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How does it make you feel?

Most would agree that it’s hard to feel sorry for Qantas. Like a stubborn old aunt, they appear all too comfortable with the reputation they’ve created over the years, and unwilling to change.

With the advent of budget airlines around the world, and the success of Virgin, they refuse to make their ticket prices competitive, or upgrade their cabin crew airplanes. Sure they acquired a couple of A380 jets, but we are well aware of how quickly the shine from these new jewels dulled.

They don’t even strive to generate feelings of warmth and patriotism in their advertising anymore. So how do they make us feel about them?

Unless you are a loyal Qantas die-hard, you may feel indifferent towards them. At worst, dismissive.

You might feel that if they had enough money and clout to overcome PR disasters such as mid-air Rolls-Royce engine explosions, and emergency landings, then they might have been strong enough to deal with the rumblings of a few unions. Perhaps you’re slightly disturbed by their nonsensical association with John Travolta. You could be forgiven for thinking Qantas are a little smug.

However, perhaps there is a disconnect between the shininess of the Qantas brand, and the reality of the company’s financial situation.

If the one they call Alan Joyce had been CEO of a struggling fashion label, and grounded his seamstresses who demanded more money, would we have been more forgiving? Perhaps if he were CEO of a publicly flailing book store chain, we would have been more understanding of all involved parties.

Could it be that Qantas’s brand position as the safest, the most reliable, and the most premium airline in Australia have distracted us from the fact that they are just another business struggling to make a profit in a post GFC world?

Much of the media coverage this issue received encouraged people to view it as a union vs corporate matter, and it worked. Australians were having impassioned conversations across the country, whilst in the blogosphere people were slandering Qantas and even defacing images of their CEO.

I was curious as to why people felt so strongly on the subject, and why so many felt so justified in expressing anger at Alan Joyce’s bold decision to ground the entire Qantas fleet.

Hindsight is 20/20 and perhaps Alan Joyce now wishes the company had waited til the New Year before announcing his $2m pay rise, but I don’t think this was the only reason there was such outrage.

I think that many Australians didn’t feel the heavy handed nature of Alan Joyce’s decision was very becoming of the flying kangaroo we once loved, the brand we thought we knew.

In this current economic climate, whether you are a restaurant owner selling pizzas, or an airline selling plane tickets, it’s not that easy to make a profit at the moment. The aviation industry has long been a notoriously difficult one to be in, even at the best of times.

The reality is that most Australians in fact do not fly Qantas internationally. So therefore, no matter which point of view you support, the unions, or the capitalists, the chances are that you’re probably not supporting Qantas at all one way or the other.

And why should you? You have a right as a consumer to choose the most affordable option available to you. Alan Joyce would probably argue that as a CEO of a privately owned business, he has a right to choose the most affordable option available to him in order to carry out the duty he is charged with; keeping Qantas profitable and the shareholders happy.

Virgin Australia – The Knight in Shining Armour

Over the weekend, Qantas took an unprecedented step in grounding its entire fleet due to industrial action, a move that affects 68,000 passengers a day. With tens of thousands of travellers stranded in Australia – and world-wide – the Australian aviation industry is in chaos. Well, all but one airline.

Virgin Australia has coolly stepped up to the challenge of filling the void left by Qantas’ grounded flights. Amazingly, Virgin Australia isn’t being seen as one company capitalising on the misfortune of another, rather as a knight in shining armour. How did they manage this feat?

Well, for starters, they aren’t charging the exorbitant fees that they could. Virgin Australia isn’t cashing in on people’s desperation by shooting prices through the roof. In fact, they are offering a 20% discount on VA saver fares to Qantas-stranded passengers. So far, this offer has been taken up by over 22,000 stranded Qantas passengers.

Secondly, Virgin Australia is doing the vast majority of heavy lifting, in terms of picking up the slack. So far, Jetstar has added one extra daily flight, and Strategic Airlines is also putting on an extra flight. In comparison, Virgin Australia added an extra 4,500 seats on Sunday the 30th of October, with an extra 40,000 seats added over the next couple of months to help cope. As a Virgin Australia spokeswoman said of the extra services:


“There will be extra revenue, but there will also be significant costs for our airline in doing all these things. Our main priority is to help the passengers that are stranded… and to keep Australians moving around the country”.

These actions have secured Virgin Australia unparalleled positive coverage across all major Australian and international media outlets. The flow-on effect of Virgin’s actions throughout this debacle has also seen their shares jump to a 10-month high, whilst Qantas’ share price has gone through tough times.

The most interesting aspect of this is that Virgin Australia hasn’t been reaching out to media to communicate all of this. Instead, updates and announcements (such as the reduced fares for stranded passengers) have been released via Facebook and Twitter. Virgin Australia has actively been engaging with its customers via direct channels, allowing timely and tailored responses.

This calm, professional, crisis-control tone that Virgin Australia has employed across all its communications has inspired trust in the brand that was once seen as the cheeky underdog. Now positioned as a challenger brand for Qantas, it is important for Virgin Australia to encourage trial. A lot of Qantas passengers who would not have tried the revised, revamped Virgin Australia are now going to be exposed to it, and potentially move their allegiances permanently.

This situation has highlighted the importance of businesses being upfront and reactive to the market. Virgin Australia did not just sit back and let stranded passengers come to them; nor did it hike its prices up to make the most of the situation. Instead, it lent a helping hand to those in need, without neglecting the needs of its existing passengers. By actively engaging with media and consumers, Virgin Australia’s reputation has been solidified in the Australian public’s mind as a trustworthy, helpful brand.