Cathay Pacific's exemplary safety record, one of the best in the business, is a feather in its cap, helping ensure its popularity with the many Hong Kongers who are willing to pay a bit extra to fly with Cathay rather than anyone else.
The airline's reputation and its ability to charge a premium, however, has been dented by a recent run of mechanical problems over the last six to eight months, in which pilots had to curtail or abort flights.
Although the Cathay PR machine has done a good job keeping the negative publicity under control, public speculation that standards may be buckling under the weight of spiralling passenger numbers is in danger of undermining its pristine safety claim.
Cathay carried a record number of passengers and freight last year, demonstrating that not only is it one of Hong Kong's strongest brands, but also one of its most successful. But is it truly loved? Not by everyone. The airline's perceived coldness and arrogance appears to have rubbed the media up the wrong way, which have been reporting on its latest mishaps with glee.
Weathering squalls such as these is something all airlines have to do one time or another, and Hong Kong's national carrier, protected by its brand, should come through less affected than most. The Cathay brand has roots in iconic campaigns such as 'Arrive in Better Shape' from the '80s, which helped elevate the airline to a level that left most competitors looking grounded.
Long-term brand-building took a break in the tough times following 9/11 and Sars, however, and pundits have questioned whether Cathay's recent communications are far-sighted enough to stand the airline in such good stead in the future. Forceful brand propostions developed by rival carriers mean that Cathay's brand won't have such a clear run in the years to come.
The airline's engine problems may not cause serious long-term damage to its image, but they do demonstrate that the airline is no longer operating in a class of its own. If Cathay's marketing fails to soar, it may find that like one of its recently aborted flights, it has to go back and start the whole process of building a powerful positioning all over again.
VITAL SIGNS
DATE WHAT HAPPENED WHY
Jan 12 05 Los Angeles - Hong Kong Pilot shuts down one of
flight diverts to Taipei the engines
Dec 1 04 India bound flight returns Engine debris falls onto
to Bangkok parked car shortly after
take-off
Nov 18 04 Hong Kong bound flight Pilot shuts down one of
returns to London the engines
Nov 10 04 Hong Kong bound flight Passengers report flames
returns to Los Angeles coming from one engine
Sept 5 04 London bound flight Pilot shuts down one of
returns to Hong Kong the engines
Source: South China Morning Post.
DIAGNOSIS - Chris Kyme Creative director at large
This is a tough one. At the same time, I also think it's quite simple.
Cathay Pacific needs to revisit its positioning strategy, or rather, come up with one. Rather like Hong Kong itself, Cathay doesn't seem to understand what aspect of its competitive value proposition to nail its colours against.
Until it gets that right it will wonder aimlessly from execution to execution.
The good news is it has a great product. It offers a consistently great flying experience that comes down to good management, high standards, and just the right service.
Surely, then, its advertising and promotions should live up to that?
Based on the current work, the airline has lost its way. Sure, I understand the thinking behind 'It's the little things we remember' and if it came from research, great. That doesn't mean it automatically translates into a good, long-term strategy. And I have no idea what 'Now you're flying' is supposed to mean, except that it begs the question 'were you not before?'.While the new work is classy looking, it's saying nothing that hasn't been said a million times before in the airline and hospitality industries. With competition from mainland airlines now increasing, it's more important than ever to get this right, or Cathay will end up being just another China airline.
DIAGNOSIS - David Croasdale, Business director, Newell Public Relations
Cathay Pacific is one of Asia's best airlines, but a spate of engine problems has many passengers wondering if standards are slipping.
The most high-profile incident was when an India bound Boeing 777-300 took off from Bangkok on December 1 last year, and shed a two metre-long chunk of metal from the engine onto a passing car. The flight subsequently returned to Bangkok safely.
In terms of communications management, Cathay handled the incidents very well - illustrating a well-defined and executed crisis communications plan. In any crisis communications, it is important to focus your messages.
In this case: that safety is Cathay's top priority; it operates one of the youngest fleets in the world; and its engineering and air crews have a worldwide reputation for excellence. Aside from this, Cathay stressed it was working closely with the Boeing and international aviation bodies and had pulled all Boeing 777-300s out of service for safety checks.
Overall, Cathay is handling the engine problems along textbook lines.
However, there has been speculation that the airline's fleet was being stretched thin due to the upsurge in travel last year, and that the maintenance facility in Xiamen was not up to the same standards as Hong Kong. Cathay needs to address these issues.
TREATMENT
Kyme's prescription
- Take a leaf out of the Emirates flight manual: get a strong, unique, long term positioning strategy. Something which is designed to propel the brand into the future. It must be believable, but it should also seek to differentiate (I mean, please - in-flight phones?) .
- Then, make sure that every execution in every form of media or CRM activity adheres to it and the product lives up to it. A great positioning can also be a great internal motivator. Something to believe in, to stand for, and to consistently deliver.
Croasdale's remedy
- Take media and selected Marco Polo Club frequent flyers on a tour of the aircraft maintenance facilities in Xiamen.
- Make additional announcements on fleet expansion to counter concerns about being stretched too thin.
- Come across a little more humble before the media - Cathay can at times appear to be overly arrogant. In any crisis, it is important to show sincere concern for both the public and customers.