Airline extra fees: $2 billion in three months

Airline fees are definitely not going away anytime soon – not after the second quarter it gave the airline industry. Carriers in the United States raked in $2.1 billion in fees and extra charges in the second quarter of this year, a 13 percent year-over-year surge. And, it was good enough to deliver the sector’s first profitable quarter since 2007.

Well, here’s the worst part for you: most of it came from checked baggage fees. This annoyance was good for $893 million in the second quarter of 2010, a gain of 16 percent from the second quarter of 2009. Reservation fees were good for $594 million, with ancillary revenue (e.g., frequent flier mileage sales and pet fees) reaching $618 million.

Delta benefited most from the fees that passengers hate most, at $682 million. American Airlines and US Airways were next.

[photo by cliff1066 via Flickr]

Galley Gossip: 5 reasons flight attendants don’t serve first class predeparture beverages

You’ve boarded a flight and you’re feeling pretty relaxed sitting in that big comfy first class seat. Sucka, you think to yourself as a couple of passengers check you out on their way to coach. Glancing at your watch, you wonder where the heck the flight attendant is because you’re dying of thirst and shouldn’t she be offering drinks right about now!

Predepartures. That’s what flight attendants call the drinks that are served before takeoff to passengers seated in business and first class. If there’s time flight attendants will walk through the aisle and take individual orders, but time is the keyword here. With so many full flights staffed with minimum crew, there’s usually not enough time to check the emergency equipment, set up the galley, hang all the coats, get passengers situated AND serve predeparture beverages. This is why flight attendants might choose to do a one shot service and offer passengers Champagne (if we have it), orange juice, and water- or nothing at all. Because it’s more important to get flights out on time than it is to serve drinks before takeoff.

What most passengers don’t realize is that it’s against FAA regulations for an agent to shut an aircraft door until all the overhead bins have been closed. If the agent can’t close the aircraft door on time, the flight will be delayed. If the flight is delayed (even by a few minutes) someone will have to take the blame. This means someone will get written up. If an airline employee is written up too many times for causing a delayed departure they might very well lose their job. On time departures are a big deal in the airline industry. So that gin and tonic the passenger in 3A is crying about is not a concern if passenger 23D refuses to sit down and passenger 14E can’t get her suitcase inside an overhead bin and the flight attendant working in the back is calling up front to let someone know there are seven bags on their way up that need to be checked.

Here are a few other reasons flight attendants might not serve you a drink before takeoff….

1. DELAYED BOARDING: Boarding is even more chaotic when a flight is delayed. If passengers are blocking the aisles waiting to get to their seats, flight attendants aren’t going to jump over them in order to serve drinks.

2. NO CATERING: Everyone is seated and the flight attendants don’t look very busy. Why aren’t they serving drinks? If the catering truck hasn’t come to swap out the carts they have nothing to serve.

3. THE GALLEY ISN’T SET UP: The catering carts do not come on board ready to go. Flight attendants have to organize them first. If we don’t do this during boarding, the service during the flight will be delayed. Besides organizing the carts, we also have to break up several bags of ice, count the meals, load the ovens, and make sure we have everything we might need for the service in flight. The one time I didn’t do this we took off without dinner plates and I had to serve first class passengers their entrees on cookie plates.

4. MINIMUM CREW: Nowadays most narrowbody aircraft (one aisle) are staffed with minimum crew. This means if we’re not greeting passengers at the door, we’re busy setting up a galley. In the past we used to have extra flight attendants on board to lend a hand to passengers who might need it during boarding and help serve food and drinks in first class. Not the case anymore.

5. DRY FLIGHTS: Some countries do not allow flight attendants to unlock the liquor carts until after takeoff. There are even a few cities in the U.S. where it’s against the law to serve an adult beverage on Sunday before noon.

Photo courtesy of Kevin H

Germany creates new passenger fee – ecological departure tax will cost up to $60

When governments need new ways to create quick and easy cash, they’ll often invent new taxes and fees. Take for example the German government – when they needed a way to close some gaps in their budget, they invented the “Ecological air travel fee”.

Disguised as a “green fund” and taking effect on January 1, 2011, passengers departing Germany will be expected to pay €8, €25 or €40, depending on the length of their flight. This means that a family of four, flying from Germany to the United States, will be charged €160 ($208) in addition to all the normal departure taxes, security fees and fuel surcharges.

Add to this the recent U.S. Tourism Promotion Fee, and you are quickly looking at $260 in fees before you even board the plane.

Of course, German airlines are not thrilled – and are rightfully worried that passengers will stop using Germany as a transit country, opting for stops in neighboring countries instead. Some passengers may even fly to countries like Holland or France and take a train to Germany.

Naturally, the government does not expect that airlines will suffer from the new tax. The fee is expected to raise €1 billion ($1.3 billion) annually.

[Photo: AP]

Why don’t airlines call us customers?

Language shapes reality – there’s no way around it. It is evident in the general absence of profanity in children (at least in front of their parents), forgoing certain expressions except among friends (or, for some people, completely) and the selection of particular phrases for impact. Words have meaning, and thus they have power. So, it makes sense for a major company or industry to develop its lexicon around the turns of phrase that will work to its advantage: if words are inherently powerful, then a company should try to harness that power to pump up its revenue and profits.

With all this linguistic engineering, from hotels to coffee shops, airlines still haven’t gotten on board. Rather than even acknowledge the exchange of payment with an appellation like “customer” – and without having to use a word that implies a high level of service like “guest” – the airline industry clings to the relationship-agnostic “passenger” to identify the person who provides payment in exchange for the use of a tiny seat for a specified number of miles to a particular destination. And among the insiders, it often gets shredded down to “pax,” an expression used in public, not just behind the galley’s closed curtain.

