Airliners-India.com Flickr Group & Facebook    FAQ   Search   Memberlist   Usergroups   Register   Profile   Log in to check your private messages   Log in  9W Highest Loser in Brand Value          Airliners-India.com Forum Index -> Civil Aviation View previous topic :: View next topic   Author Message me111993 Member Joined: 04 Sep 2009 Posts: 3225 Location: MAA/AMD Posted: Fri Nov 20, 2009 7:23 pm    Post subject: 9W Highest Loser in Brand Value http://economictimes.indiatimes.com/news/news-by-company/corporate-trends/RIL-again-tops-valuable-brands-chart/articleshow/5249288.cms Using the relief-from-royalty method of brand valuation, which assumes that a company does not own its brand and needs to license it from a third party, Brand Finance India’s Top 50 Most Valuable (Company) Brands, 2009, was drawn up from consumer-facing corporate brands listed on BSE. Jet Airways turned out to be the highest loser, with it's brand value dropping by 56%. A lot of 9W followers and admirers have commented on Jet's declining value and have clearly expressed their dissappointment to this fact. Majority of the reason is attributed to the launch on 9W Konnect. There is however a clear understanding to the fact that launching Konnect was more of a necessicity and 9W have tremendous potential to bounce back into the Top 10! None of the other Indian International carriers namely Kingfisher Airlines (India's only 5* airline) and Air India (Our National Carrier) were present on this list. me111993 Back to top justbala Member Joined: 11 Jan 2007 Posts: 1898 Location: Bangalore Posted: Sat Nov 21, 2009 3:03 pm    Post subject: Re: 9W Highest Loser in Brand Value me111993 wrote: http://economictimes.indiatimes.com/news/news-by-company/corporate-trends/RIL-again-tops-valuable-brands-chart/articleshow/5249288.cms Using the relief-from-royalty method of brand valuation, which assumes that a company does not own its brand and needs to license it from a third party, Brand Finance India’s Top 50 Most Valuable (Company) Brands, 2009, was drawn up from consumer-facing corporate brands listed on BSE. Jet Airways turned out to be the highest loser, with it's brand value dropping by 56%. A lot of 9W followers and admirers have commented on Jet's declining value and have clearly expressed their dissappointment to this fact. Majority of the reason is attributed to the launch on 9W Konnect. There is however a clear understanding to the fact that launching Konnect was more of a necessicity and 9W have tremendous potential to bounce back into the Top 10! None of the other Indian International carriers namely Kingfisher Airlines (India's only 5* airline) and Air India (Our National Carrier) were present on this list. me111993 I can totally understand this from my personal experience. Till the first quarter of this year, i was a a die hard 9W fan. All my overseas trips used to be either on 9W or on a 9W FFP partner (as far as possible). But with more n more 9W routes going the Konnect route, I do not see much incentive in the 9W FFP program. No Lounge Access is a big bummer!! My most frequent flight is the 3:15 AM BOM-BLR, and the BLR-TRV-BLR sector. With both these being turned into Konnect, i have shifted my loyalities elsewhere!! BOM-BLR is now the 2 AM AI flight, BLR-TRV is now on IT and my primary FFP now is Miles&More. I am sure there are many more like me who are now (sadly) ex-9W loyalists!! Back to top G-BYGB Member Joined: 21 Dec 2006 Posts: 1813 Location: Bangalore/Delhi Posted: Sat Nov 21, 2009 8:14 pm    Post subject: All the premium class or business class passengers will have to accept the fact that,Low-Cost model is the reality right now.Coz quantity also matters apart from quality alone. Jet airways might have lost its brand identity amongst corporate travellers but if it can operate flights at a lower cost and at the right time,it can again see a jump in their revenue.Coz most of the pax who are flying in other low cost carriers might again shift their loyalties to 9W. _________________ www.flickr.com/G-BYGB photos Back to top iah87 Member Joined: 17 Apr 2007 Posts: 2566 Posted: Sat Nov 21, 2009 9:50 pm    Post subject: I dont see how any one can criticize 9W for introducing Jet Konnect. Carriers like Indigo and Spice Jet were eating their lunch especially from BLR, where they in danger of becoming the 3rd in domestic traffic behind Kingfisher and Indigo. I have flown 9W many times and every time the first class was nearly empty on almost all sectors I have flown, even the BOM-DEL sector. I always wondered why does'nt 9W upgrade their frequent flyers more liberally or there are not enough frequent flyers flying them. Back to top Spiderguy252 Member Joined: 10 Aug 2007 Posts: 4259 Location: Indian Ocean Posted: Sat Nov 21, 2009 10:12 pm    Post subject: 9W Konnect was more of a necessity, if that makes 9W lose brand value, so be it. At the end of the day, 9W mainline still offers the same level of service, and 9W is obviously making some money out of this. http://airlinersindia.s4.bizhat.com/viewtopic.php?t=7894 Here's