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Possible Revenue Source For Airlines?  
User currently offlinePhoenix9 From Canada, joined Aug 2007, 2546 posts, RR: 8
Posted (6 years 5 months 2 weeks 17 hours ago) and read 3695 times:

Let me put on my flame suit before I get to the topic   

With struggling carriers...could they come up with something like a "sponsored" flight e.g. Welcome to flight XXXX , this flight is sponsored by COMPANY A for our passengers' comfort. Please enjoy your flight to XXXXXXX.

The sponsorship could include:

- 20-30 % of the fuel required for that flight
- Sponsor crew salary for that particular flight
- anything to defray costs to the airline

It might not be huge but it might help the struggling airline on a particular route.

In return, use company's products as items for sale onboard, company branded onboard food items etc etc. provide memorebilia e.g. company labelled pens etc.

Airlines can start with non-profitable routes and then start from there....

Thoughts?

[Edited 2008-07-06 19:54:13]


Life only makes sense when you look at it backwards.
41 replies: All unread, showing first 25:
 
User currently offlineBoston92 From United States of America, joined Aug 2006, 3390 posts, RR: 7
Reply 1, posted (6 years 5 months 2 weeks 16 hours ago) and read 3636 times:

This will work until Southwest pays United to say this on every flight:

This flight is sponsored by Southwest Airlines, whose fares are much lower than the one you paid today. You also get free checked baggage and even a bag of peanuts. Have a nice flight!



"Why does a slight tax increase cost you $200 and a substantial tax cut save you 30 cents?"
User currently offlinePhoenix9 From Canada, joined Aug 2007, 2546 posts, RR: 8
Reply 2, posted (6 years 5 months 2 weeks 16 hours ago) and read 3630 times:



Quoting Boston92 (Reply 1):
This will work until Southwest pays United to say this on every flight:

I was refering to more of the outside sponsors eg. McDonalds, Starbucks, Lego etc etc.



Life only makes sense when you look at it backwards.
User currently offlineLambert747 From , joined Dec 1969, posts, RR:
Reply 3, posted (6 years 5 months 2 weeks 16 hours ago) and read 3622 times:



Quoting Phoenix9 (Reply 2):
I was refering to more of the outside sponsors eg. McDonalds, Starbucks, Lego etc etc

Businesses in the USA cannot in general afford to sponsor airlines.

If people dont know about Starbucks and McDonalds by now.. it would be shocking..


User currently offlinePhoenix9 From Canada, joined Aug 2007, 2546 posts, RR: 8
Reply 4, posted (6 years 5 months 2 weeks 16 hours ago) and read 3606 times:



Quoting Lambert747 (Reply 3):
If people dont know about Starbucks and McDonalds by now.. it would be shockin

Of course they know....but you still see ads on TV all the time. I see it as a good promotional oppurtunity



Life only makes sense when you look at it backwards.
User currently offlinePPVRA From Brazil, joined Nov 2004, 8974 posts, RR: 39
Reply 5, posted (6 years 5 months 2 weeks 16 hours ago) and read 3585 times:



Ok, maybe too far. . .



"If goods do not cross borders, soldiers will" - Frederic Bastiat
User currently offlineElBandGeek From United States of America, joined Jun 2008, 759 posts, RR: 0
Reply 6, posted (6 years 5 months 2 weeks 16 hours ago) and read 3563 times:



Quoting PPVRA (Reply 5):
Ok, maybe too far. . .

no worse than a city bus


User currently offlineQwame From United States of America, joined Aug 2006, 129 posts, RR: 0
Reply 7, posted (6 years 5 months 2 weeks 16 hours ago) and read 3563 times:

I think it will be a good idea for airlines to advertise products in the bathroom, on overhead bins (like the pic PPVRA put up) and on seatback. It will increase these revenue for sure. I think they should only do it in coach though.

User currently offlineEA CO AS From United States of America, joined Nov 2001, 13736 posts, RR: 61
Reply 8, posted (6 years 5 months 2 weeks 16 hours ago) and read 3522 times:
Support Airliners.net - become a First Class Member!



Quoting Qwame (Reply 7):
I think it will be a good idea for airlines to advertise products in the bathroom, on overhead bins (like the pic PPVRA put up) and on seatback. It will increase these revenue for sure. I think they should only do it in coach though.

Wasn't this idea already tried - without too much success, from what I recall - at America West Airlines, advertising on tray tables before the merger with US Airways?



