At airlinetrends.com we are continuously on the lookout for innovative products and services launched by airlines around the world as they respond to changing customer needs and industry developments. Our aim is to brief our readers and corporate clients how airlines are differentiating the passenger experience in what is a fiercely competitive industry.

Taking a cue from the famous line of sci-fi writer William Gibson that “the future is already here, it’s just unevenly distributed,” we have selected 10 airlines from around the world that in our view are currently the most innovative in the industry, be it as part of a company culture of continuous innovation, a strategy to challenge the industry status quo, or as part of efforts to catch up after years of underinvestment.

The airlines on our innovative airlines ranking do not necessarily feature on the various ‘the world’s best airlines’ surveys that are published regularly. Instead, we aimed to select those airlines that in our view have come up with interesting innovations that are an indication of the direction the airline passenger experience is heading to – more personal, customized, connected and sustainable.

In the next few weeks, we will reveal a new airline on our list every other day and publish an in-depth article that describes the recent innovations that each airline has come up with. We will count down from number ten and at the end of May will announce airlinetrends.com’s choice of the world’s most innovative airline.

DATE In 2001, when CEO Tony Fernandes bought AirAsia for a token MYR1 plus MYR40 million (USD 12.5mln) debt, it was a failing state-owned regional carrier with only two aircraft. In just a decade, the Kuala Lumpur-based low-cost carrier (LCC) has become a pan-Asian airline group serving over 75 destinations with a fleet of over 100 aircraft. In June 2011 the airline signed an USD 18bn deal with Airbus for the delivery of 200 A320s over 15 years. Besides owning a stake in its long-haul sister airline AirAsiaX, AirAsia has local subsidiaries in Thailand and Indonesia, joint ventures in the Philippines and Vietnam, while an agreement with All Nippon Airways will see AirAsia Japan take to the skies in August 2012.

One of AirAsia’s key advantages lies in being in the right place at the right time. The airline’s pace of growth – which has made it Asia’s largest LCC with a market capitalization of USD 3 billion – is underpinned by emerging regional Asian economies, whose average annual growth rates of around 7 percent are continually lifting millions more people every year to an economic level at which budget airline flights are affordable.

Positioning
AirAsia’s stated goal is to be “the lowest cost airline in every market they serve” and its rigorous focus on expenses saw the airline charging a fee for passengers who want to use check-in desks at airports. While this now only applies to domestic passengers, it’s just one example that has led AirAsia to operate with the world’s lowest unit costs (in terms of available seat kilometres), which are lower than both Southwest Airlines in the US – who invented the low-cost model – and Europe’s ultra low-cost carrier Ryanair.

In the air, AirAsia is a classic LCC that offers few additional frills. AirAsia’s fleet of more than 100 A320 aircraft all have 186 leather seats and passengers pay for checked bags, can reserve their seat for a fee and buy their food and beverages onboard. On the ground at its hub at Kuala Lumpur International Airport, however, AirAsia has added more hybrid features such as a ‘Fly-Thru’ transit service for connecting passengers with flight transfers of at least 90 minutes. In March 2011, the airline launched a ‘Red Carpet’ service at 8 airports, including Kuala Lumpur, Singapore and Jakarta, where for a fee of approximately USD35 passengers can make use of priority check-in, fast track through security, lounge access, as well as priority boarding and luggage arrival. Additionally, in 2011, AirAsia launched its own frequent flyer program and is also trialling one of the world’s first onboard immigration processes.

Like many LCCs, ancillary revenue is a big cash-generator for AirAsia. In 2010, the airline recorded 18.7 percent of total revenues coming from ancillary sources, making them some of the higher percentages in the LCC space.

Long-haul, low-cost
Launched in November 2007, AirAsia X has been one of the pioneers of the long-haul low-cost concept. The airline, which is owned by several investors – including AirAsia, its founder Tony Fernandes and Richard Branson’s Virgin Group – currently operates a a fleet of 11 Airbus A330s and A340s with 20 A330s and 10 A350-900s on order. In recent years, AirAsia X has opened routes to Europe, Australia, China and India, but over the past year has scaled its network back. Citing high fuel costs and increasing airport charges as two main reasons, AirAsia X has suspended its London, Paris, Christchurch, Abu Dhabi, New Delhi and Mumbai services,  According to AirAsia X CEO Azran Osman-Rani, the airline will refocus on core markets in Asia-Pacific where it has sufficient scale and can be profitable. As part of its renewed focus on the high-growth Asian region, AirAsia X plans to add flights to Japan and open routes to Adelaide, Fukuoka, and Busan.

In terms of the onboard experience, AirAsia X offers angled lie-flat business class seats – a better product than rival long-haul LCC Jetstar’s ‘Premium Economy’-style recliners – and an unbundled long-haul economy product with, among other features, paid catering. The airline also announced it will trial a wireless IFE system in 2012, with some of the content available for free to passengers. The system, provided by Tune Box – which is part of AirAsia’s parent Tune Group – will employ Samsung’s Galaxy Tablets.

At USD41.60 per passenger, AirAsia X boasts the industry’s highest ancillary revenue per passenger. Its latest product is what it calls an ‘empty seat option’, developed for the airline by a company called Optiontown. The empty seat option promises passengers a chance to reserve one or two empty seats next to them for a nominal fee when they sign up and pay a small fee (ranging from USD 10 to 16). AirAsia X will email the status of empty seat(s) availability to the customer between four and 72 hours before flight departure. If empty seat(s) are ultimately booked by other passengers, the fee will be refunded automatically to the customer.

