And as shared at the beginning of the book and webinar on Vision Load Factor, you can buy material and equipment; you can raise capital to run your business.

But the right amount of skills, experience, the right level of engagement and especially the winning attitude necessary to sustain your profitability is not readily available to buy. Therefore, the people dimension is paramount to building a sustainable and profitable organization.

June 2015

The Performance Index According to Eli Goldratt, the goal of a business is to make money. Over a century of existence, airlines have generally defied that principle year in and year out until very recently. The consideration of financial performance will be supplemented with that of reliability and safety, so as to capture the important aspect of operational performance.

Volume I—Issue 3

Airline Profits

June 2015

Volume I—Issue 3

Profile The Agility Index

Using Napoleon Hill’s terms nothing is permanent except change. Our ability to quickly adapt to changing circumstances or environments, either as individuals or organizations, may well be a defining factor for success or failure.

Given how rapidly technology is changing the way we do business, agility is increasingly becoming a determining order of the day. Status quo can easily equate to mediocrity and hamper an airline’s capacity to generate more revenues and become sustainably profit-able.

The Balancing Act In integrating the three dimensions, namely People, Performance and Agility into the Airline Profits Sustainability Index, it is important to note that they don’t carry the same weight.

However, a closer observation

would reveal that performance in itself depends largely on people and how they decide to behave

over a given period of time. As researchers have proven, it is possible for a good organization

to become great or vice-versa. It all pertains to change in people’s behaviour. Therefore, the people

dimension

does

carry

If you have any questions related to the APSI, feel free to contact us at: www.airlineprofits.com/ contact-us

more

weight.

It is generally accepted that past performance is the best predictor of future performance. However, a closer observation would reveal that performance in itself depends largely on people’s behaviour.

Likewise, researchers have also

proven that technology has had little impact on the transition

For instance, it is generally ac-

from a good organization to a

cepted that past performance is

great one. So although an im-

the best predictor of future per-

portant dimension, Agility will

formance.

carry less weight.

12

In summary, we hope you have enjoyed this introductory article on the Airline Profits Sustainability Index (APSI) and do look forward to hearing your comments and feedback.

www.airlineprofits.com

In the meantime, you can join a free webinar on the same topic at: www.airlineprofits.com/ webinars.

Customers

“Always think of your customers as suppliers first. Work

closely with them, so they can supply you with the information you need to supply them with the right products and services.”

— Susan Marthaller

Airline Profits

June 2015

Volume I—Issue 3

“ Service is the rent we pay for the

privilege of living on this earth. ― Shirley Chisholm

Airline Profits

www.airlineprofits.com

@AirlineProfits

Data analytics in real time from information streaming through sensors connected to aircraft mechanical and electronic components is producing opportunities for new products and services.

For industrial manufacturers of physical assets, new revenue streams from the Internet of Things is revolutionizing the industry.

Our research shows that airlines can become more profitable and cut costs by integrating digital transformation and data analytics into all their business functions.

Airlines that traditionally operate on razor thin profit margins are extracting new revenue models from data analytics integration.

For more information and access to comprehensive reports on data integration in the airline and MRO industries, simply visit our website.

www.thedataminingcompany.com

Airline Profits

June 2015

Volume I—Issue 3

Perspective Ancillary Revenues: Is Charging Extra Fees Bad for Business?

Amidst the continuous reporting of projected record profits, coupled with the acrimonious dispute over open skies agreements with Gulf carriers, the recent reports by the US Department of Transport (DOT) about ancillary revenues seem to have increased the concern American air travellers have.

For the leading US air carriers, namely American Airlines, Delta Air Lines and United Airlines, 2014 was a very lucrative year. Overall US$ 3 billion in reservation fees and 3.5 billion in bag fees were collected.

According to US airline analysts, bag fees are tax-free. One could assume that the total of 3.5 billion these airlines have collected went straight to their bottom line.

All of a sudden, it appears as if charging fees for bags and reservations is more profitable than airfares. And there will be no surprises to see other carriers do the same thing in the very near future. Even Southwest Airlines, appreciated and respected for not charging reservation nor bag fees, as it was reported may yield to the temptation beyond 2016.

Now, while charging for bags and reservations is undoubtedly very lucrative and seem to make

18

Now, while charging for bags and reservations is undoubtedly very lucrative for airlines, a key question remains to be considered.

How do the passengers feel about that? airlines feel good about this apparent golden stream of revenue, a key question remains to be considered. How do the passengers feel about that?

From the airlines’ perspective, customers have a preference for unbundled travel packages, so

www.airlineprofits.com

they reportedly want to pick and choose, à la carte, so as to pay for extra services over and above the base fare.

However from travellers and consumer advocates’ viewpoint, this is an outrageous practice.

