Is American Airlines the New G.M.?
As I watched Chrysler and General Motors slip into bankruptcy, my mind started to wander to the current state of the airline industry in the United States.
When I was growing up in the 1960s, the domestic airlines provided excellent service. The planes had bright interiors. First class meant really special service. Coach passengers were treated well and were offered a choice of good meals, free of charge. There was more leg room in coach.
Didn't the airlines have some of the best jingles in their radio and TV commercials? In other words, the commercial airlines were truly competing with each other to make their passengers feel special --pampered and respected.
Similarly, the '60s were the last glory years of the American car industry. By the 1970s car enthusiasts knew that true innovation in the industry was coming from Germany and Japan. It was the Hondas, Toyotas, Mercedes and BMWs that grabbed everyone's attention. Foreign cars were known for their better handling of the road and, in many cases, better gas mileage.
Increasingly, it was clear that the American car industry was mired in the past and out of touch with consumers. GM and Chrysler were making lousy products. How often did we hear GM promise that they were on the verge of making competitive vehicles, or worse, claim that the vehicles they were already producing were competitive?
Did management really believe their own hype? Had they lost enthusiasm for making great cars? Did they realize how bad the product had become, and how inefficiently the company was run?
Back to the airlines. A couple of weeks ago I had to fly from Boston to Los Angeles. For $99, on three days notice, I grabbed a ticket for my first flight on Virgin America. What an experience! I walked into a cabin that was drenched in lavender neon, with quiet but excellent techno music playing. The effect was a bright but relaxing atmosphere. I felt like I was in a quiet room of a club in Southbeach. The plane was equipped with wi-fi and in front of each seat was a computer that provided entertainment (satellite TV, movies, Ted Talks, videos), the ability to text passengers in other seats, and contained a menu of food and drinks that, when chosen, were brought to you by the steward. The bathrooms were clean and music was played in them throughout the flight.
While I was settling into my seat and taking in this fabulous atmosphere, my mind drifted to a phone call I'd had with American Airlines a week before. I had been called by the Platinum desk to inform me that I'd flown over two million miles on American.
I was now a Platinum member for life. She then said she'd noticed that I'd recently been flying the airline less frequently. She asked why.
Where to begin? I used the Nashville to LA flight as my example:
- The cabins were dark and cheerless.
- The bathrooms, including those in first class, all reeked by the middle of the flight.
- Even in first class you could no longer order a special meal if you had dietary health issues.
- I had been on planes that suffered too high a rate of mechanical issues.
- The flight attendants as well as employees behind the ticket counters are great people, but generally resentful of the way they are treated by management. In fact, I've yet to meet a flight attendant who believes their last contract was truly ratified, since no one seems to know any colleague that voted for it.
Let's face it. American Airlines -- along with Delta, US Air, United, Northwest, et al -- have browbeaten the customer into accepting a flying experience more comparable to a bus ride than an airplane. This past week, we were informed that the regional jets associated with Delta and Continental are often flown by pilots who have failed multiple piloting tests.
Here's another example of how the airlines are not paying attention. At the end of last week it was reported that Continental Airlines, which charges $75 extra per flight to ensure that that unaccompanied children arrive safely at their destination, had lost two children on two separate flights the previous weekend. Lost luggage is bad enough. Lost children?
Furthermore, a survey of 1600 fliers released by SeatGuru last week found that American, US Air and United have the worst food as well as ranking near the top for the rudest flight attendants. Singapore and British Airways (along with Southwest in one category) have the best.
Delta, US Air and United have already been through bankruptcy. They promised to run leaner, more consumer-friendly airlines. Passengers know they're not much different than before. Worse, as service continues to decline, the salaries of the CEOs somehow continue to bloat. Yet, outrageously, they demand that their workers take huge pay cuts.
Like the American auto industry, our airlines were the first and the best. They were models for airlines in other countries. But now it's other countries and the Richard Bransons of the world that are leading the way in delivering a great product.
As we flew over Detroit, I couldn't help but think it sounded all too familiar.
James Boyce: Virgin America: A Flight Review Written InFlight [Updated]
I fly Virgin Atlantic back and forth to London religiously. I can't stand British Airways, and I was looking forward to trying Virgin America.
Blake Fleetwood: 30 Airlines Will Fold Before Christmas
The larger players Lufthansa, British, and American have access to the credit markets (and government help) and are using this opportunity to gobble up weaker, struggling competitors.
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Trixner...what "enormous cost" for an airline ticket are you talking about? Didn't you read????...Ms. Roboff had a $99 "enormous cost" ticket for a coast to coast flight. I have been a flight attendant for AA for 23 years. In 1986 the cheapest fare between LAX and JFK was $600. (I can't even fill my car up three times for less than $100.)
American Airlines is the ONLY U.S. carrier that has never flied for bankruptcy. Drymartini is right...we continue to pay our bills while the others only had to pay a portion of their debt.
It is human nature to want to be treated with respect. I value our customers and treat them with the upmost respect. I, and others like me, realize that it is the customer that keeps me in a job. However, this industry does not turn out a cost based product. If it did, Ms. Roboff wouldn't have been able to purchase a $99 ticket.
As for my demand for an "exorbitant sum" of money for my job. We don't get cost of living adjustments. We "topped out" at 15 years at a whopping $35,000/yr. Then we took a pay cut on top of that fter 9/11. The only way to make more is to work overtime. I work double overtime every month.
I am not complaining...I am very grateful to have my job.
My daddy always taught me......you get what you pay for!!!!
