Study Shows Lccs Outshine Legacy Carriers

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Survey finds flying cheap can be best

Annual study gives 3 of 4 top spots to low-fare carriers

(CNN) -- Low-cost airlines, which have been giving major carriers financial fits by undercutting their fares, may also be providing a better customer experience than their full-service competitors, according to results of an airline quality study released Monday.

Three of the top four airlines in the survey were low-cost carriers, with JetBlue Airways at the front of the pack, joined by Southwest Airlines and America West Airlines, ranked third and fourth.

The best performance by a full-service carrier was Alaska Airlines, at No. 2.

Brent Bowen, director of the Aviation Initiate at the University of Nebraska-Omaha and co-director of the study, said the results add "further evidence to the emerging performance gap between the legacy carriers and the no-frills network carriers."

Meanwhile, the three largest carriers -- American Airlines, United Airlines and Delta Air Lines -- were closer to the bottom among the carriers surveyed, in 11th, 9th and 12th places, respectively.

Last in the survey was Atlantic Southeast Airlines, an Atlanta, Georgia-based commuter carrier owned by Delta.

The study ranked the 14 airlines that carried at least 1 percent of the 587 million U.S. passengers who traveled by air in 2003, The Associated Press reported.

The annual survey, conducted by researchers at the University of Nebraska-Omaha and Wichita State University, looked at each airline's on-time performance during 2003, as well as the number of customer complaints, denied boardings and mishandled baggage.

The airline industry as a whole improved its performance slightly in 2003 compared with 2002, mainly due to a significant drop in customer complaints, the survey found.

The 2003 survey marked the first time that JetBlue and two other low-cost carriers, AirTran Airways and ATA Airlines, were included in the rankings. AirTran was ranked eighth; ATA, 10th.

When it came to on-time arrival, Southwest had the best performance, with more than 86 percent of its flights arriving on time, the survey said. JetBlue was second. Alaska lost the fewest bags, followed by AirTran, while JetBlue had the fewest bumped passengers, followed by US Airways, according to the survey.

Atlantic Southeast, also included in the survey for the first time, had the worst on-time performance, bumped the most people and mishandled baggage at a rate nearly four times the industry average. Yet the number of its customers who filed complaints was lower than the average for all 14 airlines.

The carriers with the highest rates of passenger complaints were Continental Airlines and Northwest Airlines. Southwest had the fewest complaints, with JetBlue right behind.


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I am not surprised. Talking to customers day after day, it's obvious that we deserve our bottom rankings. The lack of trust of management and the total lack of customer service is what makes this rating well deserved. I know we have some dedicated employees but too many are disillusioned or dont' give a darn.
Management has totally ruined the Aadvantage program with the total lack of availibility to use miles. Why fly AA when you can never fly on the miles? Let's see if we can size this up, $20 billion dollars in added debt since 9/11/01, a work force that doesn't trust management, losing money hand over fist even after all the concessions, fuel prices, it never, never ends. I don't see AA avoiding Chapter 11, just look at the fares. The lowest fare is 158.00 Chicago to Los Angeles, do the math. That's cheaper than an individual's fuel cost if they drove it!!! Even if fuel prices were lower, unemployement at 3 percent, the dow at 12,000 passengers are going to want to pay 158.00. The pricing power (gouging) of the
late '90's will never return. We took advantage of the situation in the '90's and business travelers and corporate policies have responded in kind. Very, very rarely is anyone on a corporate level authorized to fly on a last minute full-fare ticket. It's much cheaper to video conference or fly WN and B6 than pay 2400.00 roundtrip on a walkup coach fare on market like DFW-LGA. It's even extremely difficult for premium members to get upgrades anymore. Look at the free ticket promotions we recently did, there are rarely any seats open. This just totally alienates the customer base even more. Does management ever wonder why we fail so miserably in customer service? It's because many of our policies are so "customer-no-service". How can I deliver good customer service when my answer per our own company policies is No, no, no, no?
 
All Right RESMAN1, What a great attitude for someone who should be applying to B6 for a job. It is obvious you don't like working for AA.
 