Photo Credit: Envato Photodune

Customers feel that they are be-

It appears as if the US airline in-

And while it is true that most of

ing charged more and more for

dustry as a whole has lost their

their customers would have no

less and less service. Surveys re-

genuine sense of purpose, which

choice but to travel, nothing

leased earlier this year have re-

is to serve the customer. Meta-

could prevent them from consid-

vealed a substantial increase in

phorically speaking, this equates

ering other travel arrangements

flight delays, lost or damage lug-

to cheerfully biting the hand that

or means of transportation.

gage and overall customer com-

feeds them or cutting the very

plaints. Comments on social me-

branch they are sitting on. The

dia even denounce how impa-

fall in such a case may be cata-

tient and arrogant some airline

strophic depending on how high

customer service and gate agents

they were.

Many have reported this as one of the reasons why some American travellers prefer to fly foreign airlines such as Emirates, Etihad and Qatar.

are toward passengers.

Airline Profits

June 2015

Volume I—Issue 3

Photo Credit: Envato Photodune

Others even wish these foreign airlines were granted the free-

dom to operate domestic flights within the USA, (what experts call pure or standalone cabotage

or the 9th freedom of the air).

In summary, this may seem an

Customers in general are willing to pay any price when they perceive that they are getting more value than what they are being charged.

exaggeration of fact, but extra

charges do make customers unhappy. And making customers

There is much to say on this topic, but let’s conclude here by highlight-

unhappy is a very bad business

ing the fact that customers in general are willing to pay any price

to be in. Sooner or later they will

when they perceive that they are getting more value than what they

make you pay for that and with

are being charged. And this can explain why some airlines, which are

compound interest.

truly committed to providing excellent customer service refrain from nickeling and diming, and simply offer an all-inclusive airfare.

22

www.airlineprofits.com

Goodwill

“Good will is the one and only asset that competition cannot

undersell or destroy. ” — Marshall Field

Airline Profits

June 2015

Volume I—Issue 3

“ The best way to find yourself is to lose yourself in the service of others.

―Mahatma Gandhi

Airline Profits

www.airlineprofits.com

@AirlineProfits

For more information visit www.airlineprofits.com/webinars

Airline Profits

June 2015

Volume I—Issue 3

Performance How to Substantially Boost Your Goodwill Like Southwest Airlines?

In this third edition of Airline Profits, we are back with Southwest Airlines to relate how they made a difference in a customer’s life through a collective, well-coordinated team effort by going the extra mile.

As you very well know, one of the building blocks of a sustained and profitable business is a strong goodwill.

Although this is difficult to quantify precisely, it does carry a lot of weight in determining how successful a business, especially an established one, can continue to be.

The reason for that is due to the fact that the notion of goodwill is strictly related to the credibility and reputation of an organization. As the saying goes, people will want to do business with you because they know you, like you and trust you. And that can easily be considered conversely by saying that people won’t want to do business with you, because they may know you but they don’t like you and don’t trust you.

And in case they don’t know you at all, they will do business with you for the first time, because they need it and they have no other alternatives but you.

It is simply impossible to anticipate every scenarios.

Yet a company’s reputation or credibility can be significantly boosted or trampled on, when one of those unforeseen cases do occur.

This goes then without saying that every interaction with customers count.

Yet a company’s reputation or

As a matter of fact, despite all the

one of those unforeseen cases do

customer service policies an air-

occur.

line may have in place, it is simp-

That is when outsiders do get a

ly impossible to anticipate every

glimpse of what your company

scenarios.

24

www.airlineprofits.com

credibility can be significantly boosted or trampled on, when

April 8 2015. Southwest Airlines launches new nonstop flight to Dallas Love Field. Photo Credit: Southwest Airlines

really stands for, because your

The airplane had already left the

organizational culture is publicly

gate and was preparing for take-

tested. And like it or not, social

off. In the meantime, her hus-

media will amplify and even

band was trying desperately to

more publicize the occurrence.

reach her, but her mobile phone

As you may already know, Southwest Airlines was recently put to the test. A lady, Peggy Uhle, boarded a Southwest flight from Chicago, Illinois on route to Columbus, Ohio. She did not know that her son fell into a coma in Denver, Colorado.

Airline Profits

was switched off.

The husband finally called Southwest Airlines directly for help.

The airline’s team was successful in relating the message in such an effective manner that the flight crew was alerted right on time.

June 2015

The captain then decided to abort the take-off at the last minute and returned the aircraft to the gate, so that the passenger could get off. As if that was not enough, they had already booked her on the next flight bound for Denver free of charge. That flight was leaving within the next two hours, so she was offered a private waiting area. Then she was allowed to board first and was given a lunch box for when she will arrive in Denver.

