What happened to basic business practice in the airlines?

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mcflyer

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Some airlines like Tiger in Australia have beggared belief that they run as a service business. After a load of complaints earlier this year they at least announced they would attempt to improve. I would like to think that the stink I created when I encountered their non-existent internet front counter contributed towards a reappraisal of simply awful business practice for which "low cost" constitutes a lame excuse. I will never have the chance to find out first hand whether there are real improvements because I will never fly with them again. Good one, Tiger!

The Tiger experience was not of an organisation under stress, but an organisation that deliberatively chose a cattle truck strategy to manage customers. But, in the hurly burly of airline competition, what used to be expected on long-haul flights can no longer be taken for granted. Poor staff morale is obvious in understaffed aircraft cabins. And front-line morale is a litmus test for how well managers in the airline are performing. The miracle is that most flight attendant crews are as cheerful and attentive as they are for at least part of the flight.

As a former business school academic I observe what goes on in businesses I deal with, especially when things don't go as well as they ought to do. The reflections here are from a specific single case, flying Iberia from JFK New York to Madrid and on to Amsterdam. The recent storms in North America and Europe have really been a full blown test of airline, airport and baggage handler management practices and service strategies. And the businesses I encountered over the snowy weekend of 20-21 December 2009 failed the implicit principles of organisational management and customer relations dismally.

Delays and cancellations can be expected given the severe weather conditions experienced on two continents in the northern hemisphere over the weekend. But, an airline would also be expected to have contingency plans for assisting their passengers when there would be nothing else but high customer demand for assistance from the airline. It has happened before and it will happen again, so airlines will have in place a strategy to make things as smooth as possible for customers, wouldn't they? Apparently not.

Most passengers deal with the delays that result from natural phenomena quite phlegmatically and often with remarkably good humour. But, if you have to wait for hours in a 100 metre long queue which is being served by three people, something tells you that senior management in the airline are not doing what they are being paid for: to run an efficient service organisation.

When information is withheld from passengers at JFK and they are told in the afternoon there will be no delays to a flight when snow is closing airports in Europe, they have a right to feel miffed when the plane is pushed back two hours after the due departure, ninety minutes of which they have been sitting in an aircraft whose engines had not even been started. Passengers can accept that their plane has to be re-routed when snow is falling on Madrid airport and they have missed their connection [which had been cancelled anyway, but noone will tell you that].

The lack of information about closed airports for people en route and anxious about re-booking a connection is completely unacceptable. What is likewise completely unacceptable is the failure to inform passengers heading for Madrid from New York and sitting on the tarmac in Malaga several hundred kilometres to the south that they would be lucky to get out of Madrid that day at all and the airport was full of people not only waiting for flights that day but also passengers whose flights had been cancelled the evening before.

A further aspect of this management failure to have in place systems that would keep passengers informed is the failure to advise where transitting passengers could go to make arrangements: indeed, there was no transit desk at the airport. If there was, there was no-one to tell you and no such information was given onboard to the unsuspecting passengers. The pilot spoke at length about the weather conditions in Spanish and English, but did not enlighten the passengers on what they were about to experience. There were no Iberia staff to meet the plane and to advise and assist passengers on the general situation and what they needed to do.

This failure of service by the company was exacerbated by the organisation of the modern, architecturally pleasing but poorly fitted out Madrid airport - an issue of style at the expense of utility [for example, general departure notices were at least 50 metres apart, did not face the pedestrian traffic but were 180 degrees to the traffic flow, were in small characters and were at eye level, so when crowds gathered at each of the sparse boards, you had to jostle to see the announcement regarding your flight. This is just one aspect of Madrid Airport, which is a design disgrace. All of the signage is confusing from the moment you enter from your flight.

So, passengers unfamiliar with Iberia and the Madrid airport had to discover for themselves where to go for information, only to find the enormous queues leading to under-staffed information booths. Eventually, I worked out the only way to deal with the chaos was to get into an Iberia check-in line with my original internet booking documents in hand as well as my boarding pass issued at JFK for my Amsterdam sector. There I was dealt with cheerfully by a Ms Fernandez, who waitlisted me on the next Amsterdam flight, which I eventually boarded.

