Continental sham divorces pass court test

by Tom Johansmeyer on
Back in May, Continental Airlines sued nine pilots for getting sham divorces. The marital splits were part of a play for pension benefits, with the “ex” collecting while the pilot keeps earning. It’s good cash if you can find it, but Continental wasn’t thrilled at having to bear that extra cost. On Monday, a federal judge told the airline to live with it, ruling in favor of the pilots. Regardless of the pilots’ intentions, the judge said there wasn’t anything that would let him rule in favor of the airline.

Continental is considering an appeal, which makes sense given the money involved. The airline paid between $10 million and $11 million in pension distributions to the nine pilots, with some individual payments reaching as high as $900,000. In some cases, the spouses remarried after the check cleared.

Well, $11 million … do you know how many bags of peanuts pretzels that buys?

Airline fees continue, necessary evil

by Tom Johansmeyer on

Yes, you’ve heard about this all year, and you’ll probably hear about it for a while to come. Airlines are still looking for ways to pull every dollar they can out of your wallets, but the reality is that they have no choice. Seven of the nine largest airlines in the United States had a rough time in August, making these measures more important than passengers might realize.

The second bag, according to an article in USA Today, remains the most popular fee target for airlines. Continental Airlines, US Airways and American Airlines recently announced that they are going to charge for this, and Hawaiian Airlines is going to charge passengers for the first checked bag on flights between islands beginning September 14, 2009.

I understand charging for checked luggage (the money has to come from somewhere), and I honestly don’t see charging for a second bag as a bad idea. Frankly, it can be pretty frustrating to stand in line behind someone who’s fumbling with more luggage than he or she can move along. The first bag? That’s a bit different. This fee could cause passengers to push the envelope with carry-ons, which is likely to trigger arguments with gate agents and flight attendants, tie up the boarding process and result in hefty doses of frustration for everyone else on the plane.

I’m more a fan of Southwest‘s new policy, which will put passengers at the front of the line – even ahead of frequent fliers and those paying premium fares – for a fee of $10 each way. Since the airline doesn’t assign seating, this small sum offers the chance to get the best seats on the plane. I’m not crazy about the notion that it comes at the expense of frequent flier comfort (alienating your best customers is rarely a good idea), but the price is low enough that these passengers would probably pay it anyway. For this perk, I’d definitely pay more than $10.

There’s money in extra fees, as we’ve discussed on Gadling in the past. Some analysts predict that these charges could be good for more than $2 billion a year for an industry that could definitely use it. The airlines need to be careful, though, as going to far could lead to disgruntled (and lost) customers.

Passengers, however, should be realistic. Fares are cheap. To make ends meet, airlines have been cutting flights and services, generally making the experience incredibly uncomfortable.

In fact, taking this approach to the extreme might be a good idea. Airlines could offer dirt-cheap prices for passengers who want nothing more than to get from one place to another. Then, if you want to enhance your experience – with a meal, cocktail or better seat – you can pay a little more. This à la carte approach would empower passengers to create their own experiences, ultimately improving customer service and airline responsiveness. To an extent, it’s already happening, but to make the strategy work, it would have to become part of a cohesive offer.

That said, airlines would have to be careful with their general cuts. Fewer flights, less legroom and degraded customer service affect everybody, and there’s no way to work improvements in based on price (with the exception of flying in business or first class, which involves a considerable price gap). Finding a middle ground could change both the airline industry and passenger perception of the flying experience.

Rochester tarmac delay: “lack of common sense”

by Tom Johansmeyer on

“There was a complete lack of common sense here,” U.S. Secretary of Transportation Ray LaHood said in a statement released yesterday. “It’s no wonder the flying public is so angry and frustrated.”

When 47 passengers were stranded overnight on the tarmac in Rochester, Minnesota, the pilot repeatedly asked for permission to deplane them. All the pilot wanted was to get the passengers off the plane.

Airline dispatchers refused, because TSA officials had left for the day … and not realizing that the passengers could be released to a “sterile” area. Passengers on the ExpressJet flight (which it operated for Continental) were stuck in the plane for close to six hours with nothing to eat but pretzels.

The pilot clearly advocated for his passengers and deserves the endless respect of anyone who’s been stuck on a plane. LaHood recognizes this fact, saying, “We have determined that the Express Jet crew was not at fault. In fact, the flight crew repeatedly tried to get permission to deplane the passengers at the airport or obtain a bus for them,” Secretary LaHood said.