Volume I—Issue 3

Airline Profits

June 2015

Volume I—Issue 3

Performance Another significant fact was that

her luggage was rerouted and delivered to her at the place she was staying in Denver.

Commenting on the event later on as reported by the travel blog BoardingArea.com,

Mrs.

Uhle

said that the service Southwest provided her on that occasion was second to none.

Now before you minimize such

Instead, these Southwest employees not only went above and beyond their normal job descriptions, but they did it naturally and with such a charming class.

In summary, given the circumstances, there is no doubt that Southwest Airlines not only did the right thing, but they also did it right.

At a time when much is being

There is also no doubt that they have impacted their customer and her husband positively by facilitating a family reunion at a time when they needed it the most.

reported about how worse airline

customer service is getting in the USA, such events happen as a fresh and strong reminder to all

airline leaders that customers don’t really care how large your

an experience by saying some-

thing like: that is what any sensible people would do, you would do well to keep in mind that this

not a commonplace occurrence.

Every single employee of Southwest who was involved in this

case, could well have evoked a company policy to justify why they could not help. Any cynical

excuses like “Sorry, it’s too late,

Such events happen as a fresh and strong reminder to all airline leaders that customers don’t really care how large your fleet or how many destinations you serve until they know how much you care about them.

the airplane has already left the gate” or “All my sympathy, but

fleet or how many destinations

there is really nothing we can do

you serve until they know how

to help” could well have been

much you care about them.

used in order to opt for inaction.

36

www.airlineprofits.com

As for the tremendous goodwill and free publicity, Southwest will have received following this single event, they deserved it for a job well done.

Profit

“I don't want to do business with those who don't make a

profit, because they can't give the best service.”

— Lee Bristol

Airline Profits

June 2015

Volume I—Issue 3

“ Rule number one: The customer is always right. Rule number two:

If the customer is wrong, see rule number one. ― Steve Leonard

Airline Profits

www.airlineprofits.com

@AirlineProfits

Deadline to place your ad for August 2015: July 15, 2015 For more information, download our multimedia pack at www.airlineprofits.com/advertise

Airline Profits

June 2015

Volume I—Issue 3

Platform Paris Air Show 2015: Will the Capacity Discipline Guideline Prevail?

As we all know Paris Air Show is said to be the largest of its kind in the world. This year the event is held from June 15th to the 21st and marks its 51st occurrence.

For visitors it is a unique opportunity to discover new and improved existing aircraft types. For manufacturers, Le Bourget is a perfect venue to showcase their product line, but more importantly to announce new sales. The increasing media attention for the event makes it an ideal place for generating big publicity.

As in the past, Airbus, Boeing, Bombardier and Embraer will try to outperform each other, while

aviation and business media outlets are broadcasting who sold what, how many and for how

much to whom. Thus, making a good Paris Air Show is perceived as a mark of market domination.

Over the years, Le Bourget has established itself as a benchmark for success as far as the introduction of new aircraft models or types are concerned. Announcing more aircraft orders than the competition is not only a strong signal of good performance, but it is also perceived as a crowning achievement.

30

Announcing more aircraft orders than the competition is not only a strong signal of performance, but it is also perceived as a crowning achievement.

As a matter of fact, the Bombardier CSeries making its first Paris Air Show this year had already been the target of critics who were questioning whether the show would determine the success of the aircraft program.

Others, were eagerly waiting to see whether Airbus will be able

www.airlineprofits.com

to sell more A380s, especially knowing that Malaysia Airlines due to a series of misfortunes and financial difficulties will no longer be operating their A380 fleet.

Now, whether that reference or benchmark proves relevant for these aircraft models or not, time will tell in either case.

Bombardier CSeries—CS300 with SWISS livery. Photo Credit: Bombardier

However, one thing is certain: there is a frenzy at the Paris Air Show, which causes airlines and aircraft manufacturers to want to announce new deals there. The airline industry is used to Le Bourget as a place where big business is concluded: not tens, but hundreds of aircraft orders are usually announced there.

This custom has held true even when airlines were barely making any profits. Now that the tides seem to have turned and

Airline Profits

that airline profitability is improving, despite the significant gaps between regions, one would normally expect more aircraft orders at this year’s show. However, many airline leaders, especially in North America have stated a number of times and on different stages that they have learned from their past mistakes.

Therefore, the new mantra is: capacity discipline. This discipline guideline was also conveyed at the IATA’s 71st AGM last week.

June 2015

Typically, the capacity discipline promoters

want

to

maintain

more or less the same fleet size and the same capacity in terms of available seat miles (ASM), so as to take advantage of current high passenger load factors.

