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Feb2420 Comments
Over the weekend, US Airways said it would stop charging for soda, water, coffee, and tea on March 1. You’ve probably read about this elsewhere by now, but it’s interesting to think about why they’re finally relenting on something that they held out on for months. It appears that this is a big shift in the US Airways strategy. The airline is now admitting that perception is important, and it is taking some seemingly small but actually big steps to fix their image problem.
In a world where airlines gladly charge for anything they can, US Airways surprisingly went it alone on this drink charge. No other major airline followed the lead to charge for soda and water. The airline resisted changing back despite all the criticism . . . until now. In the words of CEO Doug Parker:
We know customers don’t buy an airline ticket based on whether or not they will get a free soda onboard, but with US Airways being the only large network carrier to charge for drinks, we are at a disadvantage. More importantly, this difference in our service has become a focal point that detracts from all of the outstanding improvements in on-time performance and baggage handling that all of us have worked so hard to achieve over the past year.
This really is a big change, despite what they’re saying. It was just last September that the airline explained how happy it was with the change. President Scott Kirby went so far as to say that the flight attendants would “riot” if they went back to the old way. Talk about a change of direction, huh?
It appears that the airlines reputation and high level of consumer complaints have caused the about-face. US Airways has made excellent strides with its on-time performance lately, and overall reliability has been quite good, yet the airline still ranks toward the bottom of the list when it comes to complaints. In December, for example, US Airways had the second best on-time performance behind perennial leader Hawaiian Airlines. The airline canceled only 2.1% of flights in the very difficult month (poor weather) and reported fewer mishandled bags than the industry average. But when it comes to complaints, the airline finished next to last, just ahead of cellar-dweller United. So what’s going on?
At last year’s media day, the management claimed that they needed to focus on reliability, appearance, and convenience. Apparently, management has now realized that it’s not enough. They actually need to do more than that to keep people happy. They must have been receiving a fair number of complaints about charging for water and soda, so they relented. They’ll lose some money on this, but people will be happier. And that has now strangely become important to them. What a pleasant surprise.
They are also looking to address other sore spots. Instead of just being happy with a strong on time performance, they’ve actually decided they need to tell people about it. This is an airline that has really avoided brand advertising for years. But now they are actually finding some value in it, and they’re promoting their on time performance in several different types of media.
It’s a very interesting move for an airline that had been moving to a true a la carte model and had not put stock in brand advertising for many years. Personally, I would have thought that simply not charging for water would have been plenty. As long as people can get something to drink, they’ll be fine. But US Airways has decided to remove the charges from soda, coffee, and tea as well in order to boost the airline’s image. It will be interesting to see if the consumer complaint number starts to drop after this move.
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Sep27
This Week on BNET (Sep 22 - 26)
Filed under: American, BNET, British Airways, Fares, Meals, Southwest, Technology, US Airways, United;6 CommentsAmerican Airlines’ In-flight Internet Raises Porn Questions
Now that American has started to test in-flight internet, some are getting angry that the airline isn’t restricting which websites people can see.
US Airways is Happy That Nobody is Buying Drinks
It hasn’t been very long since US Airways started charging for drinks, but the airline is already crowing about the benefits they’ve seen so far.
United Gets Smart By Allowing Economy Plus Upgrades Anytime
United is making it easier for anyone to upgrade to Economy Plus at any time before they fly. It’s a smart move that’s good for everyone involved.
Southwest’s Stance on Fees Could be Problematic
Southwest has been very clear that they will not charge fees. Are they backing themselves into a corner with this aggressive marketing?
Financial Crisis Likely to Contribute to Premium Cabin Weakness
Massive bank failures will hurt many areas of the economy and the airlines are not exempt. There will be fewer premium travelers flying the skies. -
Sep325 Comments
The rumors starting creeping out over the weekend, but the news officially broke yesterday. United has decided not to begin charging for meals in coach on transatlantic flights from Washington as previously announced. Of course, the question now is . . . why? United wants you to think it was all in the name of customer feedback, but after speaking with Lufthansa, I tend to think that it was partner pressure.
