Tuesday, June 03, 2008

Where To Now? 

The airline industry has now stated it is in collapse and sees no future under present circumstances. The industry will have to shrink, change its economic model -- i.e. higher airfares and fewer routes -- and make the public suffer more. It may turn into an industry that average families cannot afford and only the wealthy and businesspeople use.

How does one communicate this sour news to the public? Or, does one just let it happen because there is nothing else one can do? What is a PR strategy in this situation? Some airlines like American have come out and said they have no option but to charge more, charge for everything and raise ticket prices too. That is understandable, if not acceptable. However, the dilemma airlines face is this. Business won't accept higher fares either. There are now better videoconferencing systems that become affordable given airfares. Companies are using them.

PR strategy follows business strategy, but it is not clear, given the present situation, that there is a business strategy other than survival or merger. Should PR be communicating that?


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