"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan
User currently offlineMastermis From Cayman Islands, joined Apr 2008, 147 posts, RR: 0
Reply 9, posted (6 years 5 months 2 weeks 16 hours ago) and read 3522 times:

How about company logo's on the plane's belly, such as what Emirates does on some (all?) of its aircraft with their own logo?



Big version: Width: 800 Height: 600 File size: 32kb


User currently offlineNYC2theworld From United States of America, joined Mar 2007, 666 posts, RR: 0
Reply 10, posted (6 years 5 months 2 weeks 14 hours ago) and read 3422 times:

Having your operations "sponsored" by another party just to pay the bills does not promote investor confidence. Most items that have sponsors (stadiums, mass transit systems, museums, libraries, science centers, etc) are non-profit organizations that are there for the greater good of a community (an can be written off as a donation for tax purposes) or in the case of stadiums are owned by a few small investors where the name mention (ticket stubs, radio stations, etc.) is worth the investment and shows a company supports the community it has major ties to.

Having lets say Boeing sponsor an ORD-SEA flight, Disney sponsor a LAX-MCO flight or whatever doesn't provide any extra benefit to the sponsoring company. Now maybe McDonalds having the exclusive right to do BOB on an airline and splitting the revenue with the airline might be an idea. First class amenity kits/bathroom soaps sponsored by Aveda...I think things like that where it gets the product into the customer's hands would be a good idea.



Always wonderers if this "last and final boarding call" is in fact THE last and final boarding call.
User currently offlineAirNZ From , joined Dec 1969, posts, RR:
Reply 11, posted (6 years 5 months 2 weeks 3 hours ago) and read 3247 times:



Quoting Qwame (Reply 7):
I think they should only do it in coach though.

Why's that? Do you somehow consider 'Business' pax to be superior and above anyone else?


User currently offlineEnginebird From United States of America, joined May 2007, 344 posts, RR: 0
Reply 12, posted (6 years 5 months 2 weeks 3 hours ago) and read 3213 times:



Quoting AirNZ (Reply 11):
Quoting Qwame (Reply 7):
I think they should only do it in coach though.

Why's that? Do you somehow consider 'Business' pax to be superior and above anyone else?

AND, how would you explain the sponsors that the better-off third of passengers on the plane does not get to see the ad for their product? Wouldn't sponsors be particularly interested in targetting business class passengers.


User currently offlineTonystan From Ireland, joined Jan 2006, 1447 posts, RR: 2
Reply 13, posted (6 years 5 months 2 weeks 3 hours ago) and read 3200 times:

Your name is Michael O'Leary is it??? LOL


My views are my own and do not reflect any other person or organisation.
User currently offlineRampart From United States of America, joined Aug 2005, 3156 posts, RR: 6
Reply 14, posted (6 years 5 months 2 weeks 2 hours ago) and read 3146 times:



Quoting NYC2theworld (Reply 10):
Having your operations "sponsored" by another party just to pay the bills does not promote investor confidence. Most items that have sponsors (stadiums, mass transit systems, museums, libraries, science centers, etc) are non-profit organizations that are there for the greater good of a community (an can be written off as a donation for tax purposes) or in the case of stadiums are owned by a few small investors where the name mention (ticket stubs, radio stations, etc.) is worth the investment and shows a company supports the community it has major ties to.

I don't think it's as altruistic as you think. We have the oddest named stadiums now and recently -- Monster Park, Quest Field, Bank One Ballpark, RCA Dome. Here in NJ, Continental Airlines Arena is now the Izod Center ( ! ). These companies' interest in community support is superficial at best, and most cases it just goes to the highest bidder. That said, while library, museum, and sports fans think this sort of thing is ridiculous, I don't think we question the investor confidence. So, is it possible for an airline? Sure, why not. We already accept logojets. (Works for Ryan Air, didn't turn the corner for Western Pacific.) We've seen Shamu, Disney, and Pokemon on some pretty respectable airlines for decades now.

-Rampart


User currently offlineRFields5421 From United States of America, joined Jul 2007, 7607 posts, RR: 32
Reply 15, posted (6 years 5 months 2 weeks 2 hours ago) and read 3111 times:

I don't think the cost vs return would work for individual flights.

In flight ad placements - those will come, and be in Business Class and First Class because those are the people with the money to spend.

But as far as individual flights, if a company is interested in trying to capture part of that audience, repaint an entire aircraft is probably cheaper and a much better return over the next year or so.

