Project: airBaltic during volcano eruption: setting a new standard for crisis management

Category: ISSUES AND CRISIS MANAGEMENT

Summary

April 2010 saw the most extensive air traffic disruption in Europe in the aviation history. According to aviation experts, financial crisis was a baby-talk compared to the impact of Icelandic volcano and the airspace restrictions imposed due to its ash cloud covering most of Europe. The International Air Transport Association (IATA) forecast USD 200 million losses per day in airline revenues. airBaltic demonstrated exemplary crisis management performance by instantly activating its routinely-simulated emergency response procedures despite a non-standard/unpredictable crisis. Furthermore, airBaltic set a new trend for crisis communication among airlines by employing a unique Information Hub model, based on the use of social media (Facebook and Twitter), which airBaltic was one of the pioneering airlines to embrace. The unique information hub mode allowed to communicate the airline’s message, and offered a platform for the public to share information (informed customers becoming informants). The approach that airBaltic, a compact and dynamic organisation, created instantly in the first minutes of disruption, was copied days later by major carriers in Europe.

Situation

In April 2010 all the major European airlines faced a logistical nightmare. With almost 10 million passengers stranded, it was the largest scale disruption in European aviation industry. In addition to the lost revenues, airlines faced costs for re-routing of aircraft, care for stranded passengers and aircraft at various airports in Europe. Facing an unprecedented and prolonged crisis situation, many airlines reframed from customer care in the overall chaos.

In 2010 on average airBaltic operated over 3,500 flights monthly carrying over 200,000 passengers a month. Due to the volcano eruption around 750 airBaltic’s flights were cancelled, affecting approximately 40,000 passengers.

Objectives

Crisis management in airline industry is strictly regulated. The procedures, however, do not cover volcano eruptions. From the first minutes of the disruption airBaltic’s main goal was to proactively take information leadership, in order to define actions and movements rather than react to them.

The objectives were:

1) to follow a strict policy of customer care;

2) to take responsibility and control potential emotional outbursts;

3) to challenge the existing legislative restrictions, 4) to enhance reputation.

The challenges were related to:

1) the unique force majeure situation – an untypical, sudden and extensive aviation crisis;

2) overall chaos;

3) geographical, legislative restrictions.

Target groups – airBaltic’s stranded passengers, existing and potential customers, the general public.

Strategy

Despite the fact that airBaltic could not prevent the disruption or predict when the ash would disperse, the airline managed to use previously well-practiced mobilization of all internal and external resources in order to react in a harmonised and consistent manner. airBaltic activated its solid and routinely-practised crisis communication procedures immediately. The strategy was to create a unique Information Hub with dual function: a) communicate airBaltic’s information b) serve as platform for gathering public and sharing information. In order to satisfy different information needs of customers and general public, the Hub was established by three-flow communication plan:

1) Communication via traditional media – providing basic information;

2) Communication via social media networks – maintaining a platform for the information sharing and passenger engaging. An informed passenger turned into informant, and could both enjoy and provide personalised assistance.

3) Communication via airBaltic’s client service (call centre & booking offices) – providing personalized help.

Execution

· On April 15th, the volcano ash cloud was in its earliest stage and was viewed by airBaltic as a news-jacking target to communicate airBaltic’s network. The first media briefing was organized an hour before any volcano-related news had reached the Latvian media;

· Later Latvia’s airspace was closed. Late on April 15th, airBaltic sent out first press release and cancelled all flights;

· Starting from April 16th through April 20th, airBaltic launched reactive media relations by organizing twice-a-day media briefings, distributing three press releases every day, providing regular updates on its webpage;

· Meanwhile, airBaltic set up a 24/7 Twitter and Facebook service. For the first time social networks were used in crisis communication;

· Only those stranded passengers who needed additional help were advised to contact the call centre or ticket offices;

Afterwards airBaltic used social media to fill the planes by announcing every free seat.

Documented Results

· Proactive communication of airBaltic led to information leadership in Latvia, while Riga International Airport remained reactive during the period of crisis. 900 publications about airBaltic in Latvian media in April, 586 on flight disruptions;

· 30% increase of followers in Facebook and Twitter, pushing airBaltic to Top10 airlines globally (received SimpliFlying-Airlines Business Awards for Social Media Excellence);

· Contribution to paradigm shift in the way airlines handle crisis management in the age of social media (See Simpliflying Infographic);

· Thanks to the social media, airBaltic efficiently managed to fill planes and smoothly resumed normal operations shortly after the disruption;

· airBaltic’s immediate and hands-on approach was subsequently copied by other European airlines, such as SAS, Finnair, Lufthansa, establishing new trendsetting standards;

· airBaltic and other airlines contributed to current improvements in the EU airspace rationalisation;

· airBaltic became a customer advocate requesting relevant care for other airlines’ passengers, thereby contributed to amendments to EU-wide air passenger compensation regulations.

Name of the link

URL

airBaltic Twitter account @airBaltic http://twitter.com/airBaltic

airBaltic Facebook account http://www.facebook.com/airBaltic

Link to Simpliflying Infographic http://simpliflying.com/2010/infographic-five-steps-to-successful-crisis-management-for-airlines-in-the-age-of-social-media/