With that said, we will find out at the end of the Paris Air Show if the discipline guideline has had an impact on the total number of aircraft orders this year and to what extent.

Volume I—Issue 3

“ Speculation is only a word covering the making of money out of the manipulation of prices, instead of supplying goods and

services. ― Henry Ford

Airline Profits

www.airlineprofits.com

@AirlineProfits

Available in Kindle & Paperback on Amazon

Airline Profits

June 2015

Volume I—Issue 3

Paradigm Are You Attracting the Right Talent to Improve Your Performance?

At a time when “Talent” is being used across the board as the new jargon to qualify employees, this is a topic of interest that Airline Profits would like to consider. Many views have been shared on the workforce, which in some cases have paved the way for this brief discussion. While the notion is widespread and generally accepted that people are the number one asset of an organization, some objections are worth considering.

For instance, the bestselling author and researcher Jim Collins refuted that assertion by stating

the following: “People are not the number one asset of an organization, the right people are”. In oth-

er words, only the right people for your organization can be considered as talents or true talents.

The talents are your collaborators or employees who have truly bought into your vision, because they believe what your organization stands for...

But the question one might ask is: who are the right people for a given organization? To answer that pertinent question we will refer to what Simon Sinek, another successful author has said: the right people for your organiza-

And if you have read our fea-

tured article on Vision Load Factor, which appeared in the April 2015 edition of Airline Profits,

you will see a direct link with this one.

tion are those who believe what

you believe.

34

www.airlineprofits.com

The talents are your collaborators or employees who have truly bought into your vision, because they believe what your organization stands for, what you are going after and they are ready to make their contribution toward the achievement of that purpose.

Photo Credit: Envato Photodune

This is the point where it is necessary to make an important clarification. The concept of Vision Load Factor does not suggest that you are running a company of “yes-men”. This was also explained in the webinar on the same topic, which you can watch at your leisure at: www.airlineprofits.com/ webinars. An organization with a high Vision Load Factor is a place where people know where you are going and they are fully on board with you in getting there.

Airline Profits

And because of that very fact, they can openly question and challenge the status quo and contribute on a daily basis toward the accomplishment of what you have set out to achieve.

While by definition every one of us has got some sort of talent and therefore is a talent in his or her own rights, in the context of an organization, employees cannot be mistaken for talents, unless they are: Totally Aligned, Loyal,

June 2015

Engaged and Naturally Tenacious.

There is much to say about the TALENT criteria, which can help to identify and select true talents in order to improve your performance. However, before concluding, we will illustrate the point with the following short cases about airline employees who have demonstrated that they are true talents within their respective organizations.

Volume I—Issue 3

Airline Profits

June 2015

Volume I—Issue 3

Paradigm The first case occurred in Tucson, Arizona and was reported in

Southwest’s SPIRIT Magazine in April 2013. It is about a Southwest Airlines’ customer service

agent who used her own money and paid a difference in airfare for a customer. The customer had

not only lost her wallet with her ID card, but also had showed up for the wrong flight at the wrong

airport.

The second case occurred in Ontario, California and was reported in an article by CTV News (ctvnews.ca) in March 2015. It is about another customer service agent, this one from Alaska Airlines who used her own money and bought a ticket for another airline’s passenger whose return flight was cancelled, so she could get back to Vancouver, British Columbia on the same day.

These stories are very similar and do show plainly that these two agents knew that they were in the business of serving people,

In the context of an organization, employees cannot be mistaken for talents, unless they are: Totally Aligned, Loyal, Engaged and Naturally Tenacious.

well beyond their job descriptions. And that is pure and true talent. Finding more of this type of employees, putting them in the right positions and empowering them to serve your customers, will certainly improve your performance and cause your business to thrive. This article shall end here, but for your information, the book The TALENT Criteria is being offered as perk in support of our crowdfunding campaign on Indiegogo at: http://igg.me/at/airlineprofits.

28

www.airlineprofits.com

Joy, Life & Service

“I slept and dreamt that life was joy. I awoke and saw that life

was service. I acted and behold, service was joy.”

— Rabindranath Tagore

Airline Profits

June 2015

Volume I—Issue 3

“ For anything worth having one must pay the price; and the price is always work, patience, love,

self-sacrifice - no paper currency, no promises to pay, but the gold of real service.

―John Burroughs

Airline Profits

www.airlineprofits.com

@AirlineProfits

Available in Kindle Book on Amazon

“ In order to sell a product or a service, a company must establish a relationship

with the consumer. It must build trust and rapport. It must understand the customer's needs, and it must provide a

product that delivers the promised benefits.

― Jay Levinson

Airline Profits

www.airlineprofits.com

@AirlineProfits

For more information visit www.airlineprofits.com/webinars

www.airlineprofits.com