Officially, United is saying that it was in response to customer demands. An employee communication put it this way:After hearing from many of our customers and flight attendants that our corporate and elite customers value our hot meal service in United Economy on trans-Atlantic flights, we have decided not to move forward with the test we announced last month of offering customers Buy on Board meal options for those flights.
And to its customers, United’s Graham Atkinson is sending a letter with more of the same. See Upgrade:Travel Better for the full text of that one.
But did this really all come as a result of the customer feedback received over the last couple of weeks? That would be very customer-focused and completely surprising. Did they actually see a change in booking patterns so strong that they backed away? That would surprise me as well. So what else could have happened?
I sent a note over to Martin Riecken, spokesperson for Lufthansa asking if they had any comment. Here is his response:As you probably know, Lufthansa has a clear commitment to a high level of service in all classes. Complimentary meals and a full array of free drinks in all classes is a main pillar of our service concept. That said, of course we have remained in constant dialogue with United on important decisions like this which would also affect Lufthansa codeshare passengers.
Of course, he didn’t say they had anything to do with this reversal, but he did say that they are in constant contact about issues like these. Remember, Lufthansa and United have a revenue sharing agreement that makes them very tight partners on North Atlantic flying. Anything United does has the distinct possibility of significantly impacting Lufthansa’s revenue. Something tells me that charging for meals crossed the line here.
Is it really possible that United didn’t bother to discuss this with Lufthansa beforehand? If so, I’d think some heads might roll over this. They’re trying to spin this change in a positive light, but it really points to a management team that pulled the trigger on something major before properly vetting it. (No McCain/Palin jokes please.)
Don’t get me wrong, I’m glad they’ve reversed course. I just wish they hadn’t gotten themselves into this mess in the first place. -
Aug30
This Week on BNET (August 25 - 29)
Filed under: Allegiant, American, Inflight Entertainment, Meals, Mergers/Finance, Schedule Changes, Southwest, Technology, US Airways, United;1 CommentUnited Slow to Address Public Concern Over Paid Meals on International Flights
United made waves by announcing charges for meals on some international flights last week. Unfortunately, their PR efforts weren’t up to the task.
American Offers Wi-fi as a Differentiator
Last week, American enabled wireless internet access on its 767-200s. United better take note or they stand to lose significant share.
Allegiant’s Unique Reverse Enplanement Costs
In an interesting twist, Allegiant is loaning money to Phoenix-Mesa Gateway airport for expansion purposes. This is a very smart move.
Labor Day Means Fall Flight Cuts are Coming
With Labor Day approaching, that means fall schedules go into effect. This year the cuts are very deep, and airlines need to pay close attention.
US Airways’ Scott Kirby Joins the Board of LodgeNet
US Airways President Scott Kirby is now on the LodgeNet board of directors. Could this mean a new inflight entertainment system is in the works? -
Aug2050 Comments
United really is a sad, confused airline, isn’t it? For an airline that just two days ago stated that it had put together several “initiatives . . . to improve the guest experience,” yesterday’s announcement seems completely out of place.
But knowing United’s history of schizophrenia, I suppose this shouldn’t surprise us at all. This airline is a mess, and this latest move is certainly worthy of a Cranky Jackass award.
So what did they do? Well remember that post I wrote about United surveying people about their willingness to pay for meals internationally? It’s coming to fruition. But that’s just the tip of the iceberg. Instead of explaining it all here, I’ll just quote an internal memo with the cringe-worthy title of “Catering Changes Provide Value and Options.” Ugh.Effective Sept. 2
North America United Economy® (UE) -All Markets- Expanding a la carte snacks for purchase to flights between 760 -1149 miles (approximately 2-3 hours in duration) as a result of successful testing in select markets. Along with the expansion, we’re removing complimentary biscoff and pretzels as data from those tests confirmed that the a
la carte offering appeals to our customers and they are willing to pay for snacks of higher value. - Continuing test of a fresh Buy on Board offering along with the current snack box on flights between 1440 - 2099 miles (approximately 3.5 - 5 hours in duration). Testing limited to ORD-LAX-ORD and DEN-IAD-DEN.
