Who Does What
Airline Industry May Be In Holding Pattern, But Sponsorship Activity Continues
5/11/09: Although airlines have faced significant challenges over the past several years–mainly fluctuating oil prices, the global recession and, more recently, flu concerns–sponsorship activity remains alive and healthy.
Nearly all of the country’s major carriers have signed significant new deals and/or renewed major partnerships over the past year.
Still, the skies are not entirely clear to the horizon. Economic turmoil has forced American Airlines to drop under-performing properties in favor of those that can be activated on a global basis, while Southwest has turned to one-year deals due to the uncertain economic situation.
As in years past, airlines’ key priorities remain promoting their positioning as the hometown carrier in key markets, gaining one-on-one marketing opportunities to let consumers sample their on-board experience, building relations with frequent business flyers and securing business from sponsored properties.
Deals are typically a combination of cash and in-kind tickets, with the proportion of cash commensurate with the size of the property.
U.S. Airways Inc. stands out from its competitors among the eight largest U.S. airlines in having a much smaller sponsorship presence. The other seven ranked by passenger counts prior to the Delta/Northwest merger are profiled below.
Airlines: Who Does What
AirTran Holdings, Inc.
9955 AirTran Blvd.
Orlando, FL 32827
Tad Hutcheson, vice president of marketing and sales
407/318-5600
Targets / Objectives / Key Activations: Eighth largest U.S. airline uses sponsorship to accomplish two primary objectives: generate awareness and incent trial, especially in newer “growth” markets. “Once we get the customer on the airplane, we can keep them,” Hutcheson said. Focuses on sports-, kids- and leadership-oriented properties in Atlanta, Baltimore, Boston, Indianapolis, Milwaukee and Orlando. Strategy is to have limited number of deals in each market activated through multiple channels. For example, leverages Colts tie with Peyton Manning endorsement deal, seat upgrade promotion and large-scale model plane in Lucas Oil Stadium. Signed deals this year with Brewers and slugger Ryan Braun.
Decision-making Structure: Hutchenson reviews and signs off.
Current Sponsorships: Atlanta Symphony at Verizon Wireless Amphitheatre; Bastille Days Festival, Milwaukee; BB&T Charleston Food & Wine Festival, South Carolina; Florida Film Festival, Orlando; Centennial Olympic Park Fourth of July Celebration, Atlanta; Georgia Aquarium; MLB Brewers; NFL Ravens and Colts; NHL Bruins; True Colors Theatre Co., Atlanta; Visit Florida; Woodruff Arts Center, Atlanta; Zoo Atlanta
Additional Comments: Sponsorship represents roughly 25 percent of annual marketing budget, Hutcheson said. Titles Fireworks Spectacular at Atlanta Fourth of July event. Brewers tie includes AirTran Airways Landing Zone at Miller Park; carrier is activating with billboards touting the sponsorship and deal with Braun. Also has endorsement deals with a handful of other pro athletes including IndyCar Series driver Danica Patrick and NFLers Donald Driver and Matt Ryan. ’08 U.S. passenger count: 24.5 million.*
American Airlines
4333 Amon Carter Blvd.
Fort Worth, TX 76155
Billy Sanez, director of global advertising, promotions & corporate communications
817/963-1234
Targets / Objectives / Key Activations: Unit of AMR Corp. and second-largest U.S. carrier retooled its corporate-level sponsorship strategy last year, dropping under-performing properties and those that don’t offer an international marketing platform in favor of ties that can be activated on a global basis. Signed new partnerships in ’08 with MLS and the NFL Cowboys and expanded its role with NBA’s international events to reach domestic and international travelers. The carrier has not dropped any major ties this year, Sanez said. Remains an active local sponsor. Seeks properties reaching 25-to-54-year-old business travelers and providing exclusivity, media exposure, promotional elements and hospitality opportunities. Evaluates local deals based on their ability to reach women, Hispanics, African-Americans, the GLBT community and other targeted groups.
Decision-making Structure: Accepts corporate-level and local proposals at AA-Promo.com/Guidelines.do. Local deals come out of local sales offices.
