How does NWA rank?

Necrophilias

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Mar 7, 2006
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Perhaps this survey will confirm the downward trend of NWA.

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Air travel
In poll, NWA is last airline
Customer satisfaction loss blamed on cuts

May 16, 2006

Email this Print this BY JEWEL GOPWANI

FREE PRESS BUSINESS WRITER
Related articles:

• Airline rankings

• Consumer ratings

Complaints

People surveyed about airlines cited the following complaints:




Lost luggage.




Time it takes to claim bags.




Food, quality of meals and having to pay for snacks.




Accuracy of flight delay information.

How survey works

To come up with the American Customer Satisfaction Index, the University of Michigan's business school surveys 20,000 people every quarter. That's about 250 per company, said Claes Fornell, the index's director.



Participants are asked questions about the value and the quality of a product.



While consumers were frustrated by the airlines, they were more satisfied with other industries, including wireless service, hotels and hospitals.



All of those industries helped boost the index 0.8% to 74.1 on a scale of 100.



Just under 1% might not seem like a lot, but a bump of that size usually indicates that spending will increase the following quarter.



But this time, Fornell says, he's hesitant to predict a spending boost as household debt, interest rates and energy costs increase.



"I would say consumers are willing and they actually would like to spend more and consume more," Fornell said. "But their means to spend -- I don't see where that will come from."



JEWEL GOPWANI



As Northwest Airlines Inc. struggles financially, so does its quality, say passengers in a study due out today.

Northwest ranked last among airlines in customer satisfaction during 2005, the same year that Detroit Metro Airport's largest carrier filed for Chapter 11 bankruptcy, flew through a mechanics strike and cut workers' pay, according to the American Customer Satisfaction Index, from University of Michigan's Ross School of Business.

Customer satisfaction for the entire airline industry is on the decline as many carriers slash costs by cutting wages and by charging for things that were once free for fliers.

The phone surveys of about 2,000 people were taken between January and March but asked customers about their experiences last year. Many said they were frustrated with several Northwest services, including lost luggage, the time it takes to claim luggage and having to pay for snacks, said Claes Fornell, director of the index.

"You can only reduce costs so much before it really starts hurting you," he said.

Across the industry, more passengers are boarding planes than last year, but there are fewer workers in the industry. In March, Northwest's head count dropped 20%, or 7,800, to 31,318 compared to last year.

Customers did see a value in buying a Northwest ticket. The airline's score for price dropped only one point to 63 out of 100. The study's margin of error of plus or minus 1.8 percentage points could account for that change, Fornell said.

But the airline's score for overall quality dropped 3 points to 66.

Northwest's score for customer loyalty also dropped 3 points to 67.

Before his last trip on Northwest in April, 66-year-old Canton resident August Miller would have agreed with those surveyed.

But a first-class seat to Las Vegas that Miller bought to use up his frequent flier miles changed his mind.

He said workers were friendly and he had no trouble getting his luggage.

"You go in with expectations for the worst and it turned out pretty good," he said.

In a statement, the Eagan, Minn.-based company said, "Northwest's employees have consistently maintained their focus on meeting the needs of our customers during difficult times."

Northwest cited 2006 U.S. Department of Transportation statistics that put them in the top three for on-time arrivals, properly handled luggage and lowest number of complaints compared to other major carriers from January to March.

"Our employees understand that we are a customer-service business, and we are confident that they will continue their focus on meeting the needs of our customers," the company said.

Contact JEWEL GOPWANI at 313-223-4550 or [email protected].

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