Well, my two-cents say that AA and the other big airlines, are just that big.

Big, and impersonal.

As a former TWA'er, I have watched as many nAAtives return from other stations, and no one could care less. On the other hand former TWAers returning to AA are usually greeted by name by former TWAers. I'm certain the same goes with the NAAtive F/A and Pilot groups.

I still enjoy working here, but it's getting harder everyday.

Unless corrected, our passengers will take the brunt of our fustrations.
 
I think Resman is just being a tad too negative! When you see statements like "we're losing money hand over fist even after concessions" you know you have a "Doom and Gloom" AAer on your hands. I seriously doubt we're losing hand over fist right now. AA is the lowest cost "legacy" airline right now and revenues are actually rising! Even with the rising fuel our costs are still falling.
The biggest problem AA and other Legacy airlines have is managing customer expectations. They still want, and expect the World!! When a customer buys a $158.00 ticket on AA he is pissed when he does'nt get a 3 course meal with a linin napkin and free wine. He doesn't care what the price of the ticket was! He wants to be catered to because he's flying on AA (or DL,UA ect, ect). Same guy goes and spends $158.00 on WN or JB, and is happy as a Pig in S--t because he the FA gave him the whole can of Coke or an extra Cookie! Go figure!
 
AAmech said:
I think Resman is just being a tad too negative! When you see statements like "we're losing money hand over fist even after concessions" you know you have a "Doom and Gloom" AAer on your hands. I seriously doubt we're losing hand over fist right now. AA is the lowest cost "legacy" airline right now and revenues are actually rising! Even with the rising fuel our costs are still falling.
The biggest problem AA and other Legacy airlines have is managing customer expectations. They still want, and expect the World!! When a customer buys a $158.00 ticket on AA he is pissed when he does'nt get a 3 course meal with a linin napkin and free wine. He doesn't care what the price of the ticket was! He wants to be catered to because he's flying on AA (or DL,UA ect, ect). Same guy goes and spends $158.00 on WN or JB, and is happy as a Pig in S--t because he the FA gave him the whole can of Coke or an extra Cookie! Go figure!
You are absolutely right! We have pax that complain about not getting meals on flight that never had meals even before 9/11.
 
It's all about managing expectations. Someone, somewhere, keeps marketing AA as a "full service" airline. As long as that marketing persists, AA customers will continue to be disappointed.

Let's face it, nobody is disappointed when they don't get a filet mignon at McDonalds, but the same customer would be furious if they were served a Quarter Pounder with Cheese at Ruth's Chris Steak House. Even if they only had to pay $2.50 for it.
 
AAmech said:
I seriously doubt we're losing (money) hand over fist right now.
Yes, you are. AMR has a whopping $21 Billion (yes....billion!) in debt, more than triple what they had pre-near bankruptcy. Payments on that debt is high, and mandatory and will continue to eat a hole in any perceived raises in revenue you think AA may have.

Micro-managing and just plain poor executive decision making is still sinking AA. Mid-level management is now more than ever cracking the whip across the backs of labor driving morale to the point of non-existence (where it rubs off on the customers) and they call it more productivity. The airline is still too big for it's bank accounts. There is no doubt in my mind that AA will be coming back to the concessions trough before the year is out, if not in the next few months.

The picture is still extremely grim, and execs continue to jump ship, even those with 20 or more years are saying the hell with it and leaving it all behind to start over elsewhere. (however they are taking their golden parachutes with them, let's not fool ourselves about that!) If that isn't a clear enough picture for you, then you just refuse to see the mountain as anything more than a mole hill.

Refusing to see and admit to the real world scenario that is now hammering down on the legacy carriers just means you'll feel the hurt all the more when that reality check bounces!
 
What kind of people are they surveying? My personal experience is the complete opposite.

I usually fly Delta and am very pleased with their service. I've only had one late ASA flight, and that was a 20 minute delay.

I haven't flown JetBlue yet, but I can't understand why it would be better than AA. I don't like watching TV at home that much, and I sure as hell don't want to be on an airplane full of idiot boxes.

