Customer Relations of Airlines Written By: Ashley Schuetz
Ashley Schuetz Schuetz 1 SP 405 Customer Relations of Airlines Abstract The airline companies have been struggling continually since September 11, 2001 (9-11). The data shows that they are struggling financially and with making sure they depart and arrive on time. The statistics show that people are starting to fly again and the airlines need to keep up with this. Now, with so many people flying again after 9-11 the airline companies need to make sure they are keeping their customers happy. They can do this by using a two-way symmetric model of Public Relations to keep its customers informed and happy. They need to do this by keeping the communication open between them and the customer. Introduction Business people, journalists, celebrities, children, grandparents, moms and dads, families, and friends all travel whether it is to the big news story, the next concert or film taping, to get together with friends or family, or for the family vacation. When they are traveling too far and don t want it to take days to get there they have no choice but to fly. Whether its first class or just a coach passenger all customers of the airlines deserve the very best when it comes to their flying adventure. They deserve to be safe, arrive on time, receive their baggage when they arrive at their destination, and of course to be comfortable during the flight. In this paper the author hopes to address the factors that affect airline companies and their customers. She wants to reveal facts about airlines that habitually arrive late to its destinations and the one s that arrive on time. She also plans to analyze the customer service plans of two major airline companies, American Airlines and Delta.
Schuetz 2 Problem Since September 11, 2001, the biggest factor the airlines have had to face is the fact that fewer people are flying. This has hurt many companies by causing bankruptcy and layoffs. Delta, one of the major airline companies is currently facing the layoff problem and many Delta employees at the Kansas City International Airport in Kansas City, Missouri are expected to be laid-off after the first of the year. It wasn t until just recently that the number of people flying has started to rise which is starting to help airline companies. Public Relations Airline companies need to follow the two-way symmetric model of Public Relations. The airlines must maintain long-term relationships to keep its customers returning for more flights (Chen and Culbertson). While it needs to continue to have communication with its customers, it also needs to use a little persuasion to get customers on the flights. Without the customers the airlines have nothing. The airlines need to keep communication going with loyal customers and persuade new customers to get on its flights. Data According to the Bureau of Transportation Statistics (BTS) in August 2001 the number of departures for American Airlines was up to 63,752, but in September 2001 that number dropped to 43,548. In August 2001 Delta was up to 77,272 flights, but in September 2001 it dropped to 59,308 flights. Both of these major airlines suffered drastically in September 2001 which correlates directly with 9-11. American Airlines suffered a 31.7 percent loss while Delta suffered a 23.2 percent loss.
Schuetz 3 Customers are also worried that their flights arrive and depart on time. According to the BTS the number of flight delays decreased in September 2004 from August 2004. The arrival rate of on-time flights was up to 83.9 percent in September which was up from the 78.3 percent in August. This was still behind September 2003 which had an on-time arrival rate of 85.6 percent. The percentage of weather delays in September was down from August s 3.64 percent of weather delays at 2.91 percent. The percent of delays relating to problems within the companies control was only at 3.71 percent as opposed to 5.18 percent in August. Flight cancellations in September was a major problem with 3.1 percent of the flights cancelled which was high compared to August when only 1.6 percent of flights were cancelled. Delta was the number two airline with the lowest on-time arrival rate with only 77 percent. The flight statistics were good in September, but this changed in October. The overall arrival rate of on-time flights was down to 81 percent. The percentage of weather delays was up to 4.47 percent, but this should be expected as the weather starts to change to the extreme at this time of year. Company related delays were also up to 4.51 percent. Flight cancellations decreased extremely in October to only 1.1 percent of the flights being delayed whereas in September this was up to 3.1 percent. American Eagle Airlines which is part of the American Airlines had one the lowest on-time arrival rates at 78.2 percent of its flights arriving late. It also had one of the highest rates of cancelled flights at 2.6 percent of its flights being cancelled.
