Alaska Airlines-Virgin America merger tests what fliers really want
Does the experience in the air matter most to fliers, or is what airlines do on the ground most important to a good trip? If Alaska Airlines wins government approval to complete its proposed $2.6b acquisition of Virgin America, two very different approaches to air travel will be merged. What comes next amounts to a referendum on what travellers value most these days and which amenities they are willing to pay for. Travellers pick airlines based primarily on price, price, price, schedule and frequent-flier loyalty. But all airlines face choices on which amenities they need to offer to stay competitive. “This is a once-in-a-career opportunity to look under the hoods of two different models and figure out what’s best,” Alaska chief executive Brad Tilden says. Alaska says it can’t afford to adopt everything Virgin America does and still keep costs low. But it doesn’t want to wipe out Virgin America’s panache, either. Alaska has invested in technology that creates efficiency on the ground, such as a 20-minute baggage delivery guarantee. It is pioneering print-at-home baggage tags. Alaska pilots were the first to get iPads instead of paper charts in the cockpit and have been early adopters of satellite navigation. It has a loyal Pacific Northwest following because of its friendly human interaction and reliable flights. Flight attendants still invite children into the cockpit during boarding and aren’t stingy with the beverage and food carts. Loyalists from Alaska and Virgin America each hope their airline’s style will win out in this marriage.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-05-05/unaligned/alaska-airlines-virgin-america-merger-tests-what-fliers-really-want
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Alaska Airlines-Virgin America merger tests what fliers really want
Does the experience in the air matter most to fliers, or is what airlines do on the ground most important to a good trip? If Alaska Airlines wins government approval to complete its proposed $2.6b acquisition of Virgin America, two very different approaches to air travel will be merged. What comes next amounts to a referendum on what travellers value most these days and which amenities they are willing to pay for. Travellers pick airlines based primarily on price, price, price, schedule and frequent-flier loyalty. But all airlines face choices on which amenities they need to offer to stay competitive. “This is a once-in-a-career opportunity to look under the hoods of two different models and figure out what’s best,” Alaska chief executive Brad Tilden says. Alaska says it can’t afford to adopt everything Virgin America does and still keep costs low. But it doesn’t want to wipe out Virgin America’s panache, either. Alaska has invested in technology that creates efficiency on the ground, such as a 20-minute baggage delivery guarantee. It is pioneering print-at-home baggage tags. Alaska pilots were the first to get iPads instead of paper charts in the cockpit and have been early adopters of satellite navigation. It has a loyal Pacific Northwest following because of its friendly human interaction and reliable flights. Flight attendants still invite children into the cockpit during boarding and aren’t stingy with the beverage and food carts. Loyalists from Alaska and Virgin America each hope their airline’s style will win out in this marriage.<br/>