Airline disruption costs the industry an estimated $60b a year. But in the age of social media, it is more likely than ever to cause irreparable damage to an airline’s brand and severely impact customer loyalty.
At Aviation Festival Asia, Alexia Leong, Head of Customer Happiness, AirAsia and Simon Dempsey, CCO, Plan3 unpacked this, explaining how AirAsia mitigates the financial and reputational impact to turn disruption into an ooportunity.
Although the cost of disruption is approximately $400 per passenger, a painful figure given airlines are making an average profit of just $2.25 per passenger, Leong explained why the reputational cost is an even greater concern:
“When it comes to mishandled IROPs, the damage for financial loss is actually minor compared to the brand damage – that one is even more impactful. There are a few examples actually. Number one is in terms of customer loyalty, because any negative sentiments, bad words from customers, may be spread to their friends, families, and online, and it will be shared via social media platforms. So actually, it brings a negative impact to the airline if that review is being shared widely. Eventually, you lose loyalty from your customers in the long run. Probably you’ll get scrutiny from the regulators as well – the financial impact, as in needing to pay for possible penalties, fines due to non-compliance with local requirements.”
To learn how AirAsia transforms disruption into an opportunity through technology, personalisation, empathy, and more, watch the full interview below.
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Questions asked include:
- How much do you think disruption costs the aviation industry on a yearly basis?
- Beyond financial cost, what can mishandled IROPS cost an airline from a reputation perspective?
- What does a passenger-first approach to disruption took like in practice and how can technology support airlines in delivering a seamless experience that turns disruptions into an opportunity to build brand loyalty?
- At AirAsia how do you equip staff with the tools and information to coordinate effectively and minimise stress for passengers?
For more onsite at Aviation Festival Asia 2025 see:
- Emerging stronger: What’s next for SriLankan Airlines?
- Why Cebu’s CEO thinks ancillary fee bans will be overturned
- Julia Simpson: “Within five years, four or five AI tech giants will emerge and we have to back a horse”
