I titled my first blog here for this semester’s independent research on the commercial aviation industry “the stories behind the metal birds.” The past few months were a blink. Now, at the end of May, I am sitting in front of my laptop composing my last blog entry. But before I revisit the “stories” I have looked over the course of my work, I want to first share a story about how I personally came to be fascinated by the airline industry.
Afternoon view of the Hollywood Hills (picture taken by myself in January 2017)
As a continuation of my previous discussions about United Express Flight 3411, Part II includes a closer examination of the incident from perspectives of both United Airlines and today’s commercial aviation industry.
The end of Part I seems to suggest an easily-reached conclusion: since clauses regarding overbooking are specified in the contract of carriage, airlines could as easily deny a passenger to board if they see a greater economic interest in selling more tickets or accommodating other last-minute top-tier frequent flyers or VIPs. As long as airlines see a smaller marginal cost to denying a “regular passenger” onboard, they are free to do so within the legal frame. And in the case of United Express Flight 3411, the “VIPs” were four “deadhead crew” who needed to fly from their base in Chicago to Louisville to serve another flight. Again, what the crew on that flight did was perfectly legal: after 9/11, for security reasons, on U.S. commercial aircrafts, crew members are given the absolute authority and failure to comply with any of their instructions could result in the intervention of law enforcement. But this time, with the rapid spread of this incident’s footage on the Internet, the marginal cost of denying David Dao skyrocketed.
Lufthansa 747-8 at Frankfurt Airport (picture taken by myself in March 2017)
We live in a digital age that relies on social media for business and social outreach. The internet has allowed for a regular conglomeration of millions of people per day on the same platform connecting and engaging with friends, advertisements, businesses, and public figures alike. For anyone creating a nonprofit, business, or awareness campaign, Facebook is a key tool that should be utilized to the fullest. Here are my top tips and tricks for using Facebook’s various features to the fullest. These tips will allow you to increase engagement and reach more people.Continue reading →
It’s been a long time since my last post…Good to be back here to talk about commercial aviation. I have previously mentioned, in my first blog, that different airlines can be seen as distinct agents that represent the cultures of their home countries. I made this point totally out of my observations. When I boarded my first few flights almost a decade ago, I started to notice different seat decorations of different carriers. It was not until later years that I figured out some meaning out of these ostensible differences. For example, hidden behind the cloud-shaped figures imprinted on seats of Air China is the oriental philosophy that promises happiness and tranquility; ANA’s signature boarding music Another Sky brings a taste of traditional Japanese music, ongaku, to its passengers. Yet as I think about the subject deeper, I have found out that the footprint of an airline’s culture extends far beyond explicit manifestations of national symbols. As you will see in the three case studies below, both the indigenous, regional culture and the internal corporate atmosphere have huge impacts on almost every dimension of an airline’s operation and the product it delivers. The cumulation of every little cultural detail, in turn, shapes the identity of airlines and helps them differentiate from their competitors.
ANA Onboard Japanese Meal Selection from Tokyo Narita to Shanghai (Picture taken by myself) Continue reading →
At the end of my last blog, I mentioned how airlines have become so adept at differentiating their products that in a foreseeable future, a greater level of customer-driven customized flight experience can be expected. In fact, not only is this phenomenon a significant trend in the airplane seat development, it also represents a unique feature of the industry’s revenue composition. When I was building an eco-hotel business model in my Business & Society class back in the fall, I noticed that approximately 10% of hotel revenue comes from sources other than regular room rates. This seems quite reasonable: after all, meals, laundry, mini-bar expenses are often an important part of travelers’ hotel bills. However, I was surprised to find out that according to a consulting firm IdeaWorks, the ancillary revenue of traditional U.S. air carriers (non-inclusive of those low-cost competitors like Southwest) had 11.9% share of their total revenue in 2015, meaning that in average, when a major U.S. airline sells a $1,000 ticket, it would later get $119 more revenue from somewhere else. While these numbers seem to illustrate the power of the “customization” I have previously mentioned, they indicate something far more profound. A deeper look into IdeaWorks’ report suggests that nearly 55% of U.S. major airline ancillary revenue came from “sale of FFP (frequent flyer program miles).” In fact, aside from the seemingly excessive baggage and seat selection charges, airlines increasingly found frequent flier programs to be just as lucrative. Arguably, the proliferation of loyalty programs in airlines has become a definitive feature of the industry, shaping the modern-day air travel landscape in so many ways.
Hello everyone. It is definitely an exciting time for me to start doing my second semester research on the past events and current developments of commercial aviation. I am a huge fan of commercial aviation since I was little, and I regularly read and write travel blogs and aviation forums to get to know the latest trends or development in this field and to share my thoughts.
Air Canada Boeing 777-300ER with service from Shanghai to Toronto (picture taken by myself)
Last week we talked about five major keys a lot of entrepreneurs use when they market their own brands and learned about how we can increase the efficiency of our own marketing strategies. As promised, this week I am going to explore how I should advertise for my own sneaker brand by learning from different marketing methods used by successful businesses. This will also be our last rodeo in the world of marketing, so without further ado, let’s get right into it!
I need to be honest here and say that this week’s study in business financial plan has been unexpectedly hard, but also eye-opening and rewarding. I have run my sneaker business with Roger and taken Economy class so I did speculate that I would have a relatively easy path through my journey in the business financial world. Apparently, the courses I took online proved me wrong, and here is how they did it: Continue reading →