That’s right. No more snacks onboard medium-range flights. But believe me, this is nothing compared the rest of the things here. In fact, this one didn’t even make me blink.
Effective Oct. 1
Increasing Buy on Board Prices- Shelf-stable items increase from $5 to $6.
- Fresh items increase from $7 to $9.
That’s one way to raise cash. Just raise your prices. These aren’t exactly competitive (Delta will still give you a turkey sandwich for $7), but nobody is going to compare meal prices when they choose their airline. They really are trying to ease us into the worst stuff, aren’t they? Let’s move on.
Offering Two-Class Service on North America Three-Class Airplanes
- United First® service remains the same.
- A combined BOB service will be offered in United Business® (UB) and United Economy® (UE).
- Customers in UB will receive complimentary beverages and BOB offering.
- Staffing will be adjusted to FAA minimums.
Ok, this is insane. On some flights between hubs, United offers service on its internationally-configured aircraft. That means that instead of the usual mediocre domestic first class seat, you get a nice international product in first and business. Now, they’re giving up on business class on those aircraft by making the seat the only differentiator between coach and business. Oh and you’ll get the food and drink for free in business, but it’s the same stuff you can buy in the back of the bus. Staffing will be reduced to FAA minimums meaning that you’ll have about the same level of service as you get in coach (down 1 or 2 flight attendants on each flight).
I understand that this will save the airline a minuscule $2 million a year. That is a drop in the bucket in terms of the bottom line, but it’ll certainly anger people who end up in that “premium” cabin on domestic flights. If they really wanted to simplify things, they should sell the business seats as coach and upgrade their best fliers. It could be sort of an Economy Plus Plus. At least then they’d be underpromising and overdelivering, but no. They’re being greedy here and it’s going to backfire.Buy on Board Offered Out of IAD to Europe (except KWI)
- Replacing complimentary meals in UE with BOB fresh and snack box offerings.
Had I seen this one from US Airways, I wouldn’t have even blinked. It’s consistent with what they’re trying to be. I know that United sent out surveys asking about people’s thoughts on this, but I guarantee you that they’ve tossed out the undoubtedly negative results of that survey and decided to go with this anyway. It’s just incredible to me. And yes, I’ve confirmed with United spokesperson Robin Urbanski that elites are not exempt. They will have to buy meals just like everyone else if they’re in coach.
Eliminate Second Service in p.s. Market
- Removing the pre-arrival snack service and replacing with a beverage service in response to flight attendant and customer feedback.
Now when you fly p.s. between LA or San Francisco and New York/JFK in business and first, you’ll get your first meal but you won’t get a second service. (Meals in the small Economy Plus section were eliminated awhile ago.) I’d like to see the customer feedback that says that people don’t want a snack; they’d rather just have a beverage. Please. Don’t try and hide behind that one as your rationale.
So there you have it. The death by a thousand cuts strategy continues. Like I said, if I saw this from US Airways, I wouldn’t blink. (They’ll probably match.) But this is United. This is the airline that just released those ridiculous animated commercials that tried to set the mood for a premium, luxurious experience when you fly. That is NOT the airline that is actually being presented to the flying public. This is an airline that appears to have early stage dementia and can’t quite remember what it’s supposed to be doing half the time. Somewhere an Indian is crying. (He’ll probably tell you through his thick Indian accent that his name is Bob Smith and he works in a United reservations center, but that’s not important right now.)
If you want to make it clear to United that you want a better, more consistent experience that actually lives up to (or, *gasp* exceeds) your expectations, you need to switch your spending and actually fly on an airline (like the soon-to-be Star Alliance member Continental) that can deliver. So far, United has proven that it can’t do it, over and over again. Just remember, words won’t change a thing here. Shifting your business elsewhere will. - Expanding a la carte snacks for purchase to flights between 760 -1149 miles (approximately 2-3 hours in duration) as a result of successful testing in select markets. Along with the expansion, we’re removing complimentary biscoff and pretzels as data from those tests confirmed that the a