the same thought above. _________________ Yeah. Back to top justbala Member Joined: 11 Jan 2007 Posts: 1898 Location: Bangalore Posted: Sun Nov 22, 2009 9:03 am    Post subject: Spiderguy252 wrote: 9W Konnect was more of a necessity, if that makes 9W lose brand value, so be it. At the end of the day, 9W mainline still offers the same level of service, and 9W is obviously making some money out of this. http://airlinersindia.s4.bizhat.com/viewtopic.php?t=7894 Here's the same thought above. While Konnect could be a necessity, the way 9W has gone about introducing it has not been very appealling to its core base - corporates and business fliers. Sample this - IT Red provides Lounge access to Gold King Club members and Indigo provides free food and drink to corporate customers. 9W Konnect does not provide any of these. It could also be a case of perception. With LCC carriers anything you get is a bonus. But when you are on a 9W Konnect flight, you expect 9W standards of service - but all tht you get is "Sorry Sir - we dont carry pillows,blankets,newspapers etc.." and are dished the standard LCC CCD fare, u feel let down. Maybe it was bad advertising. I was made to belv tht the only difference between 9W and 9W Konnect was tht I had to pay for food in the latter - but there is a whole lot more tht was not made apparent. I am sure the legendary 9W service is not just limited to a smiling f/a. Today given a choice between 9W and 6E, i would choose 6E - they have better a/cs, seat pitch and a lil more choice in wht they offer. Back to top me111993 Member Joined: 04 Sep 2009 Posts: 3225 Location: MAA/AMD Posted: Sun Nov 22, 2009 11:58 am    Post subject: The main reason for launching Konnect was due to the declining nos of corporate and business travellers. The main attraction that Konnect offers is a FFP which is offered by no other airline except IT red, and 9w's extensive intl network and allainces with so many other airlines gives Konnect the edge over IT red. There is a difference of prespective here. My father has been a 9w plat member since '01 and I've really seen the privalages offered to him. I'll just give you a very recent example, a few weeks ago, my father had gone to LHR, with routing AMD-BOM-LHR-BOM-AMD, all on 9w/9w konnect. On the return leg, i.e either on LHR-BOM or BOM-AMD, he found that due to poor baggage handling, the chain was broken. He complained at around 8 in the morning (he returned by the 0540 early morning flight), there was a person at my place around 12 noon who took the bag and returned it fixed at 5 that very evening. The fix was charge free for us and it was not just any chain fix, it was an AE chain for an AE bag. The lounge access is the only issue, which I believe if all 9w gold and plat members write to 9w expressing their dissappointment, things would change. Me111993 Back to top sshank Member Joined: 16 May 2007 Posts: 377 Location: NYC Posted: Sun Nov 22, 2009 2:33 pm    Post subject: iah87 wrote: I dont see how any one can criticize 9W for introducing Jet Konnect. Carriers like Indigo and Spice Jet were eating their lunch especially from BLR, where they in danger of becoming the 3rd in domestic traffic behind Kingfisher and Indigo. I have flown 9W many times and every time the first class was nearly empty on almost all sectors I have flown, even the BOM-DEL sector. I always wondered why does'nt 9W upgrade their frequent flyers more liberally or there are not enough frequent flyers flying them. Perhaps they can start by cutting down the number of domestic first seats - don't their 738s have something like 24F seats? Going down to 12 or 16 may help - world over companies rarely pay for First for domestic travel. It makes no sense to send planes out with most of the F seats empty - they should consider upgrading thier FF members, it will help build a loyal FF base. This is what CO does (and soon UA will too) with their unlimited elite upgrades (domestic and domestic configured international aircraft). I suppoose this will never happen at 9W because they think their F product is something to be cherished and worshipped. Back to top me111993 Member Joined: 04 Sep 2009 Posts: 3225 Location: MAA/AMD Posted: Sun Nov 22, 2009 2:55 pm    Post subject: Currently, not much difference is felt in 9W Konnect and other LCC carriers. Once DEL's T-3 opens (integrated) then IT Red flights as well as 9W Konnect flights will operate out of T-3 while other LCC's will get T-1D. Also 9W konnect offeres customers alot of benifits like SMS/Web Check-in, priority tags, etc... me111993 Back to top justbala Member Joined: 11 Jan 2007 Posts: 1898 Location: Bangalore Posted: Sun Nov 22, 2009 6:33 pm    Post subject: sshank wrote: iah87 wrote: I dont see how any one can criticize 9W for introducing Jet Konnect. Carriers like Indigo and Spice Jet were eating their lunch especially from BLR, where they in danger of becoming the 3rd in domestic traffic behind Kingfisher and Indigo. I have flown 9W many times and every time the first class was nearly empty on almost all sectors I have flown, even the