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Aviation’s most powerful brands

Russia’s Aeroflot has been revealed as the most powerful airline brand, although American Airlines is the most valuable. A study by valuation and strategy consultancy Brand Finance finds Aeroflot’s dominance in its home market, marketing investment, a new fleet and Russia’s growing hub status underpin the result.

But American Airlines is worth US$9.8 billion ($13.3b).

By value Aeroflot ranks 26th, with its brand valued at US$1.2b.

Air New Zealand makes the top 50 and has climbed two places to 34, on US$807 million.

Brand Finance said Aeroflot had an AAA brand rating.

“The news may come as a surprise to those in Europe and North America more familiar with Western or Gulf flag carriers. Aeroflot’s brand strength stems in part from dominance of its domestic market,” the study’s authors say.

“Its brand equity scores for metrics such as familiarity, consideration, preference and loyalty are formidable, both when compared against other Russian airlines and against foreign ones within their home markets.”

Brand Finance said this was all the more impressive given that there are no air routes for which Aeroflot has exclusive access, demonstrating that its strength is underpinned by competitive advantage rather than monopoly.

“It has the youngest fleet of any major airline and is investing heavily in marketing promotion, particularly in Asia. This is reinforced by its sponsorship of Manchester United [the world’s most valuable football brand], which helps Aeroflot reach a vast audience across East Asia in particular. The approach is clearly paying off.”

In the 1970s the airline had a bad safety record but last year AirlineRatings.com gave it a maximum seven stars, based partly on safety.

The Russian airline has been involved in just one fatal accident over the past 20 years.

Aeroflot chief executive Vitaly Saveliev said the recognition reflected not just the airline’s 93-year legacy as the number one carrier in the world’s biggest country, but good service, a young fleet and marketing efforts.

Aeroflot has a fleet of 190 aircraft including Airbus A330s, A320s, Boeing 777s, 737s and Russian-made Sukhoi planes.

The top three most valuable airline brands are now all from the United States.

Brand Finance said that for the past five years Emirates had held the title of world’s most valuable airline brand, but this year sees a dramatic shift.

Last year, Emirates’ half-year profits plunged 75 per cent. The lower oil price might have been expected to help all airlines, but it has worked against the Gulf carriers, reducing demand from their home region.