There are few industries where the decisions of one company greatly affect every other company within the industry. Bank of America charging the $5/month debit card fee is a current example of one company changing an industry. After the announcement, some banks publicly said they would like to do the same; others refused to engage in fees for debit cards. The auto industry is another industry that is affected by decisions of one company – competing for better gas mileage, lower emissions, and higher class with every new model year.
One industry in particular that we want to focus on is the airline industry. Time and time again, the industry as a whole shifts as one company makes a decision. This has impacted the brands of individual companies and the airline industry as a whole. We’ve outlined three major events in airline history that illustrate these impacts:
1. Southwest Airlines is founded in 1971. Flights are only within the state of Texas, and can therefore bypass federal regulations regarding air travel – including regulated pricing.
Before: If you wanted to fly, there was no “shopping around,” the price was set. Because airlines couldn’t compete on price they used the in-flight experience as a selling point. Free cocktails, good food, and great service were differentiating factors. Just the uniform of the flight attendant could heavily influence an airlines brand.
After: The deregulation 
of airlines occurred (1978) and airlines could begin to compete on price. Southwest quickly expanded outside of Texas and dominates the low cost market.
2. American Airlines announces they will charge for the first checked bag in May of 2008. While Spirit and Allegiant had this policy before American, American was the first major airline to instate the first checked bag fee. Within months, most major airlines followed suit. Now only JetBlue and Southwest offer your first bag free.
Before: Checking a bag is normal, airlines still offer in-flight amenities like snacks, pillows, and non-alcoholic beverages.
After: More people use carry-on bags. Consumers feel airlines are nickel and diming them. Purchasing based on ticket price becomes more popular, as brand loyalty to specific airlines decreases. Airlines start charging for more things that used to be free – meals, headphones, and blankets. Spirit even started charging for carry-on bags!
3. JetBlue becomes a social media rock star.
Before: Long hours of customer service phone calls, and long lines at the gates. Airlines connected with travelers primarily through face-to-face interactions, and because most people don’t fly everyday, their perception of one airline could be determined by one interaction.
After: More airlines develop and improve their customer service efforts through social media. Delta created @DeltaAssist to help customers using Twitter. JetBlue is still the clear leader in airline social media, but more airlines continue to adopt social media and engage in real-time conversations with travelers.
Some of these airlines have also installed exit sign with red and green letters. They are mandatory life safety devices that provide building occupants with a visual guide along the path of egress during the fire, earthquake or various other type of emergency.