NC Airways: Passenger frustrations rise as American Airlines struggles

Sunday, August 25, 2019

Passenger frustrations rise as American Airlines struggles

Cancelled flights, wrecked vacations and leaky planes.

Are fixes coming?

American’s recent court success may help, but the company is still negotiating contracts with all three of its major labor groups, including pilots and flight attendants. It also should get its grounded Max jets back later this year, if Boeing’s timeline for fixes holds.

“I think it’s just a bigger problem than it ever has been in the past for American,” said Robert Mann, an aviation consultant with RW Mann & Co. in New York. “It’s more noticeable because American, as a Big 3 network carrier, has been able to rely on high fare corporate revenue.”

American benefited from size over its competitors when it merged with U.S. Airways in 2013, operating the largest network with 365 destinations, Mann said. But other airlines have aggressively grown routes and added flights between key markets, while American’s traffic growth has slowed.

“The only difference between American and Delta at this point is that Delta is far more reliable,” Mann said.

Rath, who came to American in 2015 from Delta, said the airline is making technology changes to help customers deal directly with delays and cancellations. Much of that is through American’s app to let customers deal with rebooking and compensation themselves. She said customers who prefer to use an app will help alleviate lines for those wanting face-to-face interaction.

In response to challenges with delays and cancellations, the airline has also started proactively bringing sandwich carts, food and beverages to passengers of delayed and canceled flights. But Rath said they can still do better to let customers know what’s happening.

“We have to get the customer taken care of before we get to the airport,” she said.

American has also put together teams to work on how to get planes in and out of airports faster, she said. And there are plans for improved crew scheduling systems, too.

Other major airlines, such as United, have shown the ability to improve reliability and win back customers. And American has major advantages if it can improve, said JPMorgan’s Baker.

Most passengers are going to pick airlines based on route and convenience, he said. American has the most destinations of any carrier. It also has credit card holders and frequent fliers who are reluctant to give up a preferred status that it took them years to achieve.

“I frequently hear from people that say they can’t stand a particular airline, but they stay with them for points, lounge access or other benefits,” Baker said. “The reality is that passenger memories are short and are easily overcome by price, network strength and loyalty perks.”

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