Thursday, July 10, 2008

Airline woes

There are days when I really think that the airline industry is in line for a huge correction. Today was one of those. Twelve airline CEO's issued a joint letter today in which they blame all of the rising costs on fuel prices, specifically on market speculators. Fuel costs have certainly hurt the carriers (though I think they're using speculators as a scapegoat). That's not the big problem, though.
Americans can see what's happening at the fuel pumps. We can understand that oil is much more expensive now and the link to more expensive flight operation costs is an easy one. If the airlines simply responded by raising prices accordingly, there would be complaints but not outright hostility. The problems lie elsewhere.
  • Too many fees. Customers want simple to understand prices. One high price at the beginning and free water and baggage is better than a slightly lower fare and the feeling of being nickeled and dimed.
  • Easier to understand pricing rules. If you want to change a flight you can run afoul of about a dozen different rules. Days of the week, advance purchase, Saturday night stays, even the time of day all factor into the flight cost. It's gotten so complicated that even travel professionals (including me) have to call the airlines regularly to make sure we're charging things correctly. Exchanging a sweater at Target is easy. That should be the airlines model.
  • Lack of basic service. Adding to the problem of being to complicated, is that it's tough to find an actual agent to help you out! This is especially true in times of emergency and delay when people need the help the most. Technology and especially more work-from-home agents should give the flexibility to fix this. Get on it!
  • Lack of hands on service. Flight attendants and gate agents are the face of your company when dealing with the public. Get good employees there, train them well and then (most importantly) give them the power to actually fix problems. That might mean freebies. It will always mean finding people who actually want to help others.
Ultimately, some of the problems with the airline industry have been caused by propping up sick companies. We should let some of the big ones merge and try to solve their problems together. We should let other fail and go bankrupt. Someone else will take their place. Plenty of people still want to fly and someone will take their money.

1 comment:

Alfred T. Mahan said...

Waitasec, you mean my shares of Braniff and TWA aren't any good any more? Why wasn't I informed of this?