Not only do unused seats generally make the travel experience more comfortable for passengers, but they give the airline an opportunity to generate some revenue on seats that are normally non-productive assets once the airplane doors are closed. The airline estimates earnings of up to USD 1 million in 2012 with its empty seat option.

Social media
AirAsia is also one of the most active airlines on the social web, with an extensive presence across the standard platforms of Twitter (over 350,000 followers) and Facebook (over 1.4 million fans), as well as China’s Sina and RenRen. Social media rating agency Eezeer has consistently rated AirAsia as one of the most actively tweeting airline accounts and perhaps more importantly, one of the most active ‘listeners’ to customer opinions on the social web.

Another big part of AirAsia’s social strategy is the implementation of the industry’s first social CRM platform – called ‘Ask AirAsia’ and accessible via AirAsia’s website and Facebook page – where customer service is provided via live chat, webmail, twitter and intelligent automated responses. The airline recently has closed its telephone-based service channel, redirecting all customers to the Ask AirAsia online channels instead.

AirAsia – MAS equity share swap
In August 2011, AirAsia’s parent Tune Air took the unprecedented move of acquiring 20.5 percent of Malaysia’s national carrier, Malaysia Airlines (MAS) in return for a 10 percent holding in both AirAsia and AirAsia X by Khazanah, Malaysia’s sovereign wealth fund and the majority shareholder of MAS.

The share swap was aimed at helping the carriers compete against multibrand competitors such as Scoot/Tiger Airways/Singapore Airlines and Jetstar/Qantas once the Southeast Asian open-sky policy comes into effect in 2015. Furthermore, many of Malaysia Airlines’ domestic and regional routes would be picked up by AirAsia, while MAS itself will be left to focus on the premium long-haul markets, which would reduce overlap and allow MAS to cut expenses and shore up its balance sheet.

However, the cross-ownership agreement between the two airlines has recently been cancelled because of strong opposition to the deal from the 15,000-member Malaysia Airlines Employees’ Union on concerns about job losses and the dominant influence of AirAsia. Both airlines now plan to collaborate in key operational areas such as ground handling, training and MRO.

Entrepreneurial Tony Fernandes
In addition to founding AirAsia and AirAsia X, AirAsia CEO Tony Fernandes also runs Tune Group, AirAsia’s parent company, which, like Richard Branson’s Virgin Group, has ventured into businesses as diverse as hotels, an online travel agency (Expedia Asia, courier services, a cell phone company (Tune Talk), financial services (Tune Money), entertainment (Tune Tones) and sports (Tune Sports). Fernandes has also been dubbed the ‘Asian equivalent’ of Donald Trump and Sir Alan Sugar, with appearances in the first edition of The Apprentice Asia, which will air later in 2012.

Furthermore, Fernandes is rumoured to be setting up a new premium regional airline, likely to be called Caterham Jet. The name comes from last year’s purchase by Fernandes of British sports car manufacturer Caterham Cars, which has lent its name to a rebrand of Fernandes’ Formula 1 racing team Lotus to Caterham Racing. Caterham Jets – which has yet to be granted an operating licence by the Malaysian government – is expected to fly out of Subang Airport, Kuala Lumpur’s former international airport, which is located considerably closer to the city centre than the current KLIA airport in Sepang.

DATE Last year’s Innovative Airlines ranking awarded All Nippon Airways (ANA) with a second place thanks to its ‘Inspiration of Japan’ cabin and service concept, the opening of a new international terminal at its Tokyo Haneda hub, its business-class only ANA Business Jet service, the MyChoice ancillary revenues program, as well as passenger-friendly amenities such as women-only toilets onboard and sleep support kits on late night departures.

Bold strategic moves
Aiming to fill the void left by the restructuring of Japan Airlines, ANA – which is currently the ninth largest airline in the world by revenues and the largest in Japan by passenger numbers – seeks to become one of the major airlines in Asia. Cornerstones of this ambitious strategy are plans to expand international capacity by 22 percent in the next two years by capitalizing on its new Boeing 787 Dreamliners, of which it will have 20 in operation by March 2013. Furthermore, the airline is targetting new customer segments by launching two low-cost carriers in 2012.

Boeing 787 Dreamliner
The first airline to receive the B787 Dreamliner in September 2011, ANA so far has received the first six aircraft of 55 B787s on order, which it says is key to its expansion in Asia and Europe. The 787 is a twin-aisle airplane that can accommodate up to 250 passengers on flights up to 8,200 miles (15,200 km). As the first large passenger jet to have more than half its structure made of lightweight composite material instead of aluminum, the fuel-efficitnet 787 is the only mid-size airplane capable of long-range routes, making so-called ‘thin routes’ economically viable.

The interior of the 787 Dreamliner provides passengers with a more spacious experience than on other twin-aisle planes, because of a ‘vaulted’ 8-foot ceiling, large windows with electronic shades, while passenger comfort is improved by higher levels of humidity and maintaining air pressure at the equivalent of an altitude of 6,000 feet (1,800 meters) in comparison to 8,000 feet on other aircraft.

ANA’s 787s feature the airline’s ‘Inspiration of Japan’ cabin (launched in early 2011) and have two classes – Business and Economy. The capacity ranges from 158 seats (46 full-flat Sicma Skylounge business seats, 112 Sicma AIRgonomic FX seats in economy) for aircraft flying long-haul routes to 222 (42 Sicma cradle seats in business, 180 economy) on short-haul routes.

