Case study: Delta Air Lines boycott

The story
On June 7, a group of US soldiers returning from Afghanistan recorded a YouTube video titled Delta Air Lines Welcomes Soldiers Home. Two of the soldiers explained how Delta had charged their 34-strong unit more than $2,800 in baggage fees. They said there was a contract in place that soldiers returning from active duty should be allowed four bags free of charge, but Delta had forced each soldier to pay $200 out of their own pocket for any fourth bag. One explained that his fourth bag was his weapons case – “the tools that I used to protect myself and Afghan citizens while I was deployed”.

In the 24 hours after the video was posted online it was viewed almost 200,000 times. The next day, a Facebook page called Boycott Delta for Soldiers was created and several news outlets ran stories about the boycott.

The challenge
Delta had become the target of a boycott that went viral. As one of the US’s biggest airlines, it had a lot to lose if the effort gained momentum.

Delta’s reputation was already at risk. The reputation of the entire industry was suffering from rising prices and general customer dissatisfaction. Delta had only recently exited from bankruptcy, and its stock price had fallen 34 per cent since November, 2010. Any additional hits to its reputation could have serious consequences for its market position.

The response
Delta’s response was swift and thorough. After the video went viral, Rachael Rensink, the company’s social media representative, issued an apology to the soldiers on its blog the same day, stating that it regretted “that this experience caused these soldiers to feel anything but welcome on their return home”.

The blog also emphasised Delta’s respect for military men and women and pointed out that it had supported military service organisations, such as the Fisher House Foundation and United Service Organisation.

The next day, the airline issued a formal press release announcing a new policy that all troops flying in economy class would be allowed four bags free of charge, and those flying in business class would be allowed a fifth bag.

Delta was well prepared to address an internet-led boycott because it already had a social media team in place. Delta’s newsroom responded through Twitter: “We heard your questions/ concerns re: Military baggage policies & want to answer your questions. More info on our blog . . . ” Delta then continued to address customer concerns about the baggage policy publicly on its Twitter feed.

The strategy
Whereas companies may choose to ignore a boycott if it poses a weak reputational threat, the cold-shoulder strategy would have been unwise in this case. The victims were a widely respected group of people, their claims appeared legitimate and reasonable, and they provided clear and salient proof of the company’s wrongdoing in their YouTube video.

New media outlets and social networks such as YouTube, Facebook and Twitter also amplify the effect of any boycott. Social media outlets more easily reach the kind of young, socially-conscious consumer whose perceptions of a company are most influenced by a boycott. Once a video or tweet diffuses broadly, traditional media coverage quickly follows, heightening the negative effects on a company’s image.

Key lessons
Delta did well to recognise its gaffe immediately and to apologise quickly. Using both social and traditional media to counter the messages of the boycotters was good damage control because it directly targeted the audiences who mattered while also mitigating future negative media attention.

Because boycotts put pressure on companies by getting the public on their side and do damage to a company’s image, businesses that wait to respond put their reputation at risk.

The power of social media means activist groups, even one as small and spontaneous as the upset soldiers, can reach people much faster than newspapers or television. This means companies must respond quickly and be adept at using the same technologies as those used to attack them.
- Financial Times, 21 Nov 2011