LaHood continues, “The local representative of Mesaba Airlines improperly refused the requests of the captain to let her passengers off the plane. The representative incorrectly said that the airport was closed to passengers for security reasons, which led to this nightmare for those stuck on the plane.”

The representative of Mesaba, which is a wholly owned subsidiary of Delta Airlines and was the only airline on hand to assist Continental at the airport, told the pilot that the airport was closed and that there was nobody from the TSA to screen the passengers. This was incorrect, as passengers can be released as long as they remain in what the Transportation Department calls a “sterile area.”

Interviews with the passengers, flight crew and airport personnel have been conducted by the Transportation Department’s Aviation Enforcement Office, and the team has reviewed the audio recordings of conversations between the plane and the dispatcher. And, Continental’s customer service commitment, contingency plan for flight delays and contract of carriage were reviewed, making this, according to LaHood, “one of the most thorough investigations ever conducted by the Department’s Aviation Enforcement Office.”

Pending the results of the investigation, the Aviation Enforcement Office is considering the appropriate action to take against Mesaba. The group expects the investigation to e finished in a few weeks.

The Transportation Department has proposed regulations requiring contingency plans for airlines to adopt to address lengthy delays on the tarmac. These plans would then be incorporated into their contracts of carriage. The department has also asked for comment on whether it should set a single time standard after which carriers would be required to allow passengers to deplane. The Transportation Department intends to use the results of the Rochester investigation to help formulate a final rule that will provide airline passengers with better protection.

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Airlines and social media: dialogue waiting to happen

by Tom Johansmeyer on

Social media means that airlines just have another place where they can be raked over the coals. We complain to ticket agents. We complain to gate agents. We complain to customer service reps. And now, we can complain to the world, thanks to the likes of Twitter. I, for example, follow @DeltaSucks, though there hasn’t been any action on it in several months. I don’t just listen, though. When I’m stuck in an airport, I tweet relentlessly, and I know I’m not alone.

So, what’s an airline to do about this? And Facebook? And YouTube?

The attack is coming on all fronts, and an industry that’s been beaten up so severely and so often has few options. For now, the response is limited to tweeting fare deals, but obviously, that does little to address the continued stream of negative exposure to which the airlines are subjected.

When in doubt, the philosophy on social media complaints appears to be silence. Continental and American Airlines wouldn’t comment on recent tweets from disgruntled fliers, according to a Reuters report. They are monitoring and claim to be responding, but that’s about all. Billy Sanez, who manages social media for American’s parent, AMR, believes that these platforms make it easier to open a dialogue with passengers … but where is that dialogue?

When I got pissed off at JetBlue a year ago, I wrote about it on my personal blog and heard nothing from JetBlue. But, I did hear from other passengers … one of whom was afraid to say too much because he was still in transit and didn’t want to risk angering the airline. This level of paranoia may be extreme, but the implication is clear: passengers could find even a small blog, but airlines are squandering a chance to really engage the people who pay their bills.

Christi Day, who takes care of Twitter and Facebook for Southwest Airlines, told Reuters, “The main thing that our customers need to know is that we hear them.” But, again, there is no discussion of what the airline is doing about it.

Customers finally have a voice, and as we saw with “United Breaks Guitars,” it can get pretty loud. While the airlines may be listening, we’re still waiting for the second half of “dialogue” to happen.

26 hurt on turbulent Continental flight

by Katie Hammel on

On most flights, turbulence is a minor inconvenience. You have to return to your seat and buckle in, and you may have to wait a little longer to get your next vodka and cranberry (oh, is it just me that needs a cocktail, or three, to relax on a plane?). Planes are generally able to avoid the worst of the bumps, thanks to radar and reports from other planes in the area. But sometimes, turbulence strikes seemingly out of the blue, and that may be when it is the most dangerous.

This could be what happened on Continental Flight 128, which hit severe turbulence on its way from Brazil to Houston and was forced to make an emergency landing in Miami early on Monday. The plane encountered the turbulence just northwest of Puerto Rico and landed at Miami shortly after 5:30 a.m.

The turbulence was so rough that it catapulted passengers from their seats, slamming them into luggage bins and bashing their heads into overhead seat controls, cracking the panels and breaking glass in the reading lamps. 26 people were injured. Four of the injuries were reported as serious and 14 people were taken to the hospital.

Passengers stated that the turbulence didn’t last very long, and that after it had passed everyone remained calm. There’s no word yet on what exactly caused the turbulence, but the FAA is investigating.

[via ABC News]