Air Canada sticks by Enbridge after Tim Hortons bails

As you fasten your seatbelt on an Air Canada flight, the seatback screen begins to playa commercial for Enbridge, the same type of30-second spot that landed Tim Hortons in a public relations melee earlier this summer.

How does Air Canada skate away from controversy, while Tim Hortonssparked outrage from both oil lovers and haters? The reasons are wrapped up in branding, expectations and head office decisions.

• Tim Hortons yanks Enbridge ads, sparks Alberta backlash
• Tim Hortons reviews Tims TV after Enbridge ad controversy

When it comes to customer relations, expectations go a long way. Tim Hortons and Air Canada contrast significantly in this regard.

Thein-restaurant entertainment system at Tim Hortons was still relatively new and customers were still becoming accustomed to what it was all about. Tims TV can run advertisements, promoteTim Hortons productsor providenewsas you wait in line forcoffee or as you sit down with ahoney cruller.

That was one factor in the problems that arose for Tim Hortons. Customers didn't know what to expect, according to marketing expertJacqueline Drew, with Calgary-basedTenato Strategy Inc.

"I don't think they had an established roster of advertisers, so when they jumped in with Enbridge, it just seemed like, 'What's this?'" says Drew."People were more used to seeing things promoting TimHortonssummer kids camps and suddenly you throw anEnbridgead in there and it seems like, 'Why is this promotingEnbridge'svalues at a TimHortons?'"

It didn't help that the Enbridgecommercials were not selling a particular product, but more promotinga positiveimage of the company and its role as an energy provider.

Drew suggeststhat's one reason why the advertisements rubbed some people the wrong way, leading to complaints against the coffee chain.

Air Canada is in a very different position with its in-flight entertainment. Even occasional flyers are accustomed to having to sit through a series of commercials before being able to surf through TV shows and movies while soaring through the sky. It's accepted that the advertisements aren't related to Air Canada, but simply a way for the airline to make money and cover the cost of the programs you can watch. Air Canada has established itself as an advertising medium, similar to billboards and transit buses, for example.

'A very knee-jerk reaction'

Tims TV could have grown into arevenue source for Tim Hortons, similar to the extra cash generated by similar in-store systems south of the border such as theWalmart TV Network and theMcDonald's Channel.

But the company suspended the ads and later reviewed the program once all the complaints started coming in from anti-pipeline advocates upset about Tim Hortonsworking with Enbridge. Enbridge isthe company behind theproposed $7.9-billionNorthern Gateway pipeline, whichwould shipoilsandsbitumen from Alberta to the west coast. It's acontroversial project, one even the current Alberta government is notendorsing.

"I thought TimHortonshad made a very knee-jerk reaction," says Debi Andrus, a marketing professor at the University of Calgary. "But they have to look at what could my audience perceive, what will I lose in terms of revenue, how can I be perceived to be a good corporate citizen they have to weigh all of those issues."

Andrus says social media is making it more difficult for companies who want to always present a good image in the world. Not only do companies have complex relationships with suppliers and customers, but there are special interest groups to also work with.

Air Canada hasn't had to faceany online petitions or fierce social media campaigns about its involvement with Enbridge, although there are some instances of people raising the issue with the airline.

In a statement,Air Canada says it is pleased to work with the company, adding "Enbridge is a major Canadian company that advertises regularly and extensively in various media throughout Canada."

More options for coffee than flights

When customers begin to complain, companies have to figure out how serious the concerns are and whether they will dissipate or build in strength. Tim Hortons, in particular, is a relatively easy business to boycott, since it sells frequently purchased products. Caffeine-deprived Canadians have many options when it comes to buying a cup of coffee, no matter their loyalty to the double double.

Air Canada, on the other hand, is much tougher to avoid.

"Air travel is dictated largely on location, schedule and price," says Ken Wong, a marketing professor at Queen's University in Kingston."I might not have as many options if I choose to boycott Air Canada and I want to fly somewhere within the Canadian border."

• Tim Hortons, Enbridge and the pitfalls of cross-promotion

Wong suggests companies weigh the risks of a potential boycott because they "can be damning." The decision to pull the plug on the Enbridgeadvertisements and review the Tims TV systemlikely factored in how much money was at stake.

Tims TV was still in its infancy and probably wasn't a major line of business for Tim Hortons. It's much different for Air Canada, since in-flight advertisements are a part of an airline's ancillary revenue, a significant revenue source that includes everything from selling food and earbuds to seat selection and upgrades.

"When something represents a big revenue stream, you are willing to accept a little more risk," says Wong."When something is rather insignificant to your overall business, any risk is probably too much."

'Be careful' vs. 'We all need energy'

The Tim Hortonsfiasco with Enbridge raises questions about whether companies may think twice before partnering with an oil and gas company. Marketing experts are divided over that notion.

Drew suggests some companies might give some extra thought whether it's a good idea to work publiclywith players in the oil and gas industry.

"You have to be careful when you are partnering with oil and gas because if your customers have the other mindset that everything should be green energy and that oil and gas is somehow ruining the planet, that could be a bad reflection on their brand," says Drew.

Others, such as Andrus, suggest the hoopla over Enbridge and Tim Hortons was overblown and most people accept the work of oil and gas companies.

"This issue is overemphasized because we all need energy," says Andrus."No one wants to destroy the planet."

Instead, she suggests companies should pay more attention to the people behind online protest campaigns and petitions to understand what agenda they might have.