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Service quality and customer satisfaction in the airline industry
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Introduction Many US companies have closed operations following a dismal performance, which primarily stems out of unhappy customers. It therefore goes without saying that the success of any company or organization is deeply rooted in the happiness of consumers. Many America companies have come under sharp criticism for the wrong reasons. Some like Wells Fargo recently rubbed shoulder with clients following a damning revelation of employees creating phony accounts to meet sales quotas and in turn siphon money in the form of fees from unsuspecting clients. Spirit Airlines is no safer when it comes to America’s most hated companies. It is currently ranked the worst America Company with poor customer service, according to the American customer satisfaction index (ACS1, 2017). Problem Statement The poor employee-employer relationship at Spirit airline is making customers have longer waits at airports leading to low customer satisfaction. Low customer satisfaction not only shreds customer loyalty, but it is also leading to millions of losses in revenue as customers turn to competitor airlines. More about the Issue Spirit Airline has been in the public limelight for the wrong reasons. Many passenger flights have been delayed for over six hours …show more content…
Most of the time, passengers have to struggle to get clear directives from the airline whenever there is a delay or when a scheduled plane developed a mechanical problem. Flight passengers only learn about flight delays and unreported mechanical problems when a gate which they were to use is shut leaving them with no option other than to seek help from other open gates. A survey conducted by ACSI reports that a majority of customers who have once or twice been caught up in the airline mess swear not to use the carrier the next time (ACSI, 2017). Currently, the carrier has the worst customer satisfaction rating, something which might lead to a significant decline in
The objective of this research report is to provide a thorough analysis of Alaska Airlines. In order to do this we chose to compare a similar company against them. The company in comparison is Spirit Airlines. Both companies compete in the same type of business through airline transportation. Many of their services include; security, safety, transportation of passengers as well as luggage, ensuring vehicle safety while in transit, concierge services, providing entertainment aboard plane, checking weather conditions prior to flight, and much more. All of the data gathered for this report was obtained from the company’s 10-k filings with the SEC.
Superheroes and villains are not commonly associated with airlines, but in the article “A Tale of Two Airlines” by Christopher Elliot, it is put into a different perspective. The two airlines in question are Spirit and Southwest. Although both have some similarities, they both have considerably different views on how to treat customers. Southwest practices treating customers with respect, while fares may be a little higher. Spirit’s beliefs are to treat customers “like cargo” with lower fares. With their friendly attendants and better overall customer interaction, this appoints Southwest as the hero, making Spirit our villain. Elliot makes his point by exclaiming the “heroes” should be rewarded with a higher multitude of passengers and the “villains” should not be granted this satisfaction.
Since 1987, when the Department of Transportation began tracking Customer Satisfaction statistics, Southwest has consistently led the entire airline industry with the lowest ratio of complaints per passengers boarded. Many airlines have tried to copy Southwest’s business model, and the Culture of Southwest is admired and emulated by corporations and organizations in all walks of life. Always the innovator, Southwest pioneered Senior Fares, a same-day air freight delivery service, and Ticketless Travel. Southwest led the way with the first airline web page—southwest.com, DING, the first-ever direct link to Customer’s computer desktops that delivers live updates on the hottest deals, and the first airline corporate blog, Nuts About Southwest. Our Share the Spirit community programs make Southwest the hometown airline of every city we serve.
Along with the low stock index numbers of September 17th, the airline industry and travel stocks were also rocked. One of several airlines announcing layoffs, US Airways said that they would be terminating 11,000 jobs. These heavy losses were contributed to airlines “being grounded last week [week of September 11th], plus passengers have been apprehensive to fly, in the wake of the hijackings” (Stock Markets Reopen 1).
“A Tale of Two Airlines” by Christopher Elliott brings good versus evil to a whole new level. It depicts Southwest Airlines as a hero, who only cares about the well-being of its customers. On the other hand you have the “villain,” Spirit Airlines. Spirit attempts to deceive its customers by advertising the lowest possible price, however underneath that cover is hidden fees. The purpose of this essay is to analyze “A Tale of Two Airlines” to see if Elliott can pull passengers out of Spirit’s evil grasp and back into the trusty hands of Southwest Airlines.
hurt United. The point is, now we live in a world where YouTube videos can go viral, airlines need to think about how to improve customer service. Another example of an airline that has suffered from bad customer service practices during the digital age is American Airlines. There are so many dissatisfied American Airlines customers out there that they have created a couple of very active Facebook pages.
