• by Aaron Baar , February 22, 2008

With increased competition for business class passengers increasing from all sides, American Airlines -the world's largest air carrier--this weekend will launch an advertising campaign--touting its premium international travel services--called the Flagship Experience.

"This Flagship Experience approach is different from what we've done in the past. It reflects how our brand is evolving, and it demonstrates that we're in tune with our customers' needs," said Dan Garton, the company's vice president of marketing, in a statement. "Additionally, it brings to life the improved experience American Airlines customers will enjoy as a result of our most recent enhancements to our business class product. Whether our customers are working, enjoying a meal and a movie, or just relaxing, we know how important it is for them to be comfortable on their flights."

In select markets on Sunday, the airline will launch a television commercial aimed at business class travelers. The commercial showcases the airline's upgraded business class, with new seats, personal in-flight entertainment systems, expanded work areas and meal service options.

To further promote the services, American Airlines has launched a new microsite, aa.com/flagship, to give potential customers a chance to experience the premium offerings virtually. The Web site will be accessible from eight countries, says American Airlines, and will get support via print and collateral advertising, direct mail and public relations efforts.

Courting international business travelers is important for American, which is the world's largest airline, because they pay a premium and are considered profit passengers, says Brian Nelson, an airline analyst with Morningstar in Chicago. "This is a very important aspect of their operation, and any augmentation and improvement in that line should continue," Nelson tells Marketing Daily. "Anything that improves their international product and premium product is a step forward, and I would expect more competition on that front."

Nelson notes that - domestically anyway - lower-cost carriers such as Southwest have also begun to target business class passengers. "The legacy guys have to maintain their lead and continue to give customers a better experience," Nelson says. "Continuing to target the business class passengers is the bread and butter of the airline business."

In recent weeks consolidation rumors have abounded in the airline industry, with the possibility that Northwest and Delta might combine to become the world's largest airline. Should that merger take place, it's likely that United Airlines and Continental would also combine in some form, according to press reports.