I have to say that the greed I see most right now are the employees angrily demanding raises in the midst of the worst recession in 50 years. Some of the more militant groups are hellbent on it, no matter if it bankrupts their company.
How did we get here?
How about the bonuses the mgmnt/ceo continually take for themselves while taking from the employees?
Oh, I see, that is okay with you?
You have no idea what you are talking about.-malcontent.
We need to Nationalize all the major Airlines...!
why not refuse restructuring of an airline next time and let one or two liquidate. too much supply compared to demand !!
That's a part of it, safety is slipping maintenance is being done in third world countries..the quality of pilots slipping I had a friend on that flight headed to Albany Gerry Niewood...a great loss...a great great musician...
Redundant flights and waste of fuel...so many reasons, why should our airlines run at a lower standard than our air force the world's best...
Becasue they could then get out of their aircraft leasing deals with ILFC. ILFC's parent is AIG and, as everyone now knows, AIG is too big to fail.
No other industry would be able to get away with and survive providing such lousy and uncaring service like the airlines do
American is one of the worst. I have had more delays, cancellations, lost luggage, missed connections, bumps with them than any other.
I avoid them, and any others like United that hub in chicago like the plague
The airline industry really took the dump when they were deregulated, and started the ineeficient hub and spoke system. cripes you can't get a direct flight anywhere these days two and three plane changes arent at all unheard of. Most places I travel to anymore i can get there just as fast or even faster driving
High time we got some real competiton for the airlines - such as hi speed rail which also is less fuel intensive and more environmenatlly friendly
Regulation must return.
All the things you speak of are from managements instructions. Watch when a ceo/vp gets onboard, the First class is cleaned, fixed, everything works, all choices are available, and there are no mechanicals. Everything is picture perfect and the flight goes off without a hitch.
Now watch the same flights daily and you see filth, lavatories with stench or don't work at all, and everything is duct taped or deferred.
Don't blame the inflight crews, they are doing their damndest with continually shrinking paychecks, and further restrictions and more seats/sales added svc.
Problem is we are not seeing any liquidation of airlines, only restructurings. so a bankrupt airline reemerges and starts a price war with debt laden airlines and the cycle continues.
if a few airlines went bankrupt in this market, it would be great because most likely 1-2 of them wont be able to restructure.
Greed. America has no social conscience and greed is killing us. So, we are very quickly falling behind. We have a strong military (although, we don't even keep the rank and file properly cared for)---otherwise, we are way down the list and Americans are unmotivated to really even give a damn. They are brainwashed in worrying about "socialism" at all cost. That cost is very high!
You got it right. Good old-fashioned, red-blooded "American individualism", long cherished as equal to "democracy" as an American value, we now have discovered when left to "flourish" unregulated results in unencumbered greed. And Greed, My Fellow Americans, R Us!
you sure nailed that one.
We won't even care for our military, so why should you /we care if the working person inflight gets skrooed constantly.
Out of all the flights I have taken Virgin American was the only one who truly gave me an experience. Made me feel like a customer, and not a number. I've flown continental, southwest, numerous regional airlines, you name them... most are sub par, unclean, uncomfortable, and just outright poor experiences for which we pay an enormous cost. I completely agree that they are turning into the new car industry. The days are coming to an end where a corporation can continue to market an inferior product to the public and expect them to continue to purchase it amicably.
That discomfort/uncleanliness, and broken down aircraft are all because mgmnt/ boards of directors of all corps want the planes that way. WAKE UP> It isn't the pilots/inflight crews that want this that way. The veterans that I know want the airlines to return to when they were clean, not broken, and had great service to offer. VEterans of other carriers want to compete with Virgin air, but they can't change mgmnts and boards of directors ideas of what should be. The bottom line in Shareholders and Boards of directors and CEO/VP's mgmnt is that they squeeze out every single dime out of every single psgr. They dont' give a rats arse what happens to their employees or the psgrs/
Riddle me this: how is it that Virgin America and JetBlue pay their employees less in both wages and benefits, and yet have a better "soft product"? The (heavily unionized) employees at AA and other legacy airlines are bitter because they have seen their wages cut and are expected to perform more job functions. In that context their bitterness is somewhat understandable, but they demand to return to the days when they were paid exorbitant sums for the work performed. At the height of their pay cycle the big airlines didn't have the intense competition from discounters that exists today.
All that to say that the poor service you often get from legacy airline crews is a direct result of this marketplace adjustment in wages.
I bet you will be happy when wallmart starts flying.
I like to fly with Virgin. Nice. Singapore airline. Nice. Great experience on KLM. US airlines? Not so great, although it's "fun" to fly with Southwest... they always have a surprise for you... like one time when they couldn't find the key to the gangway and we were stuck on the plane for fifteen minutes. Neither is Lufthansa (it's not bad once you are in the air but the ground service stinks and they are very expensive).
I think what we're seeing is that American business CAN'T compete.
When the airlines were regulated, that is, someone told them how much to charge to get from a to b, they could follow instructions.
When GM/Ford/Chrysler were the only choices, of course people bought their priducts.
Problem is, their greed got the best of them.
Airlines wanted deregulation, made all kinds of promises, now look at them.
Same with Detroit. Once the Germans and Japanese started bringing their superior products over here, people snapped them up. They even started building them here, so it's not the labor that's the problem.
These guys in suits in the executive suites only know how to do one thing, give themselves more money.
AMen, when greed took hold and all there were no restrictions on safety/service, the airlines in the US ruined it all. All with the blessings of the Shareholders/Boards of directors and CEO/VPs mgmnt
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