On ANA’s long-haul routes the full-flat beds in Business Class are configured in a staggered layout (1-2-1 and 1-1-1) that allows aisle access from every seat. In the Economy cabin, passengers are seated in fixed-shell seats that recline inwards. All classes feature AVOD LCD screens, in-seat power, and USB ports. ANA’s 787s also sport a self-service bar, as well as a Toto ‘washlet’ toilet in each class, which are commonplace in Japanese homes. ANA currently operates its 787s on domestic routes in Japan and in January 2012 deployed the aircraft on its first long-haul service from Tokyo Haneda to Frankfurt, and just launched a new service from Tokyo Narita to Seattle. ANA will deploy its Dreamliners mostly to cities that are served by a limited number of direct long-haul flights, because they don’t have enough demand to support large aircraft. In the second half of 2012, the airline will start services to San Jose in California, while in Europe, ANA has also indicated it plans to start direct service to second-tier airports such as Brussels in April 2013, with Dusseldorf and Barcelona on the radar as well.

Peach, AirAsia Japan
Competition in Japan’s air travel market has long been restricted by a lack of landing slots at major airports, high landing fees and, until deregulation in 2008, restrictions on the amount of discounting allowed. Furthermore, the focus on high service has been used as an excuse for why low-cost carriers (LCC’s) could not gain a standing in the country, which is the third largest aviation market in the world and where market share of LCC’s is less than 10 percent.

As a growing number of South-Korean and Chinese LCC’s – as well as long-haul low-cost carriers such as Jetstar (routes from Australia and Singapore) and AirAsia X (routes from Kuala Lumpur) – are taking advantage of the liberalization of the market in Japan, ANA and Japan Airlines are entering the LCC segment as well. Furthermore, Japan’s extensive high-speed rail network has also made profits for ANA’s domestic operations hard to achieve. To cut costs, ANA in 2010 introduced paid catering (which includes fresh-tapped beer and Starbucks coffee) on domestic flights, but in order to make air travel a a competitive alternative, as well as to attract a new customer segment, ANA has just launched a low-cost operation in Osaka and will launch another low-cost carrier in Tokyo later this year.

Peach
ANA in March 2012 launched a new low-cost subsidiary, called ‘Peach’ – which happens to be an anagram of ‘cheap’ – in partnership with Hong Kong-based First Eastern Investment Group. Peach currently operates flights between Osaka’s Kansai International Airport and Fukuoka, Sapporo, Nagasaki and Kagoshima, with Seoul and Tapei to follow later in 2012. With fares that are some 50 percent lower than those offered by ANA’s mainline operation, Peach aims to stimulate additional demand for air service. Peach’s fleet will consist of 10 A320s by the end of 2012, and the airline aims to carry 6 million passengers annually within 5 years of operation. Operating independently from ANA, Peach has started on a good note: the carrier enjoyed an average load factor in its first month of operation of 83 percent, exceeding its own 75 percent forecast.

Peach’s A320s accommodate 180 passengers and feature leather seats with covers in two colours: purple and black. Peach’s offers a simple two-tiered fare structure: The ‘Happy Peach’ fare includes only the basic seat and one piece of carry-on luggage, while the ‘Happy Peach Plus’ fare includes checked luggage, selection of basic seat, no fees to change flights and reduced cancellation fees. Buy-on-board catering is also available – but no (portable) IFE – and extra-legroom seats can be booked for an additional fee of around USD10. Commenting on the proposition offered by Peach, aviation consultancy CAPA said, “While Peach’s offerings may be underwhelming for those versed in LCC commercial strategy, they will still come as a shock to the Japanese, who have broadly not experienced a home-grown LCC.”

AirAsia Japan
ANA has also teamed up with AirAsia to form AirAsia Japan, a new low-cost carrier that will be based at Tokyo’s Narita International Airport. It will start flights to Fukuoka, Okinawa and Sapporo when commencing operations in August 2012, with international flights to Busan and Seoul to follow in October. AirAsia Japan is counting on AirAsia’s pan-Asian operations and marketing to help it carry 10 million passengers annually within five years. Said Shinichiro Ito, CEO of ANA, “We decided that the fastest way for us to establish a LCC was by utilising AirAsia’s know-how and brand. By combining AirAsia’s business model and brand with ANA’s depth of knowledge of the Japanese market, we aim to bring new value to our customers […] and generate new demand.” Adds AirAsia Japan CEO Kazuyuki Iwakata, “We’re aiming at families who want to enjoy the weekend or people who play Pachinko and we want them to be able to think about taking a flight as easily as they would hop on a bus.” […] “The introduction of low-cost service will give people another option for the weekends.”

AirAsia Japan also plans long-haul services to Thailand, Singapore, Indonesia, Hawaii, Guam, Australia and New Zealand once it introduces A330 widebody aircraft to the fleet from 2013 on. AirAsia CEO Tony Fernandes has also indicated that the AirAsia Japan hub at Narita may serve as a connecting point between Southeast Asia and the United States for AirAsia.

Multibrand strategy
Commenting on the launch of two LCC brands, instead of one, ANA said that it has been seeking opportunities to launch a new low-cost business based at Tokyo Narita and, after analysis, has concluded that partnering with an existing low-cost carrier was the best option. Furthermore, with a population of 20 million, the Kansai region around Osaka is large enough to accommodate another LCC (Peach).

Following its entry into LCC business, ANA will also adopt a new corporate structure by April 2013 to reflect its position as both a full-service airline and a low-cost carrier. ANA, AirAsia Japan and Peach brands will operate under the holding company, which ANA believes is a more optimal organizational structure for building a multi-brand strategy between the existing ANA brand and the new LCC brands.