I've flown the JFK-LGB route roundtrip twice on AA (just to get a free ticket :D ), and a meal is served in coach. Not a mini-sandwich, not buy-on-board, not a "snack pack", not blue chips, but an actual coach meal. It's good, too (chopped beef and potatoes in the evening, and cereal and yogurt in the morning).
 
These "Surveys" are usually a joke. They're made to support a preconcieved notion that LCC's are vastly superior to the legacy airlines and the Media happily gobbles it up!! They base a lot of their conclusions on DOT data which is farely useless. Remember back a few years ago in the good ole days when AA was making $$$ hand over fist? DOT was showing AA as one of the worst airlines as far as compaints go, Yet AA had a fabulous repeat customer rate and was kicking some serious butt capturing that big buck paying passenger.
Funny how nobody wants to mention AA when its something Good.



For Release: Monday, April 5, 2004
AMERICAN AIRLINES AND ITS EMPLOYEES RECOGNIZED FOR EXCEPTIONAL SERVICE

American Receives its Third Consecutive Five Star Diamond Award from the Academy of Hospitality Services

FORT WORTH, Texas – For the third consecutive year, American Airlines is the only U.S. carrier to receive a 2004 Five Star Diamond Award from the American Academy of Hospitality Services. The academy honored American as a top airline in the global travel industry for its hospitality, outstanding service, and commitment to delivering a premium product for travelers worldwide. American received the award at a presentation ceremony in Berlin.

This year, the award has special significance as it also specifically recognizes American Airlines employees for their exceptional efforts to deliver outstanding service during extraordinary times in the travel industry.

"We are honored to receive this prestigious award, and congratulate our employees for their commitment to provide outstanding customer service during some very challenging times," said Dan Garton, American’s executive vice president-Marketing. "This award is an affirmation of the excellence and professionalism of the people of American Airlines. Their dedication is consistently delivering more of what our customers value – frequent flights throughout the world’s largest network, world-class Admirals Club and Flagship Lounge facilities at airports around the globe, convenient check-in options, the AAdvantageâ program, and great low fares."

"American Airlines has certainly gone the distance to ensure the traveler experiences the highest standards of quality and service," said Mr. Joseph Cinque, president of American Academy of Hospitality Sciences. "We are proud to have American Airlines setting goals for the rest of the world to follow as a recipient of this year’s 2004 Five Star Diamond Award."

The criteria for the Five Star Diamond Award is based on standards of hospitality, service, ambience, attitude and cleanliness. Selections are based upon the recommendations of world travelers and the anonymous visits and evaluations of the academy.

The American Academy of Hospitality Sciences, recognizing worldwide commitment to hospitality since 1949, is the only international organization that awards excellence in the global travel and luxury services sector.

American Airlines is the world's largest carrier. American, American Eagle and the AmericanConnection regional carriers serve more than 250 cities in over 40 countries with nearly 4,200 daily flights. The combined network fleet numbers more than 1,000 aircraft. American's award-winning Web site, AA.com, provides users with easy access to check and book fares, plus personalized news, information and travel offers. American Airlines is a founding member of the oneworldTM Alliance.
 
Funny, but it was the award to Jetblue that got all the publicity. Every major paper, and hundreds of local TV stations mentioned it. And yes it is based on the DOT data--which is available to all. But that means all the other airlines can see it and choose (or not) to try and be at the top of those rankings. The new boys on the block, and Southwest, are trying the hardest apparently. Hat's off to USAir, the top ranked of he majors (they came in fifth). Meanwhile, since Jetblue doesn't overbook, they're always going to win the denied boarding category. But as they point out, it also makes for less stressed-out gate people, who therefore are likely to be nicer to passengers. Simpe, yes? So why don't the big guys smarten up?
 
Whadayano said:
So why don't the big guys smarten up?
Very simple . . . . Revenue! Oversales generate revenue that the airline gets to hold on to. They fork over a voucher and hope the holders don't use them. The passengers may be stuck at the airport, but the airline gets the revenue!