Can Airlines Differentiate Themselves By Managing Ground Delays?

These days, airlines are having a hard time.

First, it was high fuel prices. Then, just when the airlines locked in fuel hedges, oil prices dropped - and the airlines were stuck paying above-market rates.

Now the recession is keeping passengers away, and news of AIG greed is causing companies to cancel trips to retreats and trade shows.

On top of these issues, overcapacity at airports like O'Hare make flight delays inevitable. All it takes is a little bad weather to cause major problems.

Notice that I highlighted the last part in bold. The reason is that, if I was running an airline, that condition would present me with the opportunity to differentiate my airline.

While the in flight experience is governed by strict regulations, airlines are free to innovate and get creative on the ground.

With all things being equal, who wouldn't want to fly out of busy airports with the one airline that takes care of delayed passengers.

The thing I would do is interview the ground crews and customers to find out what goes on during delays. What are the frustrations that come up again and again. My guess is communications, comfort, and ease of making alternate plans would be near the top.

Then, since delays are more common and inevitable, I will organize around this. I would have teams at each airport dedicated to delays.

Since airlines don't have much money these says, I would partner with companies that deal in comfort and want to attract travelers. Hotels, for example.

Suppose my airline partnered with Hilton to create a special lounge at O'Hare - just for passengers on delayed or canceled flights.

The lounge could be set up with sofas, recliners, desks, phones, snacks, and airline reservation people. The bulk of the costs could be picked up by Hilton. In this way, they will have branded advertising in the middle of the airport. This would be "active advertising" - instead of being intrusive, they will be providing a free service which would build goodwill.