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Russian Aeroflot remains China’s ‘Favorite International Airline’

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Russia’s Aeroflot has been once again named the Favorite International Airline in China. The award was given to Aeroflot for the third consecutive year at the Flyer Award Ceremony 2019. The award ceremony was held today in Shanghai, the economic capital of China.

The awards are supported by the Civil Aviation Administration of China (CAAC). Winners are selected by the jury and by votes from frequent flyers and travelers.

The awards recognize outstanding participants in China’s dynamically developing tourism market. Previous winners include leading global airlines, including carriers that hold Skytrax 5-Star Airline status.

Aeroflot retained the title of Favorite International Airline at the competitive Flyer Awards due to its key competitive advantages: high service quality and flexible fare policy.

“The recognition of Aeroflot as the Favorite International Airline in China is confirmation of the effectiveness of our strategic efforts in China,” Aeroflot CEO Vitaly Saveliev said. “We offer our customers a wide route network and one of the youngest fleets in the world. Millions of Chinese passengers choose our airline for affordable ticket prices, convenient transit via our hub airport Sheremetyevo and high-quality service. Further development of service on Europe-Asia transit routes – one of the most competitive aviation markets globally – is one of Aeroflot’s key goals, along with the active expansion of the domestic route network.”

Aeroflot’s convenient routes encompass four key locations in China: Beijing, Shanghai, Hong Kong and Guangzhou. Aeroflot continuously adds new services oriented at the Chinese market. Earlier Aeroflot signed a partnership agreement with Alipay, China’s most popular payment system.

Aeroflot’s official website has a Chinese-language interface. Passengers receive menus in Chinese, and the in-flight entertainment system is available in Chinese. Onboard announcements are made in Chinese and the menu offers a special Asian set.

Aeroflot consistently enjoys wide recognition and popularity among consumers in the Chinese market. In January, Aeroflot was named Best China – Europe Transit Airline at the 2019 Stars Awards in China.

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SriLankan Airlines’ new plan to be like Emirates

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In a bid to turn the loss making airline into a profitable venture, SriLankan Airlines has come up with a five-year strategic plan. Part of the plan will see them emulating industry leader Emirates, with a new hub and spoke network model.

In a statement SriLankan Airlines said:

“SriLankan Airlines has formulated a new five-year Strategic Business Plan for the period 2019-24 with the objective of transforming itself into a financially viable organization airline group with high brand visibility and a global reputation for excellence,”

They went on to say that the national carrier had an ‘enormous contribution’ to make to the GDP of Sri Lanka, including import, export and tourism.

What is SriLankan Airlines planning?

Their latest five year strategic business plan includes major development of the Colombo hub to make it a key connecting point for a variety of markets. SriLankan are targeting passengers connecting through Africa, Asia and the Middle East, in a bid to grow as big as rival airline Emirates.

As a member of Oneworld, SriLankan are hoping to leverage their membership to develop their network for the future. In contrast to their current point to point model, they plan to work on more of a hub and spoke model to develop new opportunities.

The plan is to be presented to the Government of Sri Lanka for approval shortly.

New routes and fleet

Currently, SriLankan Airlines operate with a fleet of 27 Airbus aircraft. Specifically, these are 13 A320 family aircraft and 14 A330s. As part of the five year plan, the carrier intends to select new fleet inclusions which match the requirement of their developing route network. They have also said they want to reconfigure their existing fleet to offer an enhanced business class service.

Already, the airline has announced a fifth weekly service between Colombo and Tokyo from July onwards, using its Airbus A330-300s. If the plan is formalized by the government, we expect to see many more new route announcements over the coming weeks.

As well as routes and fleet, the plan specifies that it will:

  • Enhance the customer experience by improving customer-centricity throughout the airline
  • Adopt best practices to improve productivity
  • Grow online sales to reach a wider market in a more cost effective manner
  • Improve employee engagement
  • Implement a competitive cost structure through a greater cost consciousness throughout the company

The plan is being headed up by Group Chief Executive Officer Vipula Gunatilleka, who was appointed to the airline in mid-2018. Prior to joining SriLankan, Gunatilleka was a board member and CFO of TAAG Angola. There, he worked closely with Emirates while they were managing TAAG, so no doubt knows his hub and spoke business very well already.

A loss-making airline

The airline is undergoing a major shakeup with a view to turning a profit. Over the last nine months, the carrier’s net loss more than doubled to a total loss of $135m. It is hoped that the five year strategic plan being tabled today will transform the airline by 2024.

 

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Passenger satisfaction at baggage collection jumps to new high with mobile notifications

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While the adoption of technology has improved passenger satisfaction across the airport journey, the biggest jump by far over the past year was at baggage collection. 2019 Passenger IT Insights shows that passengers are demanding more mobile services in relation to their baggage and where these are available, satisfaction levels have surged.

The research shows that 26% of passengers in 2018 used their mobile device to receive status updates on their baggage at arrival, up from 14% in 2017. At the same time, there is a growing demand from passengers to receive more baggage information via their mobile devices. A majority of passengers said they would definitely use mobile notifications providing information on baggage at arrival while a similar proportion said they would use their mobiles to track their bags or to report mishandled baggage.

These mobile services have dramatically improved passenger satisfaction levels. In 2018, those travelers who used their mobile to receive updates at baggage collection were 8.6% more satisfied than those who relied on traditional voice announcements or flight information screens for information. In fact, those who relied on traditional voice or screen announcements for updates ranked baggage collection as one of the lowest points in their journey while those receiving mobile updates perceived this step as one where they were most satisfied.

Peter Drummond, Director of Baggage at SITA, said: “Today airports and airlines are increasingly tracking bags at key points across their journey. While this tracking data is primarily used to provide better oversight of baggage and reduce mishandling, many operators are providing some, or all, of this information to passengers as a mobile service. This is being done either through the airline or airport mobile app or other notifications such as SMS.

“As we have seen from the survey, this service has a tremendously positive impact on passengers’ airport experience. It provides a significant positive boost to the way they perceive their travel, while reducing anxiety around baggage. It is a strong endorsement of the benefits of baggage tracking in addition to the improvements in mishandling rates we have already seen where tracking solutions are in place,” said Drummond.

A potential force driving adoption of mobile baggage services is the growing number of checked bags in 2018.

Drummond added: “More than 4.3 billion bags were checked in by passengers globally. This is an average of 1.2 bags per person, up from 1.08 bags per passenger in 2017. The rise in checked baggage is likely to drive demand for more services as passengers want to know where their bags are at all times. Those airports that track bags across the journey are well placed to offer this service.”

The key findings of the report are based on a survey of passengers from 20 countries across the Americas, Asia, Europe, Middle East and Africa, representing over 70% of global passenger traffic.

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