Potential business model issues: The airline industry competes on price, but most customers claim to be angry at how expensive it is to fly; Or maybe the real issue is not cost, but the perceived unfairness of cost (why should a round trip on Tuesday the 1st returning Friday 4th be more expensive than a Tuesday the 1st returning Friday the 11th?); Or maybe, why is the guy next to me paying $500 more to be on the plane, or more galling, $200 less?; Why is improved seating 10 times more expensive, not just 50% if you’re only getting 40% more room and a little more food/drink?

Business managers: Don’t learn from mistakes; don’t listen to employees; do employees offer suggestions to run things better?; is it a customer service business, or a bus?; Frequent Flyer miles and their value?

I changed jobs 5 years ago, not to stop flying, but the new job has no travel involved, and although I miss the free ticket to Europe I “earned” via FF miles, I think I have a much better life.

So James, I do feel for you, but I really think the management does not react well to the business model problems. Let’s see how Virgin does from my new hometown of Burlingame, CA, and maybe I’ll add “doesn’t learn from other’s success” to the managment foibles.

The passenger airline business would change dramatically if airline executives (not pilots, not f/a or others going to/from work) took the dare:
a. Arrange and purchase your own tickets.
b. Fly in coach.

The level of contempt for travelers in the passenger airline arena is reprehensible. And it starts at the very top. I love it when it’s reported that AA Pres. Don Carty won’t even fly his own airline, rather takes a private jet to a meeting from Dallas to San Juan, PR. HA! Or United’s Glen Tilton–what a jerk.

On reflection, I do feel sorry for some of the good people at these airlines. They are working so hard–for such losers. Pity.

This means fewer people will be flying. Most people won’t fly for pleasure any more (even if the terrorists hadn’t already made “flying for pleasure” an oxymoron). Business flying will decrease. In places where there is good rail service, more business trips will be made by train. In areas or to destinations without good rail service, trips will be either consolidated for efficiency or eliminated. Businesspeople will discover the benefits of teleconferencing.

Other consequences for the future:

(1) There will be fewer and smaller airlines.

(2) Vacation destinations that depend strongly on airlines will be hurting. Hawaii, for example.

(3) Rail and water transport will grow. (Want to go to the Bahamas? Take a train to Miami and connect with a hovercraft to Nassau.)

(4) Ocean liners may make a comeback. If you can get from New York to Southhampton or Cherbourg in two or three days by ship, and actually have an enjoyable time on board, then why not sail?

US airlines finance far too many of their assets with debt. This is a financially risky business that requires a higher percentage of shareholder’s money. I found it interesting watching the recent takeover bid for Qantas. The bidders proposed changing the debt/equity structure. The Australian Government came right out and said that if the bid succeeds (it didn’t) and Qantas ends up in trouble, there would be no rescue package from the government.

The employees and management of the so called legacy airlines need to realize that they are no longer working for cash cows. The airline industry is extremely competitive and even loyal customers can get po’d and change airlines. The situation described by Nashua is a case in point. If I walked into a retail store and was given that kind of treatment by a cashier, you can bet that after my complaint, the cashier would be looking for a new job. The airline industry is a service industry, its customers deserve some respect, regardless of how much or how little they paid for their tickets. Customers need to realize as well that they have contractual obligations under the terms of carriage, and airline staff need to be accorded the same respect that the customer expects.

When I fly Southwest, I can pick my seat. I can check two bags for free. I get a drink and a snack for free. If I need help, I just call their booking agent and they assist me. Their web fares are not “fake”…meaning the junk fees are added right in on the price.

Heck, two weeks ago when I was afraid I was going to miss a connection after we had to change equipment due to a faulty air conditioner, the FA actually seemed to CARE. She managed to find out that they were HOLDING the other plane for the 15 of us who had to make that connection. She gave everyone on the flight free alcohol for the delay and even OFFERED to check on the connections.

Now, last November I was stuck aboard an NWA flight with mechanical problems. I asked the FA if I could get off and try to get a different booking (since their call center insisted we were in the air) so I could make my connection. She said, “I don’t care what you people do but if you get off, you’re not getting back on!”

I got off, and the NWA gate agents in PVD refused to help any of us who deplaned after being TRAPPED on board for 2 hours. No food. No water. No toliets. And this wasn’t weather. This was…oops….we lost the gas cap. (WHAT?)

I had to go down to their ticket counter and wait for the Continental agent to assist me. Why? Because the bimbos working the NWA counter were “on break” for an HOUR. After one of their planes was stuck on the taramac and people were getting mad…apparently that is the best time to take a break and dump unhappy customers on a partner airline.

Do you see the difference? I have no sympathy for an industry that does not value my time. I’d love to see some of the other money-hungry, rude and arrogant “big lines” treat me the same that Southwest and JetBlue do. Hopefully in the next few years, those two will be the only ones in business.

James, as for US Airways not being on the list, I am not surprised. They cut the most fat after September 11 — 130 aircraft, 15,000 jobs. Plus, they are a lot better managed than people give them credit for. Additionally:

1) Lowest labor costs in the industry
2.) Newer fuel-efficient fleet
3.) They have no material debt payments until 2014
4.) They 3.5 billion in cash

As for charging for sodas — they won’t be the first domestic carrier. Air Canada, SAS, and a bunch of European discount carriers charge for soft drinks.

Airline survival is all about generating revenue and if going to ala carte service charges is how they make it through, so be it. Otherwise, we’re going to be down to three large airlines and I guarantee you fares will remain high even when oil prices steady.

Best,
Anita

I completely understand where you are coming from James, but it does seem they management does not learn from the mistakes of others (or even themselves).

As one of your “poll respondents” said, flying is a necessary evil. To a degree it is true and people will continue to fly. The capacity may not be there, but commerce must continue, and leisure travelers will continue to fly when they can afford it.

In the meantime, if the airlines woudl stop the nonsense of charging for this and charging for that and playing games with fares, fees and surcharges, things woudl be a lot better.

Regardless of what management believes,. the consumer is pretty smart and can see through the smoke and mirrors they are attempting to erect. I can fly non stop on Air Jamaica for $600. Or I can fly connecting with AA for $500. $100 is a lot of money so the initial thought is do American. Well, now when you add in the $30 for my suitcase, and the (likely) $40 I will spend while on layover in Miami on a newspaper, snack and magazine, that $100 is not so vast. So for what is reality–$30 I will fly AIr Jamaica non stop–and be there sooner.

I have said it before time and time again. They need to tie their ticket prices to the cost it takes to fly the planes. It is basic business. Sure every now and then someone tosses out a loss leader and it is an effective marketing tool. But the airlines are tossing out ALL loss leaders and expecting to make any profit on the generosity of the government (bankruptcy), and their customers by nickel and diming them!