At the boarding gate which changed three times - the final time while people were being directed from one end of the terminal to the other, at least 300-400 metres - another example of an airline, which failed to have in place basic procedures. First of all, given that it was clear that there were quite a number of standby passengers, you would think that the company would have had more than two people to handle boarding of passengers with boarding passes and the clamour of passengers seeking to get on the flight. One would have thought too that there would be a priority line for passengers who had been held over from the previous evening and had been at the airport all day [the plane eventually left at 7 pm]. There appeared to have been prior seat allocations for some passengers and I think that is how I got on board, but what resulted was pushing and shoving as passengers thrust forward their passports and standby passes. Chaos created by a failure of management to have contingencies to manage the gates in extreme weather conditions. The young man handling this mess should get a company award for the poise he demonstrated in dealing with the resulting mob. The responsible managers should be sacked.

Further delays in take-off and arrival at Schipol Amsterdam occurred that were weather related. But after my bag failed to appear on the carousel, I joined the growing queue outside AviaPartner, the baggage handling company. I counted the number in the queue and there were over a hundred people. They were being assisted... by two employees. Given the weather conditions, one would have thought an alert management would have had more employees on standby to deal with any demand of this sort. This was happening after 11pm. I was fairly grouchy by this time - it had been twenty-four hours since my trip had begun - and queue jumpers were getting on everyone's nerves. There was neither at Madrid Airport or at AviaPartners any queue ticket system to ensure that people doing the right thing were being protected. This is not advanced technology but it is used commonly in a number of businesses and government agencies in Australia [and who says government bodies don't know how to handle business!].

Now, my luggage tag has a company issued barcode. That would suggest to me that the baggage is scanned. It would also suggest to me that the woman taking my details could tell me whether my bag was still at Madrid, Dakar or on its way to Buenos Aires. Nothing of the sort. Twenty-four hours later [I am seriously jet-lagged] my online baggage tracing details still read, "No information available." That says it all.

I hope that the management at Iberia and other airlines and the management in other sectors of the industry reviews what has happened in their company and their industry because with climate change we are going to have more of these extreme weather events. The industry is old enough to have learned these lessons. What I observed while in Iberia's hands and their baggage handling company was a failure of customer support strategy, which is the prime concern of management to put in place systems to deal with not only the known but the unexpected. Or, what I was seeing was a hubristic lack of concern for passengers' interests, which are also the airline's interest, because each airline relies on returning customers and growing its clientele at the check-in counter.

The passengers were also poorly served by the airport infrastructure. Clear signage, with clear messages are the ABC of movement around airports. Boards that are too small with the wrong orientation, too far apart and at the wrong height to be seen in peak periods by large numbers of passengers are useless. In the very long terminal there were no moving walkways, but the ceiling was nice. The body responsible for the airport should either resign and/or get in place someone to fix the mess in the otherwise impressive building.
 
The Tiger experience was not of an organisation under stress, but an organisation that deliberatively chose a cattle truck strategy to manage customers.

This topic has been debated extensively on AFF. I think you just summed up their business model in one sentence there. I will never voluntarily choose to fly Tiger due to the cited reason. However I believe that airlines like Tiger are doing something right, both in stimulating competition in the sector (I think what we currently have is better than the days of the QF/AN duopoly), and providing a cost effective means of travel for people who'd otherwise drive or jump on trains or buses. I think so long as one adjusts their expectations accordingly when utilising Tiger, one shouldn't be surprised or underwhelmed by the "cattle truck" style of service. You don't waltz into Maccas expecting Michelin-starred cuisine or service - similarly, don't expect Qantas or even Virgin Blue levels of service when you've paid peanuts for a Tiger Airways fare.

As for the other scenarios you described, I think it's unfair to suggest that the entire industry doesn't care about customer service when the examples you're using (extreme weather conditions) are anomalies rather than the norm. I don't think anyone could've anticipated the extreme snowstorms that have just recently occurred in Europe. The level of coordination required between the airlines, airport authorities, governments etc to manage situations like these is enormous, and so I don't think I'd expect anyone in that situation to magically come up with a solution immediately when so much is beyond the control of the operators involved - and it is not just the air transportation sector that's affected in this instance, think Eurostar, ferries, closed roads in multiple countries across Europe etc.
 
