Saturday, June 14, 2008

Stress on Airline Industry

Dissatisfaction with American airlines is starting to increase. The flying experience is degrading. Fuel increases are creating difficulties for several airlines and they are responding by cutting crews, snacks, flights and charging more fees. While fare increases, which the general public will understand, cutting in other areas and additional fees are creating rumblings.

Two months ago a few airlines started charging $25 for a checked second bag. Others soon followed suit. Now a few airlines have announced that they are charging for all checked luggage. This week’s trip I saw more people carrying their luggage onto the plane. On the return flight out of Minneapolis yesterday afternoon, all be bins were full and nearly a dozen cases had be to go as plane checked items. I noticed seven people with items that were larger than what were normally allowed. If you are in the last group to load, chances putting your luggage in the overhead compartment are becoming slim.

One airline has flouted the idea of charging an extra fee based upon the weight of the passage. If implemented, that will create a furor.

Airlines are likely to find ways to maximize crew schedules by keeping their time between flights tight, a pattern first established by a deep discount airline that folded two years ago. On this trip I noticed more crews walking off one plane and going directly to another that was scheduled to depart shortly. The pilots come from one plane and the flight crews from another. If one plane is late in arriving, the chances that it will impact more than one other flight has increased. In Minneapolis a flight beside the gate as ours was late departing as they waited for a crew. Both our connection flight out of Atlanta and the flight to Orlando out of the gate besides ours left 20 and 45 minutes late due to crews arriving late.

The number of people flying is starting to decrease, a trend that is bound to continue as fares increase. As airline schedule fewer flights and cancel routes, and as some airlines close/merge, flights will remain full even though traffic will decrease. Businesses will look at ways to decrease the number of trips. Pleasure trips are likely to decrease too. Airlines with fewer fees will attract a greater portion of travelers. Those who charge fees will have more vacant seats as they push the vacation traveler to other airlines who are customer focused and avoid charging fees.

The airline industry is undergoing stresses that will change the industry. One or two of the legacy airlines may disappear in the process. Only time will tell.

4 comments:

Christian said...

There is going to be a flood or air travel refugees to my favorite airline...Southwest Airlines.

Southwest has no fees for any checked bags and still offer complimentary snacks and is still operating in a healthy financial manner.

They are a well run airline. Something that the legacy airlines of United, American, US Airways cannot brag at this point!

Jenn said...

i think with gas prices the way they are, people are going to start staying home for vacations...it's just a matter of time before the airline tickets jump a ton because of the gas prices

Barbara said...

I hated flying before ... I guess I won't be finding any love for it in the near future.

I think I'll keep doing driving vacations.

Dave said...

Evie and I do not want to travel too far this year, but we have little choice with having to go the Indiana to get Josh and then take him to LSU. Gas alone could run us $1,800 in the RV. We have looked at other options, but hotels and a trailer rental would cost us more.