DATE Last month, airlinetrends.com founder Raymond Kollau gave a keynote presentation at the annual Aircraft Interior Expo in Hamburg. The theme of the presentation was “Welcoming Change and Innovation in the Cabin” and the session highlighted what airlinetrends.com is all about: How airlines are responding to consumer trends with innovative products and service in order to differentiate the passenger experience. The presentation addressed the following topics:

What makes passengers feel good about flying?
Besides providing passengers with more control over their travel experience and getting the basics right – e.g, on-time departure, decent seats, catering and IFE, and a friendly crew that cares – any airline that offers an innovative feature that makes the flight a memorable experience will get the passenger’s sympathy, be it serving local food, offering inflight connectivity or wireless IFE, or letting kids onboard serve pre-flight candies.

What are innovative onboard products and services that show the way how the cabin experience will evolve?
Apart from better cabin and seat comfort – e.g, smart and light designs, mood lighting, improved air quality – one of the major developments today is that passengers are being provided with a more personalized experience. For example, airlines such as Emirates, BA and KLM have equipped their flight attendants with digital devices with access to the latest passenger information – such as personal preferences, prior service issues – so they can offer a more customized service.

The combination of passengers wanting a more tailored experience and the need for airlines to increase their ancillary revenues, is also leading to a decline of traditional cabin classes, especially on short-haul flights. A good example is Air New Zealand, who decided to turn its narrowbody aircraft into a single-class configuration and offer four options of service instead – ranging from the option to just take a bag in the cabin to the ‘full works’ with catering and inflight entertainment.

What can aviation learn from other business sectors?
Customer expectations are fuelled not only by how well a company performs versus its competitors, but are also shaped by standards set by other industries. Innovative products and services in one industry raise the bar for all industries, as every industry has its own ‘innovation competence’, whether it’s Starbucks’ understanding of indulgence, Apple’s prowess in design and usability, or luxury hotels’ mastering of hospitality.

Besides learning from these industries, airlines are also teaming up with successful companies from other sectors to design elements of the passenger experience, a practice dubbed ‘branded brands’. Examples include Nespresso coffee served in First Class on SWISS or Sennheiser headphones available in Air France’s premium cabins, while Korean Airlines has teamed up with respectively L’Oréal and Absolut Vodka to design the onboard duty free store and onboard bars on its A380s.

The full presentation, which includes 50 examples of how airlines are responding to consumer trends with innovative services, can be viewed and downloaded here.

You may also like the following two related articles that airlinetrends.com published in cooperation with the Airline Passenger Experience Association (APEX):
- “Exceeding Expectations: Trends that are shaping the passenger experience” (pdf)
- “Airlines are teaming up with popular brands to improve the passenger experience”

DATE Having been one of the most glamorous airlines around for many years, as it challenged the dominance of UK’s flag carrier British Airways, Virgin Atlantic has seen its onboard experience slip somewhat in recent years. With the arrival of new aircraft – Virgin will take delivery of seven A330-300s during 2012 as part of a GBP 2.2 billion aircraft investment program – the airline has just unveiled its new ‘Dream Suite’ business class, which it promotes as “a first class experience for a business class fare.”

Competition
Virgin Atlantic’s new Upper Class ‘Dream Suite’ made its debut on April 21 on the airline’s London to New York JFK morning flight. Virgin Atlantic has invested GBP 100 million in its new business class product as the long haul-only carrier looks to increase its share of the business traveller market. “Fifty percent of our business is across the North Atlantic and the London-New York route is highly competitive because BA and AA have joined together,” Greg Dawson, a Virgin Atlantic spokesman, told Bloomberg earlier this year. “Whilst we’ve maintained our market share quite well, we want to keep innovating because our clear point of difference is product.”

The onboard enhancements to the initial New York service are supported by a refurbished Manhattan-themed Clubhouse at JFK Airport, which opened on March 5.

‘Upper Class Dream Suite’
Virgin Atlantic’s new Upper Class ‘Dream Suite’ is described by Australian Business Traveller as “a stylish evolution of the current design. It ditches Virgin’s trademark purple leather seat for darker chocolate-black tones accented by wooden veneer and brushed metal,” while Virgin summarizes the new interior as follows, “The cabin has a fabulous new look, with a stylish, uplifting interior, flashes of our famous red, and Swarovski crystal accents for that touch of Virgin Atlantic sparkle.” The new Dream Suite is more spacious than Virgin’s current Upper Class design and offers an extra 3.8cm of seat’s width while folding out to a massive 218cm long lie-flat be, which Virgin says is the longest offered by any airline. Other new features include a ‘literature pocket’ for stowing books and magazines plus a flexible LED reading lamp which snakes down from the top of the divider wall (images here and here).

Staggered herringbone layout
Compared to the current 1-1-1 layout on Virgin Atlantic’s A340s, the 33 ‘Dream Suite’ seats on the A330s are arranged in a mostly 1-2-1 layout adopting a so-called ‘staggered herringbone’ layout. APEX reports that Virgin Atlantic has patented this new layout which allows the carrier to increase density and grow revenue. Whereas traditional herringbone patterns form a “V” shape in the centre part of the cabin, Virgin has come up with a staggered, cross-hatch version. The effect is that the seats do not jut out as much into the aisle, creating room for an additional seat per row, which allows Virgin to fit two seats in the centre row on its Airbus widebodies. A perspex divider between the seats seeks the provide a balance between privacy for each passenger and keeping the cabin feeling airy and open. The design can also be used on the Boeing 787 Dreamliner, of which Virgin has 15 on order. See this image for a comparison of the old and the new configuration.