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Some airlines like Tiger in Australia have beggared belief that they run as a service business.

I disagree, and will say that any airline is running a transport type business. They are in the business of moving a person from A to B, anything above this such as the service, the type of food, the lounges, seat types etc is an additional secondary benefit.

It is much easier (and more marketable) for an airline to promote the service, the food, the lounge, the seats rather than it's actual on time performance for getting you from A to B (which is what I believe is the primary business of an airline is).

This is where the problem lies, because of this marketing, it is hard to manage people's expectations, and some passengers will develop unrealistic expectations on what an airline should or should not do.

It is often seen in the case of the LCC's models that when a problem arises, the airlines - legally and justifiably - can hide behind the thin veil of their Terms and Conditions that each and every passenger agreed to at the time of booking. But a passenger with those unrealistic expectation or even a higher level of expectation, may think that if something is not perfect or when something does go wrong (even if its out of the airlines control) then the airline should be totally responsible for it and must solve that problem - when again there is no obligation for them to do so.

Some airlines are better than others in assisting / dealing with issues but then again, I form the view that if it is not part of the Terms and Conditions, which one agrees to, at the time of booking ... then there is no legal obligation for them to do so (unless there is some common law or statutory obligation).
 
I'm not sure how this snow storm compares to similar events that have happened previously (worse or better), but in general airlines are not very well equipped to deal with such situations with finesse.

In saying that, though, where would you find the extra staff to deal with the mountain of concerned pax in an extreme event. You might try taking FAs off cancelled flights to help ground staff. I'm not sure if everyone is multi-trained to do any task, but even if that were possible I'm sure FAs need to be on standby themselves anyway just in case their flight actually does leave or not.

The other solution is to call off-duty employees to tell them to come to work to help in a situation like this. So you need someone (or at least a few people - goodness help where you can find them) to make a lot of phone calls for people that might not be prepared to come to work when it should be their day off (even if you were to offer them high penalty rates or more time off in lieu). Also, if it were a severe snow storm then it would be hard enough for employees not at work to get to work, and you'd probably want them there pronto to help with the huge crowds. You can see that this is not going to work, or work well.

Airlines are trying to cut back on the number of employees required to do particular jobs. An example of this is FAs doing gate agent jobs and self-sevice check-in. Management mostly work on a basis that adverse events do not happen often enough with enough repercussions that would warrant having extra staff in those positions.

I agree with you that communication in times of adversity is often very poor, but as QF009 mentioned this is due to the number of stakeholders (e.g. airports, etc.) that need information and confirmation of details. As much as people hate the lack of information, they also hate being perfunctorily told different bits of information every five minutes, especially when it starts to conflict with itself! (For example, will a plane leave or not? Oh wait a minute, the weather in AMS just cleared up! Oh no - damn! - just got bad again when we taxiied out.)

The standby issue at the gate could have been better handled and you would think the airline would have already assigned seats to fill the plane and informed the relevant pax to come forward. What you probably don't realise and this is beyond any airline's control is that as much as the successful standby pax have come forward, everyone else that might or know they have missed out will also come forward to ask what the hell is going on with them. You'd think pax would have enough sense to know that not every standby can make it on board - especially when there are about 200-400 of them jockeying for seats! - so if you've registered your place just sit down, shut up and wait to be called. No amount of begging, guilt tripping, bribery or threats is going to get you on a plane any faster.

The OP's long discussion is eye-opening albeit it puts a lot of (deserved) pressure on management which is mostly insensitive to the experiences and the pressures that actually affect the company's operations at the operational/ground level. In saying that, the OP's discussion is slightly ignorant of the fact that passengers in times of extreme stress (such as what we have now) are also liable (and much more than usual both due to the new era of flying and due to the extreme conditions) to be unreasonable, unruly and quickly irritable. People must appreciate that in times of extreme weather that things will go much, much slower and they cannot expect that they will be processed in a time equal to or even near that of when flying conditions are normal.

I'd like to hear more about the OP's view on other incidents, such as the recent "cut cable" that crippled DJ in MEL recently, or the AA fiasco about a passenger who was served a security letter after innocuously for a glass of orange juice.

I wonder if extreme weather (obviously not within the control of any human being) is not regarded as acceptable grounds for an airline to escape its compensation obligations under EU Regulation 261/2004.
 
