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Branson says BA-AA humbug to tie-up

Posted in Marketing, Latest reporters' blogs, Russell Parsons September 12th, 2008 by Russell Parsons

Sir Richard Branson knows all about the power of marketing. He has used the discipline on many an occasion, in the main successfully, as a persuasive tool to extol the benefits of his many brand adventures.

His latest campaign, however, is not accompanying the launch of a new product but to seemingly create a swell of opinion which will force the proposed tie-up between British Airways and American Airlines to be rejected by the competition authorities.

Branson says that the tie-up would cause a “monster monopoly” and would be “ant-competitive”. The entire Virgin Atlantic fleet will be painted with the slogan “No way BA-AA” and further advertising activity is planned if the deal is not stopped.

BA says the tie-up would be good news for passengers and the wider industry.

Branson knows the persuasive power of a simple message. The Virgin Atlantic brand is also well-liked and his stature as a respected entrepreneur with a history of fighting against “the man”, might well get the public onside. But is it enough to get the authorities to act?

It certainly won’t do any harm. If Branson can get the public thinking along his lines then the authorities, as they did on two previous occasions – in 1997 and 2001 – might think twice about rubber-stamping the alliance.

Thing is, the airline industry is in a different place than where it was either side of the millennium. Airlines are battling against high fuel prices and are increasingly looking for ways to reduce costs and improve efficiency – see BA’s proposed merger with Iberia. The introduction of the “Open Skies” agreement this year, which ended limits on which airlines can fly between Europe and the US, is widely seen to have increased competition in the industry.

On this basis, the chances of a third knock-back seem a little slimmer.

Branson has played David, to BAs’ Goliath before - think back to BAs’ “dirty tricks” campaign against Virgin in the early nineties.

The fact that he is announcing his opposition in such a public way suggests to me that he may harbour fears that the alliance is more likely to be agreed now than before.

If that is the case then this very public, very dramatic and somewhat savvy marketing blitz could be his final throw of the dice and with Branson’s skill as a marketer, it might just work. 

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