Airline and travel industry profitability has been strapped by a series of events starting with a recession in business travel after the dotcom bust, followed by 9/11, the SARS epidemic, the Iraq wars, rising aviation turbine fuel prices, and the challenge from low-cost carriers. (Narayan Pandit, 2005) The fallout from rising fuel prices has been so extreme that any efficiency gains that airlines attempted to make could not make up for structural problems where labor costs remained high and low cost competition had continued to drive down yields or average fares at leading hub airports. In the last decade, US airlines alone had a yearly average of net losses of $9.1 billion (Coombs, 2011).
The Last Flight of Hawker 818MV Incident Hawker Beechcraft Corporation 125-800A, N818MV, operated by East Coast Jets and designated as Flight 81, departed Atlantic City International Airport at 0713 central daylight time on 31 July 2008. Flight 81 was transporting employees of Revel Entertainment to Degner Regional Airport in Owatonna, Minnesota as part of a five-leg trip sequence. During the landing on runway 30, the captain initiated a go-around late in the landing roll, striking the localizer antenna of runway 30. The two pilots and six passengers were killed, and the airplane was destroyed upon impact with the ground (Accident Report, 2011, p. 1).
Caribbean Airlines is a young state-owned airlines company having its headquarters in in Iere House in Piarco. The airlines company was founded in 2006 and began flight operations on 2017, operating through the Caribbean, Central America, North America, and South America from its base at Piarco International Airport. The airlines company initiate a simple one-way fares that provided a flexible fare combination and extended stay options for the global passengers. The exclusive program also featured a permanent discount facility, no change fees for students, and senior citizen discounts.
Prior to 2008, it looked as Alaska Airlines might follow the path of other major airlines and file for bankruptcy. The numbers were dismal, at the lowest point only 60% of flights were on-time and seven per 1,000 customers’ bags were mishandled. The system was broken; there was a lack communication amongst the different roles and the goal of the company was to provide mediocre but “nice” service to customers. Major problems included delays mishandled baggage and long waits at carousel. These problems laid deep-seeded in the ideology of Alaska Airlines.
This was a sad day for everyone in both the immediate and extended “Delta family,” a day perhaps as sad in its own way as the death of Mr. Woolman almost 40 years before. The sadness mixes with fear by employees and retirees, their families, stockholders, customers, vendors, taxpayers, governments and all others among the tens of thousands impacted by the bankruptcy. Leadership decisions by Delta’s Board and CEO’s over a long period of years laid the foundation for Delta to be in a position where the factors would have a large enough impact to result in bankruptcy. By promoting Ron Allen to CEO, primarily because he had moved up the chairs in the company through Beeb’s efforts, the Board showed their lack of awareness of the need for a strategist to deal with the fundamental changes taking place in the airline industry. Then the Board brought in Leo Mullin and gave him free rein for 6 ½ years to turn a cash rich company into one in such poor shape financially that his successor had to turn to expensive sources of money to keep the company
Let your Dreams take the flight with Frontier Airlines. Call 1-888-301-5548 for more updates. About us: Frontier Airlines is an American ultra-low-cost carrier headquartered situated in Denver, Colorado. It is the 8th largest business airline in the US. Frontier operates flights to 70 destinations throughout the United States and five international goals.
Karp, G. (2013, December 27). Southwest airlines has a surprising problem: delays and the worst on-time rates in U.S. The Washington Post. Retrieved February 3, 2014, from http://www.washingtonpost.com/business/economy/southwest-airlines-has-a-surprising-problem-delays-and-the-worst-on-time-rates-in-us/2013/12/27/c5063230-6ea6-11e3-a523-fe73f0ff6b8d_story.html
Several large scale, interrelated conditions have affected the airline industry over the past several years in such a manner that every carrier has had to respond in order to remain viable and competitive.
1- Issues The main issue of this case is the lack of profits of the airline industry, an industry that should be more than profitable due to the large amount of customers, the necessity of using airlines’ services and the high prices charged by most of these airlines. What we are going to deal with is, why is this happening? And how is American airlines dealing with this problem?. To be able to discuss how American airlines wants to regain profitability, we must identify and analyse different issues such as, the company’s background, the airline industry as a whole, the demand for air travel, the marketing strategies, the distribution systems, pricing policies etc.