Current Sponsorships: Title: American Airlines Arena, Miami; American Airlines Center, Dallas; American Airlines Theatre, New York City. Cosponsor: AFI Dallas Int’l Film Festival; Arlington Park horse track, Arlington Heights, Ill.; Bank of America Chicago Marathon; Bass Performance Hall, Fort Worth; Brookfield Zoo, Illinois; ECHL Checkers; FedEx Orange Bowl and Festival; Grant Park Music Festival, Chicago; ING Miami Marathon and Half Marathon; Int’l Reggae and World Music Awards, New York City; Los Angeles Film Festival; Main Street Fort Worth Arts Festival; MLS and four teams; Navy Pier, Chicago; NBA Europe Live; NBA Mavericks and Heat; NFL Cowboys; Pasadena Tournament of Roses Parade and Rose Bowl Game; Philadelphia Zoo; San Angelo Stock Show & Rodeo, Texas; St. Jude Children’s Research Hospital; Susan G. Komen for the Cure; Zachary Scott Theatre Center, Austin, Texas.
Additional Comments: Activates 21-year-old Komen tie through Miles for the Cure program offering AAdvantage frequent-flyer members five miles for each dollar donated to the cause. American is putting more focus on branded entertainment, planning to partner with additional films this year after aligning with Kung Fu Panda, Sex in the City and Bottle Shock last year, Sanez said. Octagon, PR agency Weber Shandwick and promotion agency Eventys Latino help develop sponsorship strategy and activation. ’08 U.S. passenger count: 92.7 million.
Continental Airlines, Inc.
1600 Smith St.
Houston, TX 77002
Dana Bates, director of advertising and sponsorship marketing
713/324-2950
Targets / Objectives / Key Activations: Apart from dropping title of New Jersey’s Continental Airlines Arena in ’07, the seventh largest U.S. carrier has maintained long-term relationships with the majority of its sponsored properties. Continental uses sponsorship to reinforce its market positioning and enhance relationships with frequent business travelers. The airline typically activates by offering OnePass members the opportunity to bid frequent flyer miles for once-in-a-lifetime property-connected perks, such as walk-on roles in Broadway shows. Also looks to secure business from sponsored properties. Concentrates on properties located in its three key U.S. operating hubs: Cleveland, Houston and New York City.
Decision-making Structure: Skokie, Ill.-based Paragon Marketing Group screens and evaluates ties in conjunction with Bates, Jeff Jones, senior analyst of advertising and sponsorship marketing, and other marketing staff. Paragon also helps develop sponsorship strategy and implement ties.
Current Sponsorships: Albuquerque Int’l Balloon Fiesta; The Broadway League/Tony Awards; Carnegie Hall; ConocoPhillips Rodeo Run, Houston; Hobby Center for the Performing Arts, Houston; Houston Livestock Show and Rodeo; ING New York City Marathon; Lincoln Center for the Performing Arts; Make-A-Wish Foundation of America; March of Dimes March for Babies; Mercedes-Benz Fashion Week, Miami; MLB Astros and Indians; MLS Dynamo; NBA Cavaliers, Nets and Knicks; New Jersey Performing Arts Center; NFL Browns, Texans and Giants; NHL Rangers; PGA Tour AT&T Pebble Beach National Pro-Am; Rock & Roll Hall of Fame + Museum, Cleveland, and Annex NYC; USTA U.S. Open; Wings Over Houston Airshow.
Additional Comments: Also activates through proprietary events, such as last year’s Pinstripes in the Park viewing event at New York City’s Bryant Park around its former partnership with the MLB Yankees. “We like to create events where Continental can have ownership and sustained equity, both at the event and, where appropriate, outside the venue,” said Tony Schiller, Paragon executive vice president. Activates NJPAC through multiple channels including employee ticket discounts, performances at Newark Int’l Airport and artist meet-and-greets for OnePass members. ’08 U.S. passenger count: 46.9 million.
Delta Air Lines, Inc.