Of course, after the first logo jet crashes - those will disappear quickly.


User currently offlineMax550 From United States of America, joined Nov 2007, 1166 posts, RR: 0
Reply 16, posted (6 years 5 months 2 weeks ago) and read 3048 times:



Quoting Phoenix9 (Thread starter):
In return, use company's products as items for sale onboard, company branded onboard food items etc etc. provide memorebilia e.g. company labelled pens etc.

The problem I see here is that unless a whole airline is sponsored by the same company each airport would have to have supplies of whatever the particular sponsor wants on their sponsored flights.
Also, as far as food and drinks, I doubt companies would want to give up the control they have over them in their own stores. They want to be able to control quality.
There is also an issue of how much to carry onboard. Weight is so important now that airlines don't want to carry anything extra. What happens when your McDonalds sponsored flight doesn't have a Big Mac that you want? Probably doesn't make you like McDonalds, even though they may have nothing to do with how much is carried onboard.

Quoting Qwame (Reply 7):
I think they should only do it in coach though.

This is where it gets trickier. The sponsor would want to reach the business and first class passengers, but it's not like a bus where they paid $2 for the trip. I don't think they would be happy having to look at ads all the time after spending thousands of dollars.
It could work though, it would just have to be more subtle.

Quoting NYC2theworld (Reply 10):
First class amenity kits/bathroom soaps sponsored by Aveda...I think things like that where it gets the product into the customer's hands would be a good idea.

I think that would work. Really there's no reason the airlines should pay for any of that stuff, they should be able to work out a sponsorship deal.

Quoting RFields5421 (Reply 15):
But as far as individual flights, if a company is interested in trying to capture part of that audience, repaint an entire aircraft is probably cheaper and a much better return over the next year or so.

The problem with that idea is that not that many people see it. Unless you're at an airport or very close to one you would never see it, unlike a bus or train. I think the only reason it works at all now is because there aren't that many around.


User currently offlineTangowhisky From United States of America, joined Jun 2006, 931 posts, RR: 7
Reply 17, posted (6 years 5 months 2 weeks ago) and read 3011 times:

There are lot's of opportunities for airlines to get creative in finding revenue sources and cost savings. Here are some
1) Boarding passes with several sponsored ads on both sides
2) Baggage tags with highly visible ads (AVIS, McDonald's,etc.)
3) Complementary chocolate mints during cabin service by Hershey's
4) There are millions of people in the air every day. When movies are not running on long flights, the pharmaceuticals should have ads on sleeping pills for thos that can not sleep, or ant-drowsy pills for those that need to go to a business meeting once they land

There are all kinds of "not in your face" possibilities.



Only the paranoid survive
User currently offlineG4resagent From United States of America, joined Oct 2005, 300 posts, RR: 0
Reply 18, posted (6 years 5 months 1 week 6 days 19 hours ago) and read 2929 times:

You mean like this?

http://cdn-www.airliners.net/aviation-photos/photos/3/1/2/1036213.jpg


User currently offlineQwame From United States of America, joined Aug 2006, 129 posts, RR: 0
Reply 19, posted (6 years 5 months 1 week 6 days 17 hours ago) and read 2878 times:



Quoting AirNZ (Reply 11):

I just think after so much for an airline ticket it is not fair to bombard you with ads. like they do on the metro-north or city buses. I will say keep the ads for business class and first in the bathrooms but not in the cabin.


User currently offlineUtapao From Thailand, joined Jul 2005, 645 posts, RR: 8
Reply 20, posted (6 years 5 months 1 week 6 days 16 hours ago) and read 2847 times:

Ads or "give-aways" (free coffee, newspaper, burger, key chain with the sponsor's logo) would be one thing, and sort of fits in with the "bus mentality" taking over air travel in the US, at least. And having their logo on the outside of the aircraft is another idea, and has bee done.

But to be a "sponsor" of a flight, the Flying Lunatics would then say "Well, my McDonald's flight on XX was delayed 5 hours"... it would become the "sponsor's issue" in many people's minds. Like the grandmother who sued MickyD because her coffee was hot and burned her legs when she spilled it (!!), someone would sue because they drank the free coffee and then were denied access to the lavs while taxiing! (intended sarcasm)

And just the general turmoil of air travel currently, from a marketing standpoint, as a marketing person, I would not would want to spend my advertising budget in that area right now.



