DEL.ICIO.USChanges not causing drop-off in customers, though
The Atlanta Journal-Constitution
Published on: 07/23/08
It seems counter-intuitive.
Just as consumers are tightening spending on optional expenses like travel, airlines like Delta and AirTran are adding fees and cutting flights, workers and free services that could woo fliers their way.
 Marcus Yam/myam@ajc.com | ||
| Delta customers wait in line for the ticket counter at Hartsfield-Jackson International Airport recently. | ||
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But the reality for airlines is that bad service won't necessarily lose many customers, especially in hubs like Atlanta, marketing and industry experts say. Fliers have gotten so used to it, that poor service is not much of a factor in whose ticket they buy.
"If you've flown in the last two years, you've gotten used to very bad service," said Tom Dougherty, chief executive of Greensboro, N.C.-branding firm Stealing Share.
"I think we'd prefer to have something better than that," he said. "The question is, 'Who offers it?' And the answer is, 'They're all bad.' "
In an airline industry reeling from high fuel costs, extra fees, delays, and flight and job cuts are commonplace.
When Atlanta-based Delta Air Lines in March announced plans to add a $25 fee for a second checked bag, Delta spokesman Kent Landers noted, "This is in line with general industry practices."
AirTran Airways, which is based in Orlando and has its hub in Atlanta, now charges $10 for a second checked bag for passengers who check in online. Travelers who wait until they get to the airport to check in and alert the airline about a second bag pay $20.
AirTran now charges passengers who buy discount or sale fares $6 for advance seat assignments in coach, and exit row coach seat reservations cost $20.
AirTran also has plans to cut 300 flight attendants and 180 pilots from its work force through voluntary exits and furloughs. It is cutting flight capacity by 5 percent beginning in September.
Delta, like its competitors, is cutting flights — leaving fewer options for travelers on many routes — and reducing its staff. The company plans to shed about 4,200 jobs through voluntary leaves by the end of the year.
The airline also added fees for customers using frequent flier miles and curbside check-in, as well as the second-bag charge, which took effect May 1.
Delta said customer reaction to how it implemented the additional bag fee was a major reason it received the highest rate of consumer complaints in May among all U.S. airlines, according to the U.S. Bureau of Transportation Statistics. The airline charged the fee to customers who bought tickets before Delta posted information on the fee on its Web site. After a barrage of complaints, Delta offered rebates to affected customers.
From January through May, Delta exceeded its competitors in another dismal statistic: More of its passengers were stuck on planes for four hours or longer awaiting take off than any other U.S. carrier, according to the Bureau of Transportation Statistics. Delta blamed many of the waits on backups at New York's John F. Kennedy International Airport.
Still, passengers continued to fly Delta, with the airline posting a 4.2 percent increase in passenger traffic in May, compared with a year earlier. Delta reported second-quarter operating revenue of $5.5 billion, up from $5 billion in the same period of 2007.
Travelers in a place dominated by one or two carriers don't have many options, said Dougherty, the branding firm executive.
"If you fly in Atlanta, you'd better have a preference for Delta," he said. "That's not brand preference, that's like being handcuffed to the geography."
Flier David Fletcher, who lives in Marietta and travels almost weekly, has noticed a customer service change at Delta.
"For sure, the service levels have gone down," he said. But Fletcher said he still mostly flies Delta.
"If you fly to Atlanta, most of the flights are Delta flights," he said. "On top of that, Delta's not the worst. Other airlines have other problems."
Minneapolis-based airline consultant Terry Trippler said frequent flier programs — not customer service — are the main reason people choose airlines.
Airlines want to provide good customer service, but at the same time they know they can lock customers in with their frequent flier programs, Trippler said.
Matt Gantt, who lives in Seneca, S.C., flies Delta regularly and said Delta treats him well. But he said better or worse customer service probably wouldn't affect his choice of carrier.
"Because Delta has a major hub, you don't have a lot of choices," Gantt said.
Kevin Healy, AirTran senior vice president of marketing and planning, said good customer service and operational reliability are linked.
"Running late is expensive," Healy said. "You want to run an efficient airline, which is good for customers, and in the end good for your bottom line."
Delta's executive vice president of operations, Steve Gorman, said despite its tightened finances the company has made investments to improve service in some areas, such as baggage handling.
"You prioritize the projects," Gorman said. "You try to spend the portion that gets you 80 percent of the benefits, for example, and then you cut those that were smart things to do and nice to have — but not if you're under a constrained-capital environment."
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