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Airline CEOs Take the Lead to Build Powerful Brands
By Patricia Thorp

In an era when airline CEOs are under constant pressure to focus on operational challenges and financial crises, the CEO who chooses to take a high-profile marketing role gives his airline a tremendous competitive edge. This advantage stems from three key branding initiatives that are best performed by the CEO: brand champion, brand differentiator and trusted leader.

One executive who is well-known for his flamboyant actions is Virgin Atlantic CEO Richard Branson. But don't let his wild antics fool you. Branson runs his company as if it were a "branded venture-capital firm." He supplies the brand, a small initial investment and then takes majority control. He has built his brand into a multi-million-dollar marketing tool.

Branson positions Virgin Atlantic as a posh, hip airline that provides luxurious amenities and exceptional customer service. He forecasts that Virgin Atlantic's fleet will someday feature gyms and bedrooms.

Few airline CEOs want to match Branson's eccentric style. But other CEOs, such as David Neeleman of JetBlue, are quite competent marketers in their own right.

Neeleman is a classic example of a brand differentiator. His airline, known for its on-board entertainment systems and leather seats, aims to bring the glamour back into flying like the old Pan Am days. One of Neeleman's corporate goals is for Jet Blue to be the first airline in history that people go out of their way to fly simply because they like it. To achieve that goal, Neeleman takes a hands-on approach. He helps load baggage, checks passengers, flies every week and sometimes dons an apron to serve refreshments to passengers. Neeleman's marketing mantra: JetBlue is "not in the aviation business, but the service business."

CEOs can take the lead in another key marketing area: trust and credibility. A trusted leader is as valuable as a brand champion or brand differentiator. Herb Kelleher, chairman of Southwest Airlines, is one executive whose leadership style conveys trust and credibility.

Kelleher's reputation as a trusted leader is crucial to the airline's success. Proof: The airline's pilots union recently demonstrated its trust in leadership by negotiating a five-year contract that included stock options but no pay increases. Southwest is the most profitable airline in America - and has not had a layoff in its 31 year history.

Another executive who powerfully conveys trust is Enrique Cueto, chairman of LAN. Cueto is re-branding LAN to achieve his goal of creating the first true Latin American Network because he believes having one name, one vision and one brand will lead to long-term success. His airline recently received high-profile recognition from Hispanic Business magazine, which rated it the Best Company in Latin America.

Studies show that trusted leaders like Kelleher and Cueto have a direct impact on their companies' bottom lines. According to a recent Watson Wyatt report, companies that build strong confidence and trusted leadership deliver shareholder returns 40 percent higher than companies where trust indicators are low.

The role of the CEO in building a brand has never been more important in the airline industry. Even low-cost carriers know that they must successfully brand their product, or risk failure. According to industry analysts, low-cost airlines already carry about 25 percent of all domestic airline passengers and will carry up to 40 percent of U.S. fliers by 2006.

Whatever style a CEO chooses to take - as flamboyant as Richard Branson or as trusted as Herb Kelleher - successful branding initiatives can be traced to the airline's bottom line. For these three branding initiatives - brand champion, service differentiator or trusted leader - the CEO must take on this pivotal role that is necessary for marketing success.