Sleep
In developing its new Upper Class products, Virgin Atlantic recruited 1,200 frequent fliers who partipated in workshops and tested the concepts – with some even trying out the beds with an overnight stay in the airline’s test facility. And in order to offer passengers the best night’s sleep, one of the airline’s service training instructors has taken on the role of ‘whisper coach’ to help Virgin crew learn to talk with passengers at between 20 and 30 decibels – around half that of a normal spoken conversation on the ground – to ensure crew avoid disturbing sleeping passengers during night flights.

It is unknown whether Virgin Atlantic will offer its ‘Snooze Zone’ on the new A330s. On its A340 and B747-400 aircraft, the airline has reserved the first rows in Upper Class for passengers who want to sleep uninterupted. On flights departing in the evening, passengers can opt to have dinner at the lounge before they board and head straight for the snooze zone to go to sleep.

Catering, onboard bar
Virgin Atlantic earlier this year also introduced a new Upper Class menu, which includes a customizable English breakfast, a cheese trolley service on daytime flights, as well as an afternoon tea trolley where passengers can fill up their own mini cake stand with a choice of finger sandwiches, cakes and scones. Passengers can also opt for an ‘express supper menu’ with a lighter meal and quicker service so they can get back to work (or movies, or sleeping).

Just like on Virgin Atlantic’s other aircraft, the A330 Upper Class also features an onboard bar. Stretching 2.5 metres and accommodating up to eight people, the bar has been placed in an angled position while a large shell separates it from the cabin.

JAM
The new A330s feature Virgin Atlantic’s new JAM in-flight entertainment system (supplied by Panasonic) in all cabins. In Premium Economy and Business, a touchscreen handset  allows passengers to multitask – such as following the flight map on the handset while watching a movie on the main screen at the same time. The A330s are also fitted with Panasonic/AeroMobile’s eXphone system, so passengers can use  their mobile phones for voice calls, text messages and emails.

DATE Last year we covered a new in-flight entertainment concept called TrayVu, developed by Seattle-based Skycast Solutions. The initial design of the TrayVu, launched in October 2011, combined the meal tray and the IFE system into one, while a hole cut in the tray allowed the display to still be viewed when the tray table is put in an upright position.

TrayVu Slim
Canadian low-cost airline WestJet has now become the first carrier to install the TrayVu IFE system on its new B737-800, albeit in a somewhat modified design. Instead of being fully integrated into the tray table, the so-called TrayVu ‘Slim’ system can be clipped onto the back edge of the seat back tray so that the tray surface remains free for food and beverages.

For the WestJet programme, SkyCast has customized Samsung 8.9-inch Galaxy Tabs, combining the Android operating system with Skycast’s content-management software (which offers full DRM-protection) and a WestJet-branded interface. The TrayVu shell also has a safety seal over the USB connection point. APEX reports that SkyCast emphasized that it is not wedded to the Samsung Galaxy tablet for future TrayVu programmes, as it is “device agnostic.”

Starting in June the TrayVu Slim IFE tablets will be deployed on WestJet’s two new Boeing 737-800 aircraft, with the tablets coming to another two WestJet 737s by the end of 2012. WestJet currently offers live TV on its fleet of 737 jets, but Greg Latimer, Skycast’s chief marketing officer, said the airline has taken its latest 737-800 direct from Boeing without any IFE system and intends to offer the TrayVu tablets, 68 of which will be available on each aircraft.

Skycast has not yet settled on a rental fee for the tablet, but says that it will be in the region of CAD10 to 15. SkyCast’s Latimer reckons that although as many as 85 to 90 percent of passengers could bring their own iPad, Kindle or some other portable electronic device aboard longer flights in the future, Skycast hopes that the so-called early window content – latest release movies and TV shows — available on the TrayVu will persuade many of those passengers to rent a portable device. WestJet says it will evaluate the success of the TrayVu Slim portable IFE programme, and based on the results, will decide on possible expansion.

Tablets as IFE
The TrayVu is another example of how airlines are increasingly looking at consumer tablets as an alternative for traditional IFE systems. For example, LCC’s such as Jetstar, airBaltic and Iceland Express currently rent out Apple iPads to passengers, while full-service airlines such as American Airlines (Galaxy Tabs in premium cabins) and Qantas (trialling iPads as wireless IFE) provide passengers with handheld tablets for free. For more, see our article “11 ways airlines are deploying the Apple iPad.”

DATE Catering to increasingly sophisticated passengers who want to try something new besides the generic soda and alcohol brands available onboard, a growing number of airlines serve local niche beverages inflight, which adds an authentic element to the experience and supports the local economy as well.

Virgin America, Porter, Alaska AIrlines
Especially, small to medium-sized airlines in North America offer local microbrews onboard, as they are more rooted in local communities, while their relatively small scale allows local breweries to guarantee supply.

For example, Virgin America offers local beers from micro breweries such as Gordon Biersch, Black Star and Blue Moon, as well as Californian wines and premium spirits, for sale through its touch screen IFE ordering system. Passengers onboard Alaska Airlines’ subsidiary Horizon Air can choose from a selection of free wines and microbrews from the Pacific Northwest. And emphasizing its Toronto roots, Canadian boutique airline Porter Airlines serves complimentary beer from the local ‘Steam Whistle Brewing Company’, whose brewery is located less than two kilometres from Porter’s base at Toronto’s City Centre Airport.