Given that the realities of air travel – heavily influenced by market, regulatory and infrastructure constraints – are unlikely to change anytime soon, could an end run via language provide at least a little relief for employees and pax passengers customers?The Power of “Guest”
Perhaps the most famous story of choosing words for a reason is that of Starbucks, which eschewed “customer” in favor of “guest.” It signals the company’s commitment to treating well the people who keep it in business and deliver for its shareholders. Not only is this word, “guest,” a tool for managing internal perspectives, you hear it every time someone steps away from the cash register, when the barista calls for the “next guest.”

The use of “guest,” of course, is reminiscent of the hotel business, which usually has a higher standard than other consumer-focused businesses for customer service. Especially as you move up-market, hotel service levels are the gold standard for every other sector, with guests expected to be greeted by name and the smallest perceived shortcoming remedied immediately.

When I was a hotel software consultant, on one of my first projects, I remember getting a “when in Rome” lecture from my boss while we were in the hallway at the Renaissance Orlando Resort: “Say hello to any guest who’s within six steps.” When I asked why, he explained that that was the hotel standard, and since we were there on business with the hotel, we had to show the same courtesy to guests that hotel employees would.

Oh, and we had to smile – not a natural gesture for me, I confess.

We did this because the property’s employees did this, and I’m sure they had their share of bad days, personal stresses, sleepless nights and compensation complaints. The hotel staff found a way to overcome all that could get in the way and still delivered an outstanding guest experience.

So, “guest” has taken on a life of its own, with powerful implications, thanks to the hospitality industry, that have spread to other corners of the business (and consumer) world. The word indicates to the person writing a check or whipping out a credit card that there is an exchange of payment for services, and that the organization on the receiving end of the payment is more than happy to provide the services – in a manner that is made as enjoyable for the guest as possible.

What the Airlines Have Been Missing
The erosion of amenities and increasing of fees have made an already unpleasant experience worse. Yet, the airlines are doing something we’ve found in hotels for years, from internet access to gym use to spa and resort amenities. It’s starting to feel like there’s a double standard … what’s the deal?

Well, simply, the hotel business has done a better job of making the consumer feel like he’s in charge. Think back to the whole “power of language” discussion above. Would you rather be guest or a passenger? It doesn’t take long to determine which feels better.

The changes in hotel amenities and fees have not gone unnoticed – and they certainly have not passed without criticism. Yet, they haven’t sparked the outrage triggered by similar developments in the airline sector. Some of this, doubtless, is the result of an advantage that hotels have. They aren’t bound by the same regulatory restrictions as airlines, allowing them to deliver a slightly more comfortable and efficient experience (think of how bad it would be to have to go through the equivalent of an airport just to get to your hotel room!). Also, you can leave your hotel room whenever you want, while you’re stuck on a plane until you’re told you can get off.

On the other hand, there are areas where airlines have the space to improve and could. Customer (passenger?) service training for anyone coming close to the consumer should be mandatory, extensive and a major part of how employee performance is evaluated. It must be made a priority, with consequences for falling short (as there are in any other profession). Even when a customer is resisting the rules (e.g., not putting up the tray table right away), there are many ways to respond. The first approach doesn’t have to be curt.

Airlines definitely start out behind the eight ball, but it doesn’t mean they are out of options. There are plenty of small steps that can be taken to make the flying experience a little better … for the customer. And, this starts with how employees think and speak.


Take Control of the Language First

If I were still in the business of collecting a large fee (most of which went to my employer, not me) for giving advice – and were hired by a major airline – I would start by suggesting a simple word swap. Stop calling us passengers, and start calling us customers … or guests. I might even recommend throwing in words such as “valued” and “appreciated” a bit more. It sets the tone for all subsequent interaction.

This is a small step, but that’s often where transformation starts. To carry the concept forward, the airline would then have to realign its services with this concept. Tone of voice, addressing the guest by name and making him feel welcome would implement the linguistic change, keeping it from becoming an empty gesture.

Does it work?

Well, I remember being called “Mr. Johansmeyer” (somehow pronounced correctly, to my surprise) at the Ritz-Carlton Naples back in June 2008. It’s stayed with me. Also, when I was doing my weekly runs from Boston to Omaha in 2002, the gate agent, who had become accustomed to seeing me on Friday afternoons, would greet me with a smile and the sentiment, “Going home, Tom?” It made my flight home even better. If it can reach a perpetually annoyed business traveler (which is what I was in 2002), then I’m sure it would resonate with just about anybody.

By moving from passenger to guest, and delivering on the service obligation implied by the latter, the airlines could make considerable progress toward remedying their reputations with their customers. Before long, small measures accumulate, and real change takes hold. It may sound trivial, but this is a foothold that airlines (and airline employees) could use immediately.

Treat us like customers, and the rest will begin to fall into place.

[photos by joiseyshowaa via Flickr, swanksalot via Flickr, Tom Johansmeyer, Tom Johansmeyer]

Video: Delta 747 and airport tug battle it out at JFK airport

Looking for a little aviation entertainment for the last day of the work week? Check out this video clip, shot at JFK airport, showing a Delta Airlines 747 take on a tug. Care to guess who’ll win?

Fast forward to the 0:45 mark to see the action, and a bunch of ramp workers running for their lives. Now, oddly enough, none of this made the news until Live Leak obtained the footage. Apparently the incident wasn’t important enough to be released by the airport or airline, which hopefully means nobody was injured.