APEX EXPO 2015 Introductions: Keynote Recap

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    Keynote #1 | Alaska Airlines’ Focus on Customer Experience

    Sandy Stelling Fast Facts
    Location: SEA
    Frequent Flight: SEA-PSP
    Now Reading: Pillars of the Earth, Ken Follet
    Favorite Aircraft: B777
    Favorite Airport: PSP
    The future of flight will be: Innovative

    Alaska Airlines Fact Sheet
    Seventh-largest US carrier
    Founded: 1932 in Anchorage, Alaska
    President and CEO: Brad D. Tilden
    Hubs: SEA, LAX, ANC, PDX
    Total destinations: 104
    Average daily flights: 880
    Employees: 11,536

    Sandy Stelling, managing director of Customer Research and Development, Alaska Airlines, began the keynote sessions by sharing the strategies the airline employs to focus on the customer experience. The airline leverages data and passenger surveys to stay continually aware of passenger feedback and perception – receiving an average of 11,000 surveys per week. But Stelling makes an important distinction: “It’s not a big data project, it’s a human project,” she notes. And to convey the personal touch, Alaska focuses on its employees: “There are lots of ways to empower employees with passenger data. [But] you have to be careful on a creepy to cool spectrum of how we use the data,” she explains. Based on the passenger surveys it collects, the airline especially appreciates its frontline staff – doling out over 70,000 kudos to employees in the past seven months.

    Alaska also aims to improve the passenger experience through new products and services, such as supplied tablets and an IFE platform for passenger PEDs via SkyCast, a Pacific Northwest flare to the in-flight menu, and adding Boeing’s Space Bins for added overhead stowage onboard its aircraft.

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    Keynote Session #2 | Passion to Innovate. Power to Deliver.

    Werner Lieberherr Fast Facts
    Location: PBI
    Now Watching: Dancing With the Stars
    Favorite Aircraft: B777 and A350

    “There’s not one answer when it comes to the cabin,” said Werner Lieberherr, president and CEO, B/E Aerospace when he began his presentation, noticing the theme of flexibility and customization, which was a common thread throughout the keynotes. Offering an overview of the evolving aircraft interiors business models and products, he emphasized Etihad’s The Residence and first-class luxury interiors from Air France, Qatar Airways and others before examining Southwest Airlines’ Merdian seat, which will be launched in 2016. “It offers a great living space – I think the launch will go extremely well,” he noted.

    “Economy class is very, very important,” he explained. “But when you look from a revenue perspective, business class and premium economy are very important. I think you need to get both right as an airline.”

    The future of airline interiors innovation will be dependent on partnerships. As an example, he explained: “We work in close partnership with Nespresso. For some airlines, it’s not only important that they offer an espresso, the Nespresso is a special touch.”

    _DSC2131Keynote Session #3 | What Manufacturers Contribute to Passenger Wellbeing

    Rainer von Borstel Fast Facts
    Frequent flight: STR-HAM
    Favorite airport: MUC
    Passport stamp you wish you had: New Zealand

    In the third keynote presentation of the day, Diehl Aerosystems’ CEO Rainer von Borstel shared his vision for what manufacturers can contribute to passenger wellbeing. “We like customization,” he said, while noting that it’s necessary to meet the different passenger profiles flying today. “People over 65 now number 1.35 billion. More older people are traveling now than ever before,” he noted. Also, the needs of passengers flying short versus long-range flights are measurably different. Passenger profiles on short-medium range flights include traffic, aircraft and check-in, whereas on long-range flights the aircraft cabin environment is at the top of the list. As a result, competition among airlines in the aircraft interiors long-haul market is fierce, making differentiation and customization significant.

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    Keynote Session #4 | Envisioning the Airline of the Future

    Devin Liddell Fast Facts
    Favorite aircraft: B787
    The future of flight will be: Vibrant
    Location: SEA
    Twitter: @devinliddell

    Onboard poppi, Devin Liddell, principal Brand Strategist at Teague’s prototype of an airline of the future, middle seats are not middle seats, they’re the promotional class. There’s no cabin luggage. Instead, a fedora bin is available for the few passenger belongings passengers carry on board. The airline also offers a membership platform that provides personalized services based on passenger needs.

    The fictional airline, which Liddell developed over a four to five-month period with his colleagues at Teague, sounds fantastical, but apt. “We waned to anchor our work in business realities and show what could happen within the next five to 10 years in a replicable way,” said Liddell. The three core philosophies underpinning the brand and business model were: “love over loyalty,” “know the journey” and “membership matters.” “Loyalty in the airline industry is mostly a myth,” Liddell notes – suggesting airlines forge better relationships with customers by addressing small problems that feel big, trading in emotional currencies and making the brand feel ownable. Brand love, directly correlates with dollars earned, citing the results of the Brand Finance Rankings.

    Among the problems and solutions he presented, his ideals about baggage were some of the most radical. “Bag fees are a fine for doing business with us,” he declared. “Yes, they are great for revenue, but they cannot be the future.” On poppi, cabin luggage is removed altogether. For passengers who wish to bring a bag, they can join the airline’s Click Class to obtain custom design bags that fit into the bay of airline seats. “A perfect way for airlines to cement its relationship with passengers and to make the brand ownable for those people.”

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    Keynote Session #5 | SriLankan Airlines: A CEO’s Vision of a Personalized Journey

    SriLankan Airlines Fast Facts
    Twitter: @flysrilankan
    Alliance: oneworld
    Fleet: 21 aircraft
    Employees: 6,800

    In a special presentation, Rakhita Jayawardena, CEO, SriLankan Airlines dazzled attendees with a storied account of his vision for the national carrier. “Today, we witness key touch points along the passenger journey quickly disappearing,” he began. Tickets are purchased through a computer, check-in is done on an electronic box, another magic box scans boarding passes, and it goes on. Security checks are equally dehumanizing. “In some airports, the only thing they do not take from you is your trouser and your shirt,” he remarks.

    In his search for a single factor to differentiate his airline from competition, he had a moment of reckoning: The culture and kindness of the Sri Lankans would bring value to the airline business and provide the personal touches that are missing. Additionally, “We looked towards our history and culture and decided to develop a much-loved safety video that we are nominated for [at the 2015 Passenger Choice Awards] today,” he shared.

    Attention to the fine details drove the airline to broaden its in-flight catalog four-fold, to adopt Wi-Fi and mobile connectivity and to totally enhance its food and beverage offer. “What did you eat three days ago? You won’t remember. What did you eat on a plane two weeks ago? You will remember,” he said.

    In a short time, his vision has led to impressive results, with the cabin crew earning a rating of 89 percent for friendliness and courteousness and a 90 percent rating of continual satisfaction. Jayawardena closed his presentation, and the keynote sessions, with a quote from Judy Garland: “Always be a first-rate version of yourself, instead of a second-rate version of somebody else.”

     

    All photos by Vance Walstra.