Frontier Airlines
The latest airline to ‘tap’ into the local beverage trend is Denver, Colorado-based Frontier Airlines. Combining two popular trends – local catering and social media – Frontier has just launched a Facebook campaign in which it asks the public to vote for their favourite local beer to be served onboard Frontier’s flights. In the airline’s words: “What’s on tap? You tell us. We’re having you – our fans and passengers – choose which local Colorado beer to feature onboard each month as part of our rotating tap. This month choose between Dale’s Pale Ale, Upslope Pale Ale, Colorado Native, or Crabtree Oatmeal Stout. Voting ends May 15 and the winning Colorado brew will be featured onboard starting June 1.”

DATE Airline passengers travelling with children or passengers carrying large-sized sports equipment such as golf bags, bikes and surf boards are the target audience of a new equipment rental service at Lisbon Airport.

Launched by airport operator ANA Aeroportos de Portugal, in partnership with Portuguese babyseat rental company ‘Baby on Board’, the service is called ‘Rent-a-stuff’ and rents out equipment ranging from golf clubs and bags, bicycles and surf boards to baby strollers, infant car seats, bikes, scooters, GPS devices and tablet computers. With its ‘Don’t carry it, rent it’ slogan, the service encourages passengers to travel without the discomfort of transporting large heavy objects.

The equipment can be rented directly from the Rent-a-stuff counter located in the arrivals hall at Lisbon Airport or can be reserved online in advance. Equipment can also be delivered to a hotel or address provided by the customer. Aeroportos de Portugal says it is planning to extend the service to Porta and Faro airports, while ‘Baby on Board’ has also teamed up with car rental agency Avis in Portugal and the UK (London Heathrow) to rent infant car seats to Avis customers.

DATE Aiming to provide business travellers with an easy transfer to and from the airport, Amsterdam’s Schiphol Airport has aunched the Schiphol Business Taxi, a luxury taxi service designed to help business travellers start or end their journey in business class style. Besides petrol-powered vehicles, the new taxi service also offers a green, electric option, the so-called ‘Electric Business Taxi’.

Electric taxi
The Schiphol ‘Electric Business Taxi’ is 100 percent powered by electricity and can cover a radius of around 100 kilometers. This makes it suited to short distances, such as journeys between Schiphol and central Amsterdam or the Amsterdam Zuidas business district. Taxi drivers receive a short training to learn to reduce speed by using the engine, instead of the brakes, in order to generate as much energy as possible and maximise the radius. The electric taxis also offer wi-fi connectivity, which eventually will be rolled out to all Schiphol Business Taxis as well.

The business taxi service can be reserved up to four hours ahead of departure, and passengers can be picked up at (or transported to) anywhere in the Netherlands. Rates for a transfer for one person with luggage are EUR42 into the business district, EUR58 to the centre of Amsterdam and EUR124 o central Rotterdam. Extra services such as an escort to and from the gate and check-in assistance are also offered. The service is offered by a joint venture between Schiphol and Connexxion, the largest public transport company in the Netherlands.

Better Place
There are currently 2 electric Renault Fluence Z.E. (zero emission) taxis in operation and another 4 vehicles will be added this June. The Renault Fluence Z.E. cars are the result of a partnership between Schiphol Airport, the City of Amsterdam and Better Place, a company that provides what it calls “electric car networks,” a network of battery switch stations combined with the supply of batteries that power the electric cars.

Better Place in early March announced it will open its first battery switch station in the Netherlands at Schiphol Airport. The station, which is set to be completed this summer, will initially serve 10 Renault Fluence Z.E. taxis, operated by Connexion as well as two other taxi companies, TCA and Bios. When the  batteries of the electric cars are depleted taxi drivers pull into the switch station and a fully-automated process switches their empty battery with a full one in five minutes, about the same amount of time it takes to fill a tank with petrol.

DATE To celebrate its sponsorship of the New Zealand PGA Pro-Am Championship, Air New Zealand (ANZ) has recently organized a world first in in-flight entertainment: A ‘30,000ft In-Flight Putting Challenge’. From 22 March untill 26 March, passengers on ANZ selected flights between Auckland and Queenstown were given the chance to “putt for prizes.”

Always looking for an innovative campaign that makes headlines, ANZ has turned the aisle of its so-called ‘All Blacks’ A320 aircraft (painted black in honor of its sponsorship of New Zealand rugby) into a putting green at 30,000 feet.

Four passengers on each flight could compete for prizes, and to participate passengers had to fill out an entry form in the departure gate lounge and drop it in an entry box located at the gate prior to departure. If ANZ’s cabin crew drew their name they were invited to participate on board.

On the Air New Zealand blog, an inflight leaderboard showed the top putters of each flight. The overall winner was announced on March 27th and received a VIP trip for two to watch the final day of the pro-am championship, including flights, accommodation and a new set of Callaway RAZR clubs.

According to ANZ’s sponsorship manager James Gibson, the quirky competition was a great way to show the airline’s support for the championship. “At Air New Zealand we’re crazy about rugby on the outside of our planes and we’re crazy about golf on the inside. This world-first for entertainment onboard is sure to show off some skills and provide a few thrills for passengers travelling on the all black A320 over the next few days.” Video of the campaign here.

DATE Airlines are increasingly organizing onboard events for passengers flying on festive days such as Christmas Day, Valentines Day or national holidays. These kind of experiental initiatives resonate with passengers as they give an extra dimension to their flight, and if the airline really makes an effort, the news will spread fast via social media, providing the airline with some relevant exposure.