Sawasdee khrab!
User currently offlineDocLightning From United States of America, joined Nov 2005, 20333 posts, RR: 59
Reply 21, posted (6 years 5 months 1 week 6 days 15 hours ago) and read 2800 times:



Quoting Phoenix9 (Thread starter):
With struggling carriers...could they come up with something like a "sponsored" flight e.g. Welcome to flight XXXX , this flight is sponsored by COMPANY A for our passengers' comfort. Please enjoy your flight to XXXXXXX.

Already done. Not in exactly that way, but there are print ads. And airlines make revenue off of print ads in the in-flight magazine (which isn't put there as a service to customers, but as an advertising cash cow).

Several Asian airlines have ads on the overhead bins. And I've been on at least one aircraft with ads comprising the top surface of the traytables.

So although they don't announce that today's flight is sponsored by XXXX.com, they do make a fair amount of advertising revenue. Especially because air passengers are the ultimate captive audience. Big grin


User currently offlineCsavel From United States of America, joined Jan 2001, 1374 posts, RR: 4
Reply 22, posted (6 years 5 months 1 week 6 days 14 hours ago) and read 2788 times:

how about charging for the PTVs? Perhaps the map is a given, but other than that, even for jetBlue, you need the boob Tube that bad, pay up! Otherwise bring a book. I know, radical


I may be ugly. I may be an American. But don't call me an ugly American.
User currently offlineDocLightning From United States of America, joined Nov 2005, 20333 posts, RR: 59
Reply 23, posted (6 years 5 months 1 week 6 days 10 hours ago) and read 2730 times:



Quoting Csavel (Reply 22):
ow about charging for the PTVs? Perhaps the map is a given, but other than that, even for jetBlue, you need the boob Tube that bad, pay up! Otherwise bring a book. I know, radical

DL does.


User currently offlineSignol From United Kingdom, joined Oct 2007, 3024 posts, RR: 8
Reply 24, posted (6 years 5 months 1 week 6 days 10 hours ago) and read 2710 times:

How about even having a few books for sale on board?! Maybe just a few copies of the current top 5 sellers could be kept as stock on board. I've seen vending machines in airports with books in recently.

signol



Flights booked: none :(
25 Apodino : Actually USAirways still does this on mainline aircraft to this day.
26 NYC2theworld : Not entirely true. TV, Music, and the muliplayer quiz game (BTW thanks Airliners.net, I was flying ATL-JFK and won 3 rounds because of what I learned
27 JJJ : IB's regional subsidiary Air Nostrum already includes tourism-related ads in their announcements. Those are paid for by the local/regional government
28 AirNZ : I will respectfully, but absolutely, disagree with you and your argument has no validity whatsoever. Once again you are implying that 'business and f
29 LipeGIG : I believe airlines already cover almost ALL possible ways to increase revenue. They are charging for PTV use, for additional bag, some for seat reserv
30 Iflyac : Not superior, but if I pay 4 grand to fly across Canada in Executive First, I don't want to stare at a Home Depot ad banner.
31 Csavel : Didn't know that. OK how about airline lotto?
32 Viscount724 : I have seen almost all those things done for years. Advertising on the back of boarding passes and ticket envelopes (both rapidly disappearing with e
33 Post contains images PPVRA : Invest in pax weight-loss programs: LAS Airport Replace all chairs at the gates with treadmills.
34 PPVRA : You guys think that maybe airlines could get companies to sponsor snacks and beverages? Or are they too big a contract for Coca-Cola to give up? F/A:
35 Brilondon : What the heck is that supposed to mean, "only in coach". This would be an opportunity too advertise to your target market for high end products in Fi
36 Brilondon : Why should you not be subjected to it. Are you above everybody else? I think that this should be taken further and let niche marketers advertise to y
37 DocLightning : As yet illegal to gamble outside certain municipalities.
38 DL767captain : Turning airplanes/airlines into giant billboards is something i do not want to see! On my flight from PHX to SAN they had Chevy Malibu posters on all
39 Lincoln : This is one of about 5 reasons I'm in no hurry to pay money for a ticket on US. CO once bumped me over to US (on a economy-class Y fare that was, IIR
40 JetBlueJackets : Skybus did this, and was the cheesiest thing ever....sure didn't add much to their bottom line
41 Luv2cattlecall : VX has a "shrine" to Method brand products around their soap dispenser in the lav. It's a good idea..subtle/not too in your face, but it creates bran
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