Wednesday, July 4, 2007
Friday, April 20, 2007
Congress eyes standards for airline service
The Atlanta Journal-Constitution
Published on: 04/20/07
Washington — Airlines have not kept their promises to protect passengers from travel horrors, so Congress may need to set federal standards for customer service, the top Transportation Department investigator told a House subcommittee Friday.
During the first two months of 2007, nearly one-third of commercial flights were delayed, canceled or diverted, testified Calvin Scovel, the department's inspector general.
Some flights leave late so often that just advertising their departure time may "constitute a deceptive business practice," Scovel told the aviation subcommittee of the House Committee on Transportation and Infrastructure.
In February, for instance, US Airways Flight 154 from Philadelphia to San Francisco was late 100 percent of the time, and JetBlue Airways Flight 76 from West Palm Beach, Fla. to New York's John F. Kennedy Airport was late 96 percent of the time.
Even after well-publicized delays that leave passengers stuck on a runway for hours, some airlines have not defined what constitutes an "extended period of time" for meeting the needs of onboard customers, Scovel said. Others have set limits ranging from one to five hours, he said.
"We think it is unlikely that a passenger's definition of an extended period of time will vary depending upon which airline they are flying," Scovel said.
After an earlier outcry from passengers stuck for hours on a snowbound jetliner in Chicago, airlines said legislation was not needed and they would solve the problems themselves, he noted.
"Given the problems that customers continue to face with airline customer service, Congress may want to consider making (consumer customer service standards) mandatory for all airlines," Scovel said.
Airline industry officials told the panel that legislation is not needed. Most of the problems are caused by weather, they said, and federal mandates would create more problems than they solves.
"I don't think Congress can legislate good weather or the best way to respond to bad weather," said James May, president of the Air Transport Association of America, the main trade group.
Even though JetBlue has adopted a voluntary "customer bill of rights," the airline's chief executive officer testified against the government imposing such standards. "The best intentions can have bad consequences," said David Neeleman, cautioning that what works for one airline or at one airport might not work at others.
But several committee members said their patience was exhausted in waiting for voluntary measures to work.
"Unless the industry addresses this and addresses it now, there is going to be legislative action," warned Rep. Jerry Costello, D-Ill., the subcommittee chairman.
Rep. Peter DeFazio, D-Ore., predicted Congress will "set a floor for customer protection" that would mandate at least a minimum standard of treatment for airline passengers.
Scovel, who has been leading an investigation of airline treatment of customers, criticized the Transportation Department as well as the carriers. While the federal agency has made progress in enforcing civil rights violations by the airlines, he said, "it needs to improve its oversight of consumer protection laws."
The economics of the industry has contributed to customer complaints, he said. To cut costs and fill seats, the industry reduced its scheduled flight capacity from 8.1 million seats in 2000 to 7.6 million in 2006, he said. Meanwhile, more people were flying.
"Reduced capacity and increased demand led to fuller flights," he said, which was good for airline economics, but not necessarily for customer satisfaction.
"Reduced capacity and higher load factors can result in increased passenger inconvenience and dissatisfaction with customer service," he testified. "With more seats filled, air carriers have fewer options to accommodate passengers from cancelled flights."
For example, when unexpected storms led to many flights being canceled over the Saint Patrick's Day weekend, May said, it had a "cascading effect." Passengers on canceled flights couldn't get seats on subsequent flights that were already booked solid.
Source : http://www.ajc.com/business/content/business/delta/stories/2007/04/20/0420bizairlines.html
Airline Passenger Revenue Up in March
U.S. airlines took in more revenue in March than they did a year earlier for every mile they flew domestic passengers, a trade group said Friday
The industry's domestic yield, or price passengers paid to fly one mile, excluding taxes and fees, averaged 13.1 cents in March, compared with 12.93 cents in March 2006, according to the Air Transport Association.
So far this year, industrywide domestic yield has averaged 12.7 cents. Last year's average of 12.8 cents was up by 9 percent from 2005 levels, as carriers reduced the number of available seats and tried to offset higher fuel costs.
The trade group's statistics are based on data from Alaska Air Group Inc. (nyse: ALK - news - people )'s Alaska Airlines, AMR Corp. (nyse: AMR - news - people )'s American Airlines, Continental Airlines Inc. (nyse: CAL - news - people ), Delta Air Lines (other-otc: DALRQ.PK - news - people ) Inc., Northwest Airlines (other-otc: NWACQ.PK - news - people ) Corp., UAL Corp. (nasdaq: UAUA - news - people )'s United Airlines and US Airways Group Inc.
Source : http://www.forbes.com/feeds/ap/2007/04/20/ap3636862.html