Spanair, Qantas, Delta
For example, (now defunct) in the week before Christmas, Spanair surprised children flying on the Barcelona – La Coruña route with Christmas presents at 10,700 meters altitude. A Spanair flight attendant announced that Santa Claus himself just flew by and left some presents. Each kid’s name was then called and a personal remark (submitted by parents earlier) was made how he or she had behaved during the year before receiving a present (video here). In Australia, Qantas surprised 500 passengers travelling on Christmas Day with free gifts in Sydney, Melbourne, Brisbane and Perth. As passengers were waiting for their luggage to arrive, the airline placed gifts tagged with the passenger’s name on the luggage carousel (video here).

On a similar note, on Valentine’s Day, Delta Air Lines worked with Akron-Canton Airport in Ohio, USA to deliver individually-labeled red gift bags with boxes of chocolate for every passenger on flight DL5256 via the baggage claim belt (video here). Southwest, meanwhile, offers passengers a free drink of their choice on special ocassions such as Mother’s Day, Father’s Day, St Patrick’s Day, as well as the airline’s ‘birthday’ on June 18.

airBaltic
The latest airline to engage passengers with an ‘act of kindness’ is Latvian-based airBaltic, which surprised passengers travelling on Easter Sunday (April 8th 2012) by hiding Easter eggs containing gifts onboard its flights. Up to five flat paper eggs were hidden inside each aircraft, to be exchanged for prizes for passengers who found them. All in all 450 prizes, containing gifts such as an airBalticBag, airBaltic Shoe, romantic weekend vouchers at hotels in Riga, Scandinavia, Europe and Russia, where hidden inside seat pockets, inflight magazines, overhead bins, behind folded tray tables, or underneath seats. Each passenger was also given chocolate eggs by airBaltic staff dressed as Easter bunnies as they entered the gate to the aircraft.

SAS
Another Nordic airline, Scandinavian Airlines, surprised passengers with candy-filled Easter eggs at the gate, onboard the planes and on the baggage belt during the Easter holiday season. Eight hundred large Easter eggs were handed out to passengers and the airline also attached 2,500 labels with an Easter greeting to baggage arriving on the luggage belt (images and video).

The Easter surprise was sponsored by SAS’ IT supplier Snowfall in order to demonstrate the importance of a good ground handling service as part of the travel experience, as well as to increase the involvement and job satisfaction of SAS employees.

Thanks to Christian Kamhaug and Michael Mednis for alerting airlinetrends.com on the SAS and Qantas initiatives.

DATE A growing number of airlines are launching dedicated services and products aimed at improving the flight experience for families with children. From the previously discussed ‘Happy Mom’ initiative by Asiana and the ‘Sky Nanny’ by Gulf Air to kid-friendly tray table covers, these kinds of initiatives may be welcomed not just by parents and children, but also by other passengers who also benefit from initiatives that keep the youngest passengers entertained. Passenger complaints about sitting near children are a recurrent issue in flying.

One airline that has been very creative in keeping the kids busy in-flight as well engaging children in the world of aviation, is Brazilian airline TAM.

TAM Kids
Together with educational advisors, TAM developed the TAM Kids program which consists of three main elements: A TAM Kids website where children can play games, get to know characters from the TAM Kids Team and learn about the history of aviation, the experience on board the aircraft, and a ‘kids room’ at the TAM museum that includes aviation-related toys, games and attractions, including flight simulators and a hangar and control tower replica.

Onboard experience
With parental consent, children up to 12 years of age can also sign up for TAM Kids and receive an official ‘Comandante Kid’ badge. On-board, children with ‘Comandante Kid’ badges are invited to help the crew by welcoming passengers on the flight’s PA system, distributing candies before the flight takes off (videos here and here), and visiting the cockpit after the aircraft has landed. In addition, TAM provides the children with the TAM Kids magazine, kid-friendly meals, and on international flights, IFE channels with movies and music for children.

DATE Aéroports de Paris, which operates Paris Charles de Gaulle and Paris Orly airports, has dveloped a reputation when it comes to establishing innovative partnerships with well-known brands in order to enhance the airport experience. Following earlier initiatives with Sony (free Playstation ‘poles’), Sony (free mini HD-cinema), Gulli (branded play areas) and Samsung (music pods), the airport has now teamed up with Philips to develop light therapy pods, which passengers can use for free.

Luminotherapy
Last month, Paris Charles de Gaulle installed three so-called ‘luminotherapy spaces’ at the airport’s Terminal 2E. Passengers can use the pod 15-minutes for free to fight their jet lag or combat the winter blues, caused by a lack of ultra-violet light during the winter. The cocoons are equipped with Philips GoLiTE BLU lamps in different colors, a relaxing leather chair, and passengers can watch a didactic video that shows the benefits of luminothérapie. Aéroports de Paris operator says it wil decide whether to expand the service to other terminals at the airport based on feedback of passengers using the pods.

At the end of 2007, Aéroports de Paris and Philips also partnered for a limited time to offer a similar service during the winter season, while Philips has teamed with Westin Hotels & Resorts to offer guests at The Westin Chicago River North a stay in a specially designed Concept Room aimed at helping guests combat sleep troubles and jet lag.

Finnair light-emitting headsets
Meanwhile, Finnair just announced it will offer premium passengers on flights between Helsinki and Shanghai the ability to try out a “bright light headset” said to help passengers adapt to jet lag by channeling bright light into the brain via the ear canal. The bright light headsets, developed by Finish company Valkee, will be available free of charge to business class passengers during the month of April, before going on sale in-flight in May 2012.

