Qantas’ cost-cutting and network adjustments have not only contributed to the carrier’s return to pre-GFC financial profits, but have increased its value in the aviation sector.
According to a study conducted by a brand valuation company, Brand Finance, the Flying Kangaroo’s brand value experienced “impressive growth” and is now the 17th most valuable compared to other airlines around the world.
That’s a jump of four spots from last year’s 21st position and places Qantas’ brand value just behind Air France and one spot ahead of Japan Airlines.
Research found perceptions among external stakeholders and staff have improved significantly and the financial picture looks positive with forecast revenues and margins on the rise.
Brand Finance Associate Director Savio D’Souza said Qantas has been able to make the jump through cost-cutting initiatives.
“Qantas has been able to maintain brand vitality in the face of some significant but important cuts that have improved profitability, brand value and Qantas’ financial sustainability.”
Savio D’Souza, Brand Finance Associate Director
Unsurprisingly, the Emirates brand is the most valuable in the aviation sector for another year.
This could have something to do with the carrier operating flights to 164 destinations in 78 countries and its recent marketing campaign featuring Jennifer Aniston, which racked up 5.8 million views on Youtube – that’s two million more than Air New Zealand’s viral ‘Men in Black’ safety video.
Brand Finance Chief Executive, David Haigh, said Emirates’ brand value has grown by 17 percent in 2016, mostly because it “is more popular than ever”.
“Its brand equity scores for consumer factors such as familiarity, consideration, preference, satisfaction and recommendation are up across the board.”
David Haigh, Brand Finance Chief Executive
“Emirates’ growth this year, which builds on impressive historic trends, suggests that by 2020 it could become the first Middle Eastern brand to enter the top 100 of our ranking.”
On the other side of the Tasman, Air New Zealand’s marketing efforts and celebrity connections heavily contributed to its seven spot jump from 45th most valuable brand to 38th.
Its codeshare buddy, Virgin Australia, also moved up the ladder by four spots this year, now sitting at 34th most valuable airline brand from 39th last year.
Making up the list of top ten most valuable carriers were Emirates (1), Delta (2), American Airlines (3), British Airways (4), United Airlines (5), Air China (6), Southwest Airlines (7), Qatar Airways (8), China Eastern (9) and Lufthansa (10).