1030 Delta Blvd.
Atlanta, GA 30320
Tim Mapes, senior vice president of marketing
404/715-2600
Targets / Objectives / Key Activations: Delta, which became the world’s largest airline following its ’08 merger with Northwest Airlines Corp., uses sponsorship to engage with customers in key markets and bring its brand to life through on-site activations, branded spaces and traditional media, with a goal of increasing awareness and affinity among travelers. Looks to include employees in activation efforts as “the face of the Delta brand.” Measures awareness gains and tracks new SkyMiles frequent flyer memberships generated through sponsorship-related activities. The carrier, which has retained the bulk of Northwest’s sponsorships, this year signed a first-time presenting sponsorship of the Twins season–expanding Northwest’s previous relationship with the team–as well as a new deal with the Mets and an expanded partnership with the Yankees.
Decision-making Structure: Accepts proposals at Delta.Sponsorport.com.
Current Sponsorships: Title: Classic Chastain Park Amphitheater, Atlanta. Presenting: MLB Twins season. Cosponsor: AIDS Walk New York; Atlanta Jazz Festival; Brigham Young University athletics; Cincinnati Ballet; Cincinnati Symphony Orchestra; Cirque du Soleil; Duke University athletics; Food Network South Beach Wine & Food Festival, Miami; Grammy Awards; MLB Braves, Mets, Yankees; National Assn. of Collegiate Directors of Athletics; National Society of Black Engineers; NBA Hawks; New Orleans Ballet Assn.; NFL Saints and Jets; NHL Ducks and Thrashers; Phillips Arena, Atlanta; PGA Tour; Sundance Film Festival; Tribeca Film Festival; University of Georgia athletics; U.S. Ski & Snowboarding Assn.; Wildlife Conservation Society; Zoo Atlanta.
Additional Comments: Recently extended its 21-year partnership with the PGA Tour through ’10. PGA Tour deal confers status as official airline of PGA Tour, Champions Tour and Nationwide Tour; activates by offering discounts and upgrades to tour pros. Also titles Global Pavilion at The Barclays New York-area PGA Tour stop. Yankees tie reportedly includes exclusivity in the private jet category for Delta AirElite Business Jets. Activates USSA with athlete meet-and-greets in Delta Crown Room clubs and airport concourses. ’08 U.S. passenger counts: 71.6 million (Delta); 48.7 (Northwest).
JetBlue Airways Corp.
118-29 Queens Blvd.
Forest Hills, NY 11375
Lisa Borromeo, manager, national sponsorships
718/286-7900
Targets / Objectives / Key Activations: Ninth-largest U.S. carrier sponsors to position itself as a hometown carrier in its service markets and sample its on-board experience. The airline typically showcases its seats, through on-site platforms such as Leg Rooms at endurance events where participants can receive massages. Priority markets for sponsorship are its New York City home and Boston, its second largest and fastest growing market. Late last year announced a three-year partnership with the Red Sox, replacing Delta. Other key markets are Los Angeles, Orlando and Fort Lauderdale, Fla.
Decision-making Structure: Borromeo oversees national sponsorships, while five regional marketing managers review and fund local ties. Accepts proposals through JetBlue.com/Sponsorships.
Current Sponsorships: Austin Marathon and Half Marathon, Texas; Boston Marathon; Carlsbad Marathon & Half Marathon, California; Chelsea Piers, New York City; Fort Lauderdale A1A Marathon and Half Marathon; Litquake, San Francisco’s Literary Festival; Marine Corps Marathon, Washington, D.C.; Mission Federal ArtWalk, San Diego; MLB Red Sox and Dodgers; MLS Real Salt Lake; NBA Clippers and Magic; NFL Bills; Ukrop’s Monument Avenue 10K, Richmond, Va.; USA Luge.
Additional Comments: Where possible, JetBlue looks to provide transportation for sponsored properties. Activated Red Sox tie this winter by offering a nine-hour sale of fares as low as $9–honoring Sox legend Ted Williams’ uniform number–between Boston and seven American League cities. CAA Sports brokered the Sox deal. ’08 U.S. passenger count: 21.8 million.
