Box cutter blades found on Delta flight from Tokyo to Oregon

by Tom Johansmeyer on

A plane was searched top to bottom upon landing in Oregon after the crew found box cutter blades on it. Delta, recently named the worst airline in the United States, engaged the help of FBI, TSA and Customs and Border Protection officials when Flight 90 arrived from Tokyo, with 155 passengers and a crew of 10.

According to MSNBC:

The flight crew “opted to contact authorities and request they meet the aircraft upon arrival as a result of some box cutter blades found onboard while the aircraft was enroute,” according to Delta spokeswoman Susan Elliott.

The report adds that it wasn’t yet known how the box cutter blades wound up on the plane.

[photo by PatCastaldo via Flickr]

Delta says customer service isn’t dependent upon costs

by Tom Johansmeyer on

It looks like Delta has some strong thoughts on airfare and customer service. The airline identified as the worst in the United States is now saying that customer service shouldn’t be related to operating expenses – well, at least that’s the implication of the new ad the airline is running on New York City subways: “Customer service shouldn’t fluctuate with the price of oil.”

The fact that airlines generally aren’t famous for customer service is well-established, and many excuses reasons are given, ranging from regulatory constraints to a lack of cooperation from passengers. Of course, cost always comes into the equation, too. Despite a strong year for air carriers in 2010, history shows that this is a volatile industry, and it’s always necessary to keep an eye on expenses.

It isn’t unusual to see airline industry employees cite cheap flights as a reason for the decline in customer service: what else do passengers expect, right?
This is what makes Delta’s move so interesting. A direct statement that service shouldn’t be constrained by underlying expenses (and thus profit margins), the ad I saw on the 3 train yesterday morning takes a bold stand. Delta is taking conventional wisdom head-on (well, airline industry conventional wisdom) in a very public way.

It should be interesting to see if this leads to a change in the airline industry employee population’s position on the relationship between cheap tickets and passenger expectations. For Delta employees, leaning on the traditional rationale results in a direct contradiction with the company’s stated message. Though the sentiment may not trickle down to employees of other carriers, their being vocal about the informal “expense-to-service” ratio inherently puts them at a disadvantage relative to Delta’s claim. The subtlety may not reach the average consumer (especially those who don’t come into contact with Delta’s ads), but the implication is clear.

Doubtless, it makes sense to draw distinctions between advertisements and expectations, and any change at Delta based on this messaging will take time to implement (let’s be realistic – big companies do tend to move slowly). Nonetheless, it will be interesting to see how this situation unfolds.

So, tell us what you think: do you think customer service expectations in the airline business should be linked to the price you pay for a seat? Leave a comment below!

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.

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]

FBI charges passenger for in-flight grabbing

by Tom Johansmeyer on

You need to keep your hands to yourself when you fly – it’s just that simple. Not only is it smart and appropriate, but it’ll keep you out of trouble. Well, that’s what Alpharetta, Georgia resident Ranchhodbhai Lakha learned the hard way.

This 61-year-old passenger faces a variety of sexual assault charges because he allegedly groped a 20-year-old woman on a flight from Dallas to Atlanta. On September 28, 2010, according to an Associated Press report, Lakha touched her while she slept, below her waist. She woke up during the act, and told Lakha to stop doing it. He tried again, and the woman notified a flight attendant.

The worst part: according to an FBI investigation, Lakha may have a history of this.

[photo by banspy via Flickr]