Four American Airlines baggage handlers charged with theft

by Scott Carmichael on

If you recently passed through Philadelphia International airport, and arrived at your destination with items missing from your luggage, then you may have one of the fine gentlemen on the right to thank.

The four were arrested and charged last week with “multiple counts of criminal conspiracy, theft, unlawful taking, receiving stolen property, and attempted theft”. The men were part time employees of American Airlines, but may have screwed up last month when the airline saw signs of a problem.

Detectives started an investigation and set up security cameras. When the cameras caught the men helping themselves to electronics, cameras and jewelry, police arrested them. Each of the men had been working baggage for American Airlines for nine years.

A court date has been set for December 8, and the men were all released until then.

The most important lesson from this incident? Never, ever pack valuables in your checked luggage. Checked bags are for clothes and cheap souvenirs – anything of value should always go in your cabin bag, or be shipped to your destination.

American Airlines and Orbitz tangle over fees and booking process

by Tom Johansmeyer on

Do you use Orbitz to book flights on American Airlines? Well, your online travel buying habits may have to change. American is getting tough with Orbitz – and other online travel agencies – about how they do business together. For now, you can keep buying tickets on American via Orbitz, but a change could come as early as December 1, 2010.

The rhetoric is already high, as you can see in a recent Bloomberg report. Barney Hartford, the CEO of Orbits, said, “This is a broad attack by American on the travel distribution landscape.” The airline wants the likes of Orbitz to pull flight and fare info directly, rather than through a global distribution system.

So, is this all saber-rattling, or are American’s threats to pull out of Orbitz real. Bloomberg reports:

American can’t afford to pull its content off all the global distribution systems, and its conflict with Orbitz is a “private negotiation that suddenly became public,” said Jay Sorensen, president of aviation consultant Ideaworks and a former marketing director at Midwest Airlines.

Sorensen said he doesn’t “see an agenda here for American to remake the travel industry.” He indicated that this is part of a prudent negotiating strategy but noted that Orbitz may call the carrier’s bluff.

There’s a lot at stake – hundreds of millions of dollars, in fact. American has paid nine-figure sums to companies like Sabre and Galileo to gain access to online travel agencies and wouldn’t mind bypassing them and saving a few bucks, it seems.

So, will negotiations turn into a game of “chicken” as the end of the month approaches? Let’s wait and see how this develops.

[Via USA Today, photo by Deanster1983 via Flickr]

Airlines not alone in poor customer service studies

by Tom Johansmeyer on

The Airline Quality Rating report was released last week, exposing the five worst airlines in the United States. It’s fun to beat up on the airlines … as it is to beat up on other companies and industries notorious for poor customer service. So, this made me wonder just how the airlines stack up against everyone else.

Back in August, the American Customer Satisfaction Index rated hundreds of companies and came out with the results. Some airlines are in there, of course, but they aren’t alone. I took a look at the bottom of the barrel – 18 companies featured by Business Insider – and saw that the airlines were well-represented but far from dominant.

Telecommunications companies led the pack, accounting for a third of the list, with airlines next – four companies accounting for 22 percent. Banking followed with 17 percent. Strangely, social networking contributed two companies, with both Facebook and MySpace getting poor marks for customer service. Insurance, restaurants and utilities each contributed a company.

The airlines that got the nod will look pretty familiar: in fact, they’re four of the five identified in the Airline Quality Rating report. American Airlines took the #12 spot, immediately behind Facebook and MySapce. Delta and US Airways took the next two positions, with United Airlines at #17.

The worst company for customer service was AT&T Mobility, with DirecTV and Citibank behind it.

“America’s Meanest Airlines” exposed

by Annie Scott on


Today on Yahoo Travel, “America’s Meanest Airlines” were revealed. The story, “based on the Airline Quality Rating (AQR) Report, which covers 18 domestic carriers,” lambasts American Airlines, United, Delta and several other airlines, including four regional carriers.

The Airline Quality Rating Report is conducted jointly by professors at Wichita State University and Purdue University. The report is generated using “subjective surveys of consumer opinion that are infrequently done,” with the goal of creating “a rating for individual airlines with interval scale properties that is comparable across airlines and across time.” The AQR Report has been around since 1991 and issues yearly results in a month-by-month format with data on the rate of customer complaints, denied boarding and more.

Sins such as baggage fees are cited in the Yahoo Travel article, as are additional sources of consumer complaints. For example, “this year AA has had frequent incidents of mishandled baggage with an average of 4.07 reports per 1,000 passengers, according to the Air Travel Consumer Reports.” That’s a brutal ratio by anyone’s standards.

The 2010 AQR Report is available online if you’d like to investigate further yourself.

[via Yahoo Travel]

[Photo by lazlo-photo via Flickr.]

Airline profits may mean more elbow room for a little while

by Tom Johansmeyer on

The airline industry wants to thank you. Last year, it was mired in despair. The post-financial crisis recession left the carriers beleaguered and desperate for a turn of fortune. Corporate and leisure travel had fallen precipitously, and doubling down on extra fees, though prudent for profits, alienated both those considering a flight and the passengers with little choice but to hit the road. The brutality of 2009 was evident, and it seemed as though all there was for 2010 was the hope for something better.

Well, hope paid off.

Three quarters into this year, money is again beginning to flow, as a result of (finally) climbing fares, additional fees and an increase in passenger traffic. United Continental, Southwest and JetBlue have reported strong profits for the third quarter using a variety of tactics, but an increase in sales and higher prices appear to be the universal driver. And, this may translate to a bit more elbow room for you.
According to the Associated Press, airlines are beginning to bring back some of the routes they cut last year, as indicated by decisions at Delta and American Airlines to hire more flight attendants. The challenge, however, will be to increase capacity (and thus headcount) without imperiling this year’ hard-won profits.

The business of satisfying pent-up demand isn’t easy for the airline sector. After all, capacity can’t be added one seat at a time. Restoring a route to handle more passengers comes with it the obligation to fill the plane (to the extent possible) each time, in accordance with revenue per available seat mile (RASM) targets.

Nonetheless, the carriers seem ready to rise to the challenge. JetBlue is amping up fourth quarter capacity by up to 10 percent, with Delta looking at an increase of 5 percent to 10 percent. This follows even faster growth in September, according to the Associated Press:

Still, most of the airlines saw traffic rise even faster than capacity in September suggesting they have enough business to support the additional flights. The only exception was Delta, which added capacity slightly faster than traffic rose.

The moves come in anticipation of a strong 2011, according to Ray Neidl, an analyst for Maxim Group. He tells the associated press that the growth in capacity “is a little more long-term,” adding that “[d]espite the lackluster economy, it’s going to be a big year for airlines, especially as consolidation kicks in.”

So, what does this mean for the flying public?

Well, you may not have to occupy that middle seat for a little while, and the odds that someone else will be in it may be improving. The increase in capacity necessarily precedes an increase in sufficient demand to make it profitable, so enjoy it while you can! If the airlines can’t fill those new seats, a return to austerity could send you back to sharing an armrest.

[photo by Joe Shlabotnik via Flickr]