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Sam Cece Chairman and Chief Executive Officer

Same Problem. Different Approach.

On a recent cross-country flight, I noticed several remarkable things with interesting parallels. First, I was not overly bummed-out about the long flight from SFO to JFK, which in and of itself is remarkable. This is not one of my favorite flights, mainly because it’s a long flight in a small aircraft. My second observation was that the flight crew (including the very social cockpit crew) was happy, productive and genuinely seemed to be enjoying their jobs. Finally, I noticed that the passengers on the flight seemed orderly, professional and happy. Something is different here.

I think that we should take a long, hard look at what Sir Richard Branson, the famous English entrepreneur and inventor of the Virgin label, is doing to transform the US Airline industry with his Virgin America. In my last post, I spoke of change and being disruptive within your market.

How is Mr. Branson instigating change?

  • Convenience
  • Freedom
  • Service

Convenience and Freedom. Virgin America Airlines has new aircraft with “Red In-Flight Entertainment” systems. Don’t let the words like “Red” or “In-Flight Entertainment" fool you. The entertainment system is really your personal portal. These seat back consoles unleash complete freedom for you, the flying public. You can literally order something to eat or drink whenever you’d like. Just swipe your credit card and within minutes, a flight attendant will have your order brought to your seat. You can also order as often as you’d like (as long as you’re willing to keep swiping your card). Additionally, you can listen to satellite radio, watch television, watch movies, play video games, instant chat with another passenger on the flight, track your flight progress with Google Maps and so much more. Mr. Branson has put you in charge of the flight. I just put on my headphones and start working. Everything that I need is right in front of me—I don’t feel dependent on anyone during the flight. What a refreshing change from the other major US carriers.

Service. Virgin America’s team is amazing. On my way back from New York, I asked a group of three flight attendants on the jet this question: “How does Virgin America instill such happiness and sense of ownership to all of its employees?” If you really think about it, these folks must have all worked for a previous airline, but how can you change their old attitudes and ways of thinking to the new, brash, customer-oriented culture that Mr. Branson envisions? They gave me some excellent insight. I also noticed similar personality traits amongst these three—they are competitive, enthusiastic and like being part of a team. They had to take a very long personality test as part of the application process. After they pass the test, they go through a series of interviews whereby the desired culture of the new company is discussed. There’s an air of camaraderie amongst the crew, even the pilots—they don’t look down upon the flight staff, they call them team members. They’re enthusiastic about this new company and really want to change the air travel experience. And they want to win.

It seems obvious now that you think about it. Why hasn’t anyone done this before? And more importantly, when will the major US carriers follow suit?

Service and Freedom. Now that’s old school thinking, but still extremely relevant today.

Posted by: Sam Cece at 10:24 AM
Categories: Business

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