Schuetz 4 EXTREME WEATHER DELAY 0.84% NATIONAL AVIATION SYSTEM DELAY 7.09% SECURITY DELAY 0.05% LATE ARRIVING AIRCRAFT DELAY 5.26% AIR CARRIER DELAY 4.51% DIVERTED 0.14% CANCELLED 1.10% ONTIME 81.00% The figure above shows the percent of all delays for October 2004. Source: http://www.bts.gov Number of Operations % of Total Operations Delayed Minutes Percent of delayed minutes On Time 494,137 81.00% N/A N/A Air Carrier Delay 27,532 4.51% 1,308,635 27.36% Weather Delay 5,146 0.84% 319,073 6.67% National Aviation System Delay 43,257 7.09% 1,545,249 32.30% Security Delay 321 0.05% 11,628 0.24% Aircraft Arriving Late 32,084 5.26% 1,599,119 33.43% Cancelled 6,695 1.10% N/A N/A Diverted 864 0.14% N/A N/A Total Operations 610,037 100.00% 4,783,704 100.00% This figure shows the arrival performance for American Airlines for October 2004. Source: http://www.bts.gov
Schuetz 5 Number of Operations % of Total Operations Delayed Minutes % of Total Delayed Minutes On Time 494,137 81.00% N/A N/A Air Carrier Delay 27,532 4.51% 1,308,635 27.36% Weather Delay 5,146 0.84% 319,073 6.67% National Aviation System Delay 43,257 7.09% 1,545,249 32.30% Security Delay 321 0.05% 11,628 0.24% Aircraft Arriving Late 32,084 5.26% 1,599,119 33.43% Cancelled 6,695 1.10% N/A N/A Diverted 864 0.14% N/A N/A Total Operations 610,037 100.00% 4,783,704 100.00% This figure shows the arrival performance for Delta Airlines for October 2004. Source: http://www.bts.gov According to Delta Airlines its air traffic was up 9.7 percent from November 2003. Delta also reported that it completed its schedule at a 99.2 percent completion rate for November 2004. The company had 9,205,873 passengers in the month of November which was an increase from November 2003. RPMs (000): 2004 2003 Change Domestic 6,923,024 6,323,687 9.5% Delta Mainline 5,983,371 5,500,289 8.8% ASA 421,928 338,809 24.5% Comair 517,725 484,589 6.8% International 1,877,498 1,699,470 10.5% Latin America 389,674 345,987 12.6% Delta Mainline 374,845 333,561 12.4% ASA 10,227 8,205 24.6% Comair 4,602 4,221 9.0% Atlantic 1,398,788 1,276,613 9.6% Pacific 89,036 76,870 15.8% Total System 8,800,522 8,023,157 9.7% The figure above shows the November traffic in 2003 and 2004 and the percent of change. Source: http://www.delta.com
Schuetz 6 Airline customers are also worried about things such as their baggage being handled properly and not getting bumped off their flights. According to the BTS in September 2004 airlines had a higher rate of mishandled baggage at 3.81 reports per 1,000 customers which was down from August s rate of 4.81 reports per 1,000 customers. In September the airlines also had a bumping rate of 0.62 per 10,000 customers for the quarter which was down from the.70 bumping rate in the third quarter of 2003. In September the airlines received 592 complaints. In January through September the airlines had received 5,558 complaints. The airlines received 31 complaints that related to passengers with disabilities. In November the airlines received a much higher rate of mishandled baggage compared to September at 4.02 reports per 1,000 customers. The airlines received 480 complaints from customers which were down from September. They also had 39 disability-related complaints in November which was also up from September. The airlines did not report any bumping rates for the month of November. With many major airlines suffering these days the most important things is for them to keep loyal customers and gain new ones. One way to do this is to cater to the customers with a customer relations program. Delta Airlines has a customer commitment. It has 12 main points in its customer commitment. Its commitment applies only to domestic travel. Customer Relations Plans The first point is that the company will offer the lowest published fare to its customers. This includes the fact that the telephone representatives will offer money-saving discounts if the customer has a flexible schedule. It also includes that the reservation recording will alert customers of lower fares on delta.com. With the rates for flying going up it is good that Delta is
Schuetz 7 willing to offer its customers discounts and alert them of lower rates. The second point is that it will give the customer time to compare fares. It will hold the reservation until midnight of the next day without payment for the customer to check around on prices from other airlines and if the customer does end up booking with Delta he/she will receive the price that was already quoted. This 24-hour holding period was adopted by the Air Transport Association (ATA) for its members. The third point is that it will give its customers a refund within seven days for credit card purchases and within 20 days for purchases by cash or check. The refund process is made easier by having three ways to get your refund. You can contact any Delta ticketing location or your travel agent, by calling the reservations and sales department, or you can apply for a refund online. The fourth point is that the company will contact you if your flight has been overbooked. The company will also provide the customer with lodging accommodations if the customer is bumped and can t be put on another flight during the same travel day. It will also offer you Delta Dollars if you voluntarily give up your seat on an overbooked flight. The fifth point is that it will provide the customer with information about policies that will affect your travel. This includes frequent flyer details, aircraft aspects such as seat size, and flight numbers. The company will inform you of this information at the time of the reservation. The sixth point is that the company will make sure its partners offer comparable policies. The policies would be those regarding aircraft aspects (seat size). It would compare the policies of other ATA members. The seventh point is that the company will provide the customer with information about policies regarding disabled passengers, unsupervised minors, and passengers with special needs.
Schuetz 8 The company also offers wheelchairs to get to and from gates, as well as vision, hearing, mobility equipment, and boarding assistance. The company also has a full time disability manager. The eighth point is that the company will offer information regarding delayed or cancelled flights in a timely manner. The company will inform passengers through the gate representatives and flight crews. Passengers can also call the toll free number to receive the information. As with over booked flights it will provide the passenger with lodging accommodations if this is necessary. The ninth point is that the airline will provide the passenger with information regarding delays after the aircraft has landed. Customers will be allowed to use cellular phones and move freely around the cabin, and also provided with important needs such as food, water, heat, air conditioning, and restrooms in such a predicament. The tenth point is that the company will find and return misplaced baggage within 24 hours. The company has technology that assists in finding lost luggage. The passengers will be notified by phone when their luggage is found and customer services will continue to reach owners of unclaimed luggage. The eleventh point is that the company supported a proposal to the United States Department of Transportation to increase the amount of liability limitation on passenger luggage to 2,800 dollars.the twelfth and final point is that the company will respond to written complaints within 30 days which is faster than the 60 day standard set by the ATA. It has four ways for customers to voice their complaints. Customers can call them in, mail in the postage paid comment card in Sky Magazine, mail in a written complaint, or e-mail the complaint.