BOM-DEL sector. I always wondered why does'nt 9W upgrade their frequent flyers more liberally or there are not enough frequent flyers flying them. Perhaps they can start by cutting down the number of domestic first seats - don't their 738s have something like 24F seats? Going down to 12 or 16 may help - world over companies rarely pay for First for domestic travel. It makes no sense to send planes out with most of the F seats empty - they should consider upgrading thier FF members, it will help build a loyal FF base. This is what CO does (and soon UA will too) with their unlimited elite upgrades (domestic and domestic configured international aircraft). I suppoose this will never happen at 9W because they think their F product is something to be cherished and worshipped. Why cant 9W Konnect have both Y & J classes (J could either be full blown business or a premium economy). The Y class can continue on the current LCC model, while the smaller J class can cater to the section willing to pay more for comfort. Right now they seem to be simply trying to ape a full LCC model, which might not exactly be the right way for them. Back to top d3vski Member Joined: 17 Apr 2009 Posts: 440 Location: In the First Class lounge..... Posted: Mon Nov 23, 2009 2:47 am    Post subject: justbala wrote: sshank wrote: iah87 wrote: I dont see how any one can criticize 9W for introducing Jet Konnect. Carriers like Indigo and Spice Jet were eating their lunch especially from BLR, where they in danger of becoming the 3rd in domestic traffic behind Kingfisher and Indigo. I have flown 9W many times and every time the first class was nearly empty on almost all sectors I have flown, even the BOM-DEL sector. I always wondered why does'nt 9W upgrade their frequent flyers more liberally or there are not enough frequent flyers flying them. Perhaps they can start by cutting down the number of domestic first seats - don't their 738s have something like 24F seats? Going down to 12 or 16 may help - world over companies rarely pay for First for domestic travel. It makes no sense to send planes out with most of the F seats empty - they should consider upgrading thier FF members, it will help build a loyal FF base. This is what CO does (and soon UA will too) with their unlimited elite upgrades (domestic and domestic configured international aircraft). I suppoose this will never happen at 9W because they think their F product is something to be cherished and worshipped. Why cant 9W Konnect have both Y & J classes (J could either be full blown business or a premium economy). The Y class can continue on the current LCC model, while the smaller J class can cater to the section willing to pay more for comfort. Right now they seem to be simply trying to ape a full LCC model, which might not exactly be the right way for them. still do not understand how Jet could possibly cut costs with Jet Konnect by just eliminating food and putting all Y seats unless they did what IT done and changed staff contracts to turn them into: more you fly, more you earn earn! (for indian citizen staff only!), efficiency based earning packages. correct me if im wrong, the planes still use the same amount of fuel, baggage allowance is still the same, crew numbers are still the same, ground services are still done by Jet staff, airport landing fees still the same, leasing costs still the same! Do they really think that by charging 200Rs for a hot breakfast, they can lower costs. Back to top Aseem Member Joined: 15 Dec 2006 Posts: 2841 Location: YYZ Posted: Mon Nov 23, 2009 3:16 am    Post subject: I guess all managers get confused between cutting cost and revenue! Back to top avbuff Member Joined: 22 Dec 2006 Posts: 5031 Posted: Mon Nov 23, 2009 3:49 am    Post subject: d3vski wrote: still do not understand how Jet could possibly cut costs with Jet Konnect by just eliminating food and putting all Y seats unless they did what IT done and changed staff contracts to turn them into: more you fly, more you earn earn! (for indian citizen staff only!), efficiency based earning packages. correct me if im wrong, the planes still use the same amount of fuel, baggage allowance is still the same, crew numbers are still the same, ground services are still done by Jet staff, airport landing fees still the same, leasing costs still the same! Do they really think that by charging 200Rs for a hot breakfast, they can lower costs. When going into all Economy flight, you have added 50-60 more seats in Y and no J. Given the premium travel in India has gone down, this has become a common phenomenon. It can be possible that a good amount of loss may have been due to unwanted J class cabins flying empty. For Kingfisher the issue maybe different, but it does not mean industry wise it is the same problem. Also, now that 9W sells food on board ... the management does a study as to on an average how many meals are required .. what kind etc. Gourmet special meals and all that do not come into the picture which reduces cost to a significant extent. 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