According to the carrier, “Bright light headset simulates the effects of daylight by channeling bright light through the ear canal to very close proximity of the tissue in need of treatment, in the brain.” Passengers wishing to take part in the trial will be asked to fill in a feedback questionnaire after use. Crew will advise passengers on the best use of the headsets – for instance on an eastbound flight from Helsinki to Shanghai Finnair says the device should be used about an hour before landing, assuming an early morning arrival in the city.

“Introducing the Valkee bright light headset is one way of adding interesting experiences onboard Finnair flights,” Finnair vice president Jarkko Konttinen said. “Finnair is an innovative airline and we actively look for new ways to improve the wellbeing and comfort of our passengers,” he added.

DATE As people are bombarded with marketing messages, real-life interaction with products and brands (a.k.a. experiential marketing) has become increasingly valuable for airlines to get their message across. We reported earlier on Southwest Airlines’ ‘porches’ in New York and Denver, Delta Air Lines’ ‘SKY360 lounges’ at sports venues, and film and culinary festivals in the U.S, while Air France last year toured Manhattan, New York, for 5 days with a ‘Gourmet Food Truck’, serving free food samples based on the recipes of Air France’s Michelin-starred chef Joël Robuchon.

Flight BA2012
The latest airline to join the ‘brand space’ trend is British Airways (BA), who will launch an airline themed pop-up venue – called ‘Flight BA2012’ – in the run up to the London 2012 Olympic and Paralympic Games.  Open on select weekdays from April 4 to 17, the three-in-one art gallery, cinema and dining lounge will showcase the works of the winners of BA’s Great Britons co-creation campaign before they are rolled out on flights from April. Bookings can be made from March 19 on at facebook.com/britishairways.

‘Flight BA2012’ will be located at 3-10 Shoreditch High Street in East London, and will offer guests a three-in-one dining, cinema and art experience. For GBP50 visitors will get entry to the gallery and screening room, receive a welcome glass of champagne, a sit down three-course meal with amuse bouche, and tea, coffee and petit four.

The temporary venue will feature artwork from artist-designer Pascal Anson from Brighton, who was mentored by artist Tracey Emin on his ‘Dove’ design which will will appear on selected BA aircraft.  The short film ‘BOY’ (trailer here), written by screenwriter Prasanna Purwanarajah under the mentorship of actor Richard E Grant and to be shown on BA flights, will be screened in the ‘Flight BA2012’ cinema. Guests will also be able to sample a bold British menu created by Michelin-star chef Simon Hulstone, who under the guidance of Heston Blumenthal, has produced a menu from the airline’s menus dating back to 1948 – the last time the Games were held in London (more details of the menu here). Hulstone’s menu will be served in-flight on BA long-haul services departing London Heathrow between July and September.

DATE Besides teaming up with electronic brands such as Apple, Samsung (tablets) and Bose (noise-cancelling headphones) in order to provide passengers with a better in-flight experience, a number of airlines also partnered with well-known coffee brands to give passengers their favourite cup of coffee up in the air. Examples include Starbucks coffee served on board flights by Alaska Airlines and Porter Airlines, Dunkin’ Donuts coffee on Jetblue, and freshly brewed cup of Nespresso for passengers in First Class on SWISS’ flights. Iberia, meanwhile, has sold sandwiches from Spanish chain Fast Good (co-owned by star chef Ferran Adria) as part of its paid catering offer. Now Japan Airlines (JAL) has come up with an innovative twist for its onboard menu by teaming up with well-know Japanese fast-food chains.

Air Yoshinoya
Japan Airlines has partnered with Yoshinoya – the largest chain of beef-bowl restaurants in Japan – to bring the chain’ trademark dish to passengers on select international flights. The campaign started on March 1^st, 2012 and for three months passengers on JAL flights from Tokyo Narita to New York, Chicago, Los Angeles, London and Frankfurt in every cabin class are served an ”Air Yoshinoya box” – the JAL version of the establishment’s specialty beef-bowl.

Specially designed and packaged to be served onboard, the rice and beef have been placed in separate boxes, letting passengers put their own meals together just before they eat. Considering the lower humidity in the cabin, Air Yoshinoya also comes with more sauce so that customers taste the same succulence as the beef bowl served in shops, while the beef, ginger, shichimi (seven-flavored spice) and pickles served are just as customers would find in all Yoshinoya outlets in Japan.

‘Air Yoshinoya’ is offered in economy and premium economy as a second meal and as an à la carte option in the premium cabins. According to JAL. the in-flight meals were created to give travelers a taste of Yoshinoya restaurants, saying that “With Air Yoshinoya, customers will be delighted at the familiar taste of the well-loved beef bowl at several thousand meters in the air.” JAL expects to serve 75,000 meals during the three months of the offer.

Air Mos Burger
The partnership with Yoshinoya is not JAL’s first collaboration with a Japanese fast-food chain. In 2011, the carrier teamed up with Mos Burger – Japan’s homegrown answer to McDonald’s – to offer the chain’s ‘famous’ teriyaki burger in-flight, for three months. Called “Air Mos Burger,” the teriyaki burger was offered on the same five international JAL flights as this year’s campaign with Yoshinoya.

To avoid that the bun’s texture getting ruined by contact with the meat when heated, two non-stick sheets were placed on either side of the beef patty. Assembly was up to the passengers, who could check a bilingual instruction sheet. More images here, here, and here.