Schuetz 9 As one can see this customer commitment plan is quite long and extensive. With a plan like this it shows that Delta Airlines cares about its customers and it wants them to be happy. Along with this commitment plan the airline company has improved its airliners. You will now see pictures of the new and improved Boeing 777. It s hard to tell by the photos but the seats and lavatory are actually bigger providing the passenger with more room to feel more comfortable. This is a picture of a Delta Airliner. This is a picture of the new and improved front cabin of a Delta Airliner This is a picture of a seat in the main cabin of the new airliner. This is a picture of a new lavatory in the new airliner. Another thing Delta Airlines has done according to the company website is added extra flights on larger aircrafts to add more seats to Super Bowl XXXIX. The airline will add seats to its flights for its loyal customer and hopefully some new customers who happen to be the biggest
Schuetz 10 NFL fans to get to the game of a lifetime. The airline will add 47 flights between February 3 rd and the 8 th, 2005. The added flights will be from LaGuardia and John F. Kennedy International Airport in New York and Atlanta. It will also run its usual flights to Jacksonville, Fla. from Cincinnati and Chicago. The company said that depending on which two teams are competing in the Super Bowl it may add more flights from those cities. American Airlines customer service plan includes lowest fare availability, delays, cancellations, and diversion events, baggage delivery and liability, guaranteed fares, ticket refunds, accommodation of customers with special needs, essential customer needs during delays, overbooked flights, its frequent flyer program, service with partners, and handling of customer issues. The company promises the passenger the lowest available fare and if that fare is not given the company will issue the passenger a refund of the difference. The passenger will receive information in a timely manner regarding any delays or cancellations of their flight. The company states that it will try its best to return the lost luggage to the owners within 24 hours. As with Delta, American Airlines will reimburse passengers for up to 2,800 dollars for lost luggage, and it will give you until midnight of the next day to book your flight to give you time to check fares with other companies. The company will refund your tickets within seven days for tickets purchased with a credit card or cash. The company will issue a refund within 20 days for tickets purchased with a check. The company has an extensive policy regarding flying minors. The policy discusses the minor s age and what the regulations are regarding their flight. When booking the flight the agent will ask for parent or guardian s telephone numbers. It states that it will provide
Schuetz 11 passengers with disabilities with professional service, such as pre reserved seats, assistive devices, boarding assistance, and oxygen subject to availability. It will also provide the passengers on a delayed flight with the essential needs such as water, food, restroom facilities, and emergency medical assistance. When an overbooked flight occurs the gate agents will first ask for volunteers to wait for the next flight, but if people are forced to wait they will receive compensation. The company will respond to customer complaints with 60 days which is 30 days longer than Delta. Conclusion With the airline industry coming back from a major obstacle such 9-11 it is important to keep the customers happy, and that is exactly what their consumer relation programs are for. Not only must the companies be aware of customer complaints about baggage and fares they must also be aware of important things such as delays, cancellations, and over bookings all of which keep passengers from getting to the big news story, the next concert or film taping, to get together with friends or family, or for the family vacation. The statistics show that the airlines are departing and arriving on time for the most part, so the companies just need to keep that up to bounce back from 9-11.
Bibliography Chen, Ni and Culbertson, Hugh M. Communitarianism: a foundation for communication ymmetry. Public Relations Quarterly 42 (1997): 36-42. Customer Service Plan. n.pag. On-line. Internet. 3 Dec. 2004. Available WWW: http://www.aa.com/ Delta Adding Extra Flights for Super Bowl in Jacksonville, Fla. n.pag. On-line. Internet. 3 Dec. 2004. Available WWW: http://news.delta.com/ articledisplay.cfm?article_id9517 Delta Air Lines Reports November Traffic. n.pag. On-line. Internet. 3. Dec. 2004. Available WWW: http://news.delta.com/article_display.cfm?article_is=9522 Delta Customer Commitment. n.pag. On-line. Internet. 3 Dec. 2004. Available WWW: http://www.delta.com /care/service_plan/index.jsp Flight Delays Increase In October 2004. n.pag. On-line. Internet. 3 Dec. 2004. Available WWW: http:// www.bts.gov/press_releases/2004/dot206_04/html/dot 206_04.html Flight Delays in September Decrease from previous month. n.pag. On-line. Internet. 3 Dec. 2004. Available WWW: http://www.bts.gov/ press_ releases/2004/dot201_04 /html/ dot201_04.html