PPRuNe Forums - View Single Post - UAL on Deathwatch
View Single Post
Old 6th Mar 2003, 11:59
  #63 (permalink)  
ATPMBA
 
Join Date: Jun 2002
Location: Avon, CT, USA
Age: 68
Posts: 472
Likes: 0
Received 0 Likes on 0 Posts
Quotes from OldAge84:

In short, by gutting their inflight and airport service, as well as the frequent flyer plans, the airlines in general have beaten the customer loyalty out of the business traveler. I fly whatever is the quickest and easiest and least expensive and don't care anymore what color the plane is or if I get miles. This truly can't help the airlines bring up their revenues and margins.

I won't fly Northwest unless they are the last airline running, as the last reservations agent I dealt with was so rude to me it just about ruined my day.

On a recent roundtrip on Southwest, on both legs, one fairly crowded, the other fairly empty- the cabin crew couldn't have been nicer or more…
- - - - - -

I think OldAge84 and 411A have zeroed in on a major problem in the industry. The four P’s of marketing are product, place, price, promotion. Price is only one of the four “levers” a company can pull. It seems at this point customer service has slipped so much that price is the only lever left to pull. People generally do not buy only on price, if they did we all would be driving Yugo’s. It seems like airlines are a commodity, almost all are the same, all are un-differentiated, just like buying a gallon of gasoline. If airlines can boost their customer service and get rid of attitudes perhaps the travelers would be more inclined to fly or flock to the airline that offered better service (product).


Quote from Wino:

Southwest also didn't lay off or slash wages or benefits, so its easier to smile. (Infact they have just given out more raises even though they are likely to lose money this quarter)
- - - - - -

I could be wrong but it’s my understanding the pay scale at SW is well below other major airlines. A 20% pay hike from $100k is still well below $180k but that 20% still looks good. I once worked for an air taxi firm and we had a term for it, it was called “subsidizing the company”, so there is a tradeoff, take low wages and have a job or go for the gold and risk a furlough. I also heard that pilots have been called in to move baggage, I don’t now if this is SOP or just part of Herb Kelleher’s corporate tales. SW is different from most airlines and that’s why they are successful, it’s called product differentiation.

I recommend that you get a copy of Herb’s book, “NUTS!”, as it contains lot of business wisdom and may serve as a guide for anyone thinking about improving their airline or selecting a model for a startup airline.
ATPMBA is offline