Global Airlines and Gen Z a route to success
The A380 took the aviation world by storm. From the pure buzz of spectators catching their first glimpse at the Paris Airshow to the hundreds of thousands of passengers who have experienced flying on this marvelous aircraft, it was evident that Airbus had developed a product to rival the Queen of the Skies, the 747.
Despite its advantages, the A380 has its drawbacks. It is not particularly economical, and with four engines instead of two, it poses more maintenance challenges. The pandemic exacerbated the A380's struggles, with almost all aircraft exiting service during the worst periods as airlines couldn't afford to operate such large aircraft with low passenger figures, leading to many being placed in storage.
Now, in 2024, the A380 is back in the skies, with most operators nearly back to full strength. However, the order book for the type doesn't look promising, and the aircraft's economics have proven to be challenging.
Would you launch a new airline solely based on the pedigree of the A380?
Fortunately, you don't have to. British entrepreneur James Asquith has founded Global Airlines and is set to launch the airline in 2024 with the A380 as the chosen launch aircraft. Is this a gimmick? No, it's 100% real, and there's a lot of positive energy towards the launch, led by Asquith and an impressive marketing effort. We salute James for his courage and wish him the best success, but we are certain he will not be naive to the challenges ahead.
The Route Network
Global's biggest opportunity and challenge will be its route network, which will be imperative for its survival in the industry for more than 24 months. The A380 requires a long runway and airports modified for high-volume passenger transit, thereby reducing options. According to Alternative Airlines, Global Airlines will be based out of London Gatwick, with its first two destinations being New York and Los Angeles. These are solid picks with high passenger demand, but both routes are incredibly competitive, with major airlines in North America and the UK having a strong presence. Why would a UK passenger switch from BA or Virgin, where they have status, to a new airline that, to our knowledge, has no partners in the US? Price may be a factor, but given Global's emphasis on luxury in its marketing, a lower price may not be an option. Comfort is another consideration; the A350 and 777 are excellent products for BA and Virgin, with the Virgin A350 being considered one of the best globally. Additionally, the partnerships BA has with American and Virgin with Delta make flying with these airlines a more attractive option for connecting passengers. If Global manages to secure a partnership with United, that could significantly expand its audience, but it's uncertain if this is even on the cards. Let’s pause for a second… A partnership sounds pretty obvious. We’re not sure Asquith is of that cut. We believe he is a disruptor, a sole ranger and this early on a partnership although potentially ticking the right boxes on an excel sheet might not match with the brands target audience, so here’s the fun part.
Could Generation Z be the answer?
There's an alternative viewpoint that BA and Virgin may not fully comprehend: the potential impact of Generation Z and the true influence of brand marketing. “Who cares if I can't make a connection at JFK?” Certainly not my TikTok and Instagram followers. However, these followers will care about experiencing modern luxury travel that diverges from anything their parents encountered, and consequently, from their own experiences. The A380 will undoubtedly capture attention, with the cabin configuration and in-flight service playing crucial roles in the success of this strategy. Something as seemingly simple as offering free, always-on WIFI for all passengers could be a game-changer. Influencers document their transatlantic trips every second. While not our idea of fun, we're not Gen Z and not the target audience for this proposal. Furthermore, if Global establishes itself as a popular brand among a younger demographic, it will inevitably attract an older crowd seeking to align themselves with what's considered trendy. Defining Global's ideal customer profile will be paramount. We envision BA appealing to the conservative business crowd, Virgin targeting the stylish over-35 club, and Global focusing on the 20 to 35 demographic, characterized by a desire to travel the world in style and possessing sufficient financial means to do so.
Airlines which fail to adapt to Generation Z could miss out on “USD 45 billion” by 2030
The power of the influencer
We have yet to witness an airline truly harnessing the power of social media influencers. Despite their efforts, traditional airline brands have struggled to establish a significant presence in this realm. Occasionally, we see announcements of new TikTok accounts, but lacking credible endorsements, these accounts deviate from showcasing lifestyle to a mishmash of random posts, failing to align with a coherent brand strategy. We don’t fault the airlines; it's simply because those most adept at utilizing these platforms are likely still in university. So, where lies the opportunity for global airlines? Instead of solely investing in route partnerships, collaborating with influencers could prove to be the most effective method to attract Gen Z and Millennial passengers from the US and UK. Consider Charli D’Amelio, one of the world's most popular models and influencers, boasting over 140 million Instagram followers. A positive endorsement from her, aligning with Global’s brand values, could potentially yield a significant impact on sales. Let’s remember, Global operates 2 to 4 A380s, each with roughly 500 seats, flying twice a day. This translates to needing to sell 1000 tickets daily. While the math here is painfully basic, the crux of the matter is that Global doesn’t require the sheer volume of sales seen by its competitors to thrive; rather, it needs to effectively target its desired audience.
The Global Market
The above two passage are undeniably poetic and somewhat embellished; however, if proven true, it would indeed be remarkable. The market Global is poised to enter is fiercely competitive. If the speculated London Gatwick to New York route (airport to be confirmed) materializes, it would arguably become one of the most competitive transatlantic routes globally, especially factoring in arrivals at London Heathrow. In recent years, we've witnessed JetBlue's launch of a route employing the A321LR and the introduction of the Mint Cabin, offering an exceptionally stylish and budget-friendly product with a sleek cabin design appealing to Millennials and Gen Z alike. Additionally, with major players like those mentioned from the UK side, along with Delta, United, and American operating into Heathrow, the competition is formidable. However, it's crucial to note that Heathrow and Gatwick present similar accessibility to tourists, both being well-connected to central London. Arguably, with the introduction of the Elizabeth line, Heathrow offers even better transportation options. Considering the constraints of slot availability at Heathrow we envisage this as the barrier that resulted in Global selecting Gatwick.
As we look ahead to the airline's debut in 2024, there's a palpable sense of excitement tempered with a recognition of the formidable challenges ahead. Global Airlines must navigate a fiercely competitive landscape, with established giants dominating key routes and customer loyalty deeply entrenched. Yet, there's an undeniable allure to Global's proposition, particularly if it chooses to target the Generation Z demographic.
By understanding and harnessing the power of brand marketing and the preferences of younger travelers, Global Airlines has the potential to carve out a unique niche in the market. The emphasis on modern luxury, coupled with innovative amenities like free, always-on WIFI, speaks directly to the desires of this demographic, who prioritize experiences and connectivity above all else.
While the journey ahead may be fraught with uncertainties, the intersection of Global Airlines and Generation Z represents a compelling fusion of tradition and innovation, promising a renaissance in air travel that transcends mere transportation and becomes an experience unto itself. As the inaugural flight prepares to take to the skies, we eagerly await the unfolding of this partnership and the transformative impact it may have on the aviation industry at large.
An opinion piece written by Andy Ainsworth