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Unfortunatley I think the days of quality service are behind us, and that doesn't just apply to airlines but to all industries. Australia does seem to lead the western world when it comes to poor service.

I've lost track of the number of times I've experienced rude, disinterested and self-absorbed service staff everywhere from restraurants and bars to department stores to call centres. It seems that the new "Australian Way" is for service staff to put themselves above the customer, and any actual work they have to do is above and beyond the call of duty.

Australia of course isn't the only place where this seems to be the norm, service across America isn't much better.

This has intern pushed across into the airlines as well. Checkin staff in particular (ie: the lowest paid) as well as Flight Attendants have let standards slip dramatically across the board. While the low end airlines JQ/TT are the worst, one can't honestly say that QF crews these days offer an exceptional level of service. The reasons? Well simply because they can. The companies have made it clear that poor service will be tollerated (how many people have complained to QF and only ever received a "fob off"?) and while thats the case its not going to get any better/

Is it right? No of course not. Is it going to change? The better part of me hopes that if enough people vote with their feet it will, however when the competition is just as bad - what are we to do?
 
I think the core of my argument is that airline managers are failing to do their job. If it is, as Alanslegal put it, "any airline is running a transport type business", then they are failing to do their job: flying people from A to B safely, comfortably and expeditiously is the business. The aircraft is merely the mode of transportation. You'll note that I made no comment about the lack of entertainment choice and the minimal entertainment provided by Iberia for intercontinental passengers. The lack of frills was nowhere mentioned in my article. What I was focussing on was the failure of airline systems to deal with the certain eventuality of problems arising from the weekend's weather, and systems development, monitoring and improvement are what managers are supposed to do. And they do that best when they involve front-line staff in systems management [Management Strategy 101].

I don't underestimate in the least the complexity of the situation faced globally by the airlines in the face of the extreme conditions on the weekend. And I was not complaining about delays - I thought that was clear. What I was complaining about was the lack of adequate frameworks for helping the paying passengers through the crisis. And I will be bold enough to say that what I observed was corporate failure to look after the passengers. And in a word it was inefficiency writ large.

Anatol1 referred to staffing levels. One of the arguments that employers run for having large numbers of casuals and part-time employees is that the organisation thereby becomes more flexible. That might be true if there are proactive measures in place: planning for weather as extreme and widespread as that on the weekend. So, it still comes back to staffing systems and customer management systems and they are managers' responsibility. And where they don't have the interests of the passengers at the forefront of their business they are not going to bother with trying to ameliorate passengers' distress - meeting the customers' needs are at the core of Management 101. Not attending to passengers' needs is pretty foolish, because the returning customer is the lifeblood of the business. And you manage to alienate your employees as well and they, in turn, don't provide as good a front-line service as paying passengers expect and that's Employment Relations 101.

The trouble is, too many airline travellers take the attitude that if you buy a ticket on any airline other than the top few, you get what you pay for. The point is that you don't get what you pay for with too many airlines hiding poor service behind the no frills model. No transaction justifies poor management practice and air travellers need to become more vocal in defence of their quite reasonable expectations. The industry needs more considered analysis than the specific whinge.

An update on my own specific whinge is that I have just been notified my luggage is to be delivered tomorrow, Christmas eve....
 
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However I do not think Iberia is a good example of a business failing under pressure.They fail under normal conditions.So in my experience-Iberia have my vote of worst FA ever,worst J meal,total failure of communication and worst GA ever.
As I mentioned in a TR,IB cancelled a flight i was on on a DONE4 and rebooked us the next day-just didn't tell us or AA(ticketing agent).When we arrived at Barge*rse airport the GA just said you are on tomorrow's plane and walked away.A fellow pax,confirmed by another GA just said to go to the Barcelona shuttle and they would sort it out for us which they did.
 
Well said mcflyer. I think you have highlighted a few areas where the level of service delivered has been in decline for a number of years.
 
The ultimate insult: the baggage company returned the almost new, lightweight [but strong] suitcase with thew zipper ripped off and the lock missing. Says it all, really. It will be interesting to see what they do with my demand - yes, demand - for a new bag.

Merry xmas everyone....
 
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