Rebranding Malaysia Airlines: Substantive Change or Perfuming the Pig?

This week there were reports that Malaysia Airlines is planning to 'rebrand' itself. The efforts are reported to include a possible renaming of the airline.

Renaming? Really?  

Sure, Malaysia Airlines has suffered more than its fair share of tragedy this year, but can renaming really help repair the damage? Or might it just make matters worse?

As noted in its annual report, Malaysia Airlines was investing in an advertising focused brand initiative prior to the tragedies. One of the objectives was to raise brand awareness. While not divulging absolute numbers, the report stated that unaided awareness had increased by 32% as a result of these efforts. 

Ironically, as a result of the recent tragedies, Malaysia has likely earned more global media exposure than their advertising budget could ever deliver. Because of this, Malaysia Airlines brand awareness has probably increased astronomically in the last several months. At this moment, it might very well be one of the best known airline brands in the world...for all the wrong reasons.

And there in lies the rub. If Malaysia Airlines chooses to change its name, this decision will receive unprecedented media coverage. What ever the new name or logo, the new airline will continue to be referred to as 'The airline formerly known as Malaysia' long after the name change. And the image of the former Malaysia Airlines will be forever frozen in time...the worst time of its existence. And the new airline name will likely be regarded by many as a cover up of something sinister. And this will be amplified exponentially in social media.

So what should Malaysia Airlines do? 

First, they should clarify their intent for rebranding. They should ask themselves what they are trying to accomplish, and what they are willing to do to get there. 

The fact is that the reason Malaysia Airlines launched its brand advertising last year is that had problems before MH 370 and MH 17 shone a spotlight on them. Malaysia Airlines lost money in 2011, 2012, and 2013, with a cumulative loss of around 1.3 billion U.S. dollars. 

Malaysia Airlines operates in the geographic growth center of aviation where low cost carriers are making a land grab for the future. In its annual report, Malaysia Airlines states that profit improvements will be driven by attracting more lucrative business travelers. To do so, Malaysia needs to distance itself from the lost cost carriers and be perceived as a top tier airline brand.

But right now, facts suggest that Malaysia might just be stuck in the 'murky middle'...not quite top tier, and not quite low cost: 

• While Malaysia's has an international footprint, the bulk of its flights are regional, mainly serving the same Asia Pacific routes that the low cost carriers serve. 
• While Malaysia has 6 state of the art Airbus 380's, 62% of its 108 aircraft are smaller 737's with few creature comforts. 
• These cramped 737's are frequently used on medium haul international routes, like the 4 hour flight from Kuala Lumpur to Hong Kong.
• The average age of Malaysia Airlines 777's is 14.6, making it one of the oldest fleets of 777's flying today. 
• While some of Malaysia's long haul aircraft's business class seats convert to fully flat sleepers, many have angled sleepers, or worse, old fashioned reclining seats. 

The reality is that sometimes customers get a low cost carrier experience and sometimes they get a top tier experience. But mostly, they are likely to be confused about where Malaysia fits in the market. 

Which Business Class Experience Today?

If Malaysia Airlines is to survive, it needs to consistently solidify its position as a top tier brand. This will not happen if the 'rebrand' is limited to a new logo and a sparkling new advertising campaign. To paraphrase Bill Bernbach, 'Nothing kills a bad brand faster than good advertising.' Instead, Malaysia must focus on creating a consistent and desirable customer experience on every flight. Only then will an advertising campaign help.

And, in fact, by upgrading the inflight experience, Malaysia might actually be able to allay safety concerns as well.  Studies show that there is a correlation between perceived airline cleanliness and perceived safety.  The logic being that if an airline is careless at cabin maintenance, then it will also be careless about routine mechanical maintenance. 

So can Malaysia Airlines be successful at mitigating the brand damage sustained by MH 370 and MH 17?  Only time will tell.  But what Malaysia chooses to do now will have significant impact on the outcome.  Because in the end, brands can't really reposition themselves.  They can only behave.  Customers will do the positioning for them.