Southwest Airlines Co.
2702 Love Field Dr.
Dallas, TX 75235
Andy Allman, director of promotions, sports marketing and licensing
214/792-4000
Targets / Objectives / Key Activations: Largest U.S. carrier uses sponsorship to build customer loyalty and engrain itself into fabric of the communities it serves. Also sponsors to build presence in new markets. Typically leverages through on-site sweepstakes awarding tickets and interactive promotions where consumers can learn about Southwest. The carrier has put more emphasis on one-year deals over the past couple of years as a result of the challenged economy, Allman said. Local deals are screened and funded by roughly 42 field marketing staffers; corporate-based promotions specialists provide input.
Decision-making Structure: Allman approves national deals, as well as pro sports team ties and major sponsorships in Southwest’s 12 to 15 core markets.
Current Sponsorships: Title: Chinese New Year Festival & Parade, San Francisco; Gasparilla Pirate Fest, Tampa. Presenting: Burger King Tu Ciudad, Tu Musica music competition, 10 markets. Cosponsor: Busch Gardens (Tampa and Williamsburg, Va.); Hurley U.S. Open of Surfing, Huntington Beach, Calif.; The Health Museum, Houston; Houston Livestock Show & Rodeo; ING Bay to Breakers 12K, San Francisco; MLB Orioles, Cubs, Phillies, Padres and Rangers; National Cherry Blossom Festival, Washington, D.C.; Naismith Memorial Basketball Hall of Fame; NBA; NBA Rockets, 76ers, Suns, Spurs and Wizards; NHL Stars, Flyers and Sharks; PGA Tour FBR Open, Phoenix; Scottsdale Culinary Festival, Arizona; SeaWorld Adventure Parks (Orlando, San Antonio, San Diego).
Additional Comments: Evaluates new sponsorship opportunities in October-December quarter. Houston Livestock Show & Rodeo and Padres deals are new this year. Does not look to provide air travel for sponsored pro sports teams, Allman said. “We do have a charter business, but we don’t have a tremendous amount of availability.” Typically measures success by tracking media exposure. ’08 U.S. passenger count: 101.9 million.
United Airlines
77 W. Wacker Dr.
Chicago, IL 60601
Samantha Petti, manager of marketing communications
312/997-8000
Targets / Objectives / Key Activations: Fourth largest U.S. carrier and subsidiary of UAL Corp. uses its nearly 30-year-old relationship with the USOC as its major national sponsorship platform. Sponsors to engage customers, using property assets to elevate its brand and differentiate from competitors. Looks for on-site brand presence and promotion opportunities. Activation around Chicago Bears includes interactive schedule on team Web site that allows users to directly book United travel to away games. Also titles United Club at Bears’ Soldier Field home to target highly valued premium customers.
Decision-making Structure: Petti screens proposals. United’s marketing/promotions department is responsible for sports and events ties, while nonprofit partnerships are handled by corporate social investment/public relations.
Current Sponsorships: Title: United Center, Chicago. Cosponsor: Breast Cancer Network of Strength; Chicago Convention & Tourism Bureau; Chicago Symphony Orchestra; Conservation Int’l; The Field Museum, Chicago; Joffrey Ballet of Chicago; Lookingglass Theatre Company, Chicago; MLB Cubs and White Sox; NBA Bulls; NFL Bears and Broncos; NHL Blackhawks; ORBIS Int’l; Smithsonian National Zoological Park (National Zoo); Steppenwolf Theatre Company, Chicago; Taste of Chicago; U.S. Fencing Assn.; U.S. Figure Skating Assn.; USOC.
Additional Comments: Marketing/Promotions sponsorships must guarantee revenue generation. Last year renewed its USOC sponsorship through ’12; will fly U.S. Olympic teams to Games in Vancouver in ’10 and London in ’12. Donated airplane to ORBIS Int’l, a nonprofit dedicated to saving sight in developing countries. ’08 U.S. passenger count: 63 million.
*Per U.S. Bureau of Transportation Statistics