Lawrence Gee | Marketing, Internet, Creativity, Strategy

Southwest Airlines - PR Mess or Opportunity?

Announced today, Southwest Airlines (SWA) is voluntarily grounding 44 of its planes to determine if they need further safety inspections.  This comes on the heels of news that SWA flew nearly 60,000 flights between June 2006 and March 2007, while failing to comply with an FAA directive that required inspections to detect fatigue cracking.  Even after SWA found out they were out of compliance they still flew 1,451 additional flights in March 2007.  It was later found out that 6 out of their 46 planes indeed had fatigue cracks on the fuselage area which could be potentially put flights at risk.

Obviously for an airline, safety issues immediately raise many questions in people’s mind during their purchase decisions.  The troubling part of this public relations nightmare for SWA is how they can rebuild trust in the mind of consumers.  Trust and safety are most likely #1 in the aircraft passengers priorities.  I want to know that I will get from Point A to Point B safely.  Being on time, better food, comfortable seats are much less important if I have to question if I will make it to a destination.  How much damage will this safety violations cause SWA in their bottomline?  Only time will tell.

Voluntary grounding of their planes is a good first step in rebuilding trust in the market.  They’ve also put three employees on administrative leave and have made public apologies and declarations that safety is of utmost importance.  Much like the many recalls in history - Tylenol’s scare in the 1980s to Mattel’s lead paint issues just last year - the fervor will die down.  Southwest has never had any flight catastrophe and will most likely bounce back.  However it does open up opportunities for other players to steal market share.  One that immediately comes to mind is Virgin America.

Virgin America, is a new low cost carrier, that emphasizes the experience of fun and chicness.  Currently it has limited flights but it does share the popular LAX-SFO and SFO-LAS routes with Southwest Airlines.  Virgin’s marketing has recently revolved around price but with SWA’s recent troubles has an opportunity to really induce trial and hopefully convert them into lifelong customers.

Virgin America can ramp up marketing efforts to be top of mind for consumers who normally would have always flown Southwest.  Some big ideas for major themes or emphasis points that Virgin America could wrap around marketing, could include:

• A New Airlines Means New Planes
• Low-Fares doesn’t mean skimping on quality (emphasis on the unique Virgin America flight experience)
• Taking pride in taking care of you before, during, and after the flight (experience the Virgin Difference)
• Putting Richard Branson (or another face) squarely in the minds of consumers.  Show that Virgin is more than just a business.  A humanization aspect could enhance feelings of safety and build trust.

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