You are the CEO of _____ Airlines.
 

What would you do to improve the airline for the frequent traveler?

For a very long time, I have seen many posts on many threads discussing complaints and suggestions - many quite creative - concerning various aspects of how airlines are operated, including management of the airline's frequent flyer program. I figured this would be a great place to consolidate those ideas into one area. Given the extraordinary fluid dynamics that are fueling the sweeping changes throughout the travel industry, I am interested in what you would do to improve your respective favorite airline, as well as create what you think would be your ideal frequent flyer program. I would especially love to hear what unofficial airline representatives would do if they were promoted to CEO tomorrow.

I am a member of the AA, CO, DL and US frequent flyer programs. I used to be a member of UA, AW, TW, Midwest Express, Eastern and PanAm.

Here is your chance! You own the airline. What would you do?

[This message has been edited by Canarsie (edited 12-17-2002).]

Are you writing a magazine/newspaper story?

I'm reminded of a P.J. O'Rourke article in which he was discussing the War on Drugs with an inner-city doctor.

"What would you do if you were given the Drug Czar job?" I asked. "I mean, besides not take it?"

That pretty much sums up my answer to your question.

Mook

What would I do to improve things for frequent flyers?

When the business is losing money, it's difficult to spend more. Motivating employees to be friendly and productive is extremely difficult.

There is a trend to make the ff program as bad as the others and to charge as many weird fees as the others.

Not to be entirely negative, how about
1. small mileage bonuses or extra upgrade coupons for those who are elite for multiple years in a row.
2. bonus miles (as few as 50) for not checking in luggage. Even the non-frequent flyer may want those miles and cut the amount of work the luggage handlers have to do.

I would get someone like Joe Brancatelli on board and hand the job over to him.

Great - lets let a true nut case run the airlines - Oh, I guess that term is relative when talking about airlines, but he really does take the cake!

No, I am simply a small business owner and a fellow veteran frequent flyer like everyone else here who does not like the drastic changes airlines are making towards us, their best customers.

The reason I started this is for some serious debate about what the ideal frequent flyer airline program would be. We could then take those ideas and apply them using real-world economics. I could not keep quiet any longer about the radical changes being made, so I felt that if the best of us could generate some innovative ideas and suggestions here together that provide for a win-win scenario for both the airlines and us frequent flyers, the airlines might actually listen. These ideas could also include improving other areas of the airlines' business that would assist in preserving or even improving our beloved frequent flyer programs.

One idea: If I were CEO, I would have a contest for all elite members to submit suggestions on how to improve profitability, and/or possibly how to improve the frequent flyer program. I would get my best customers involved, and just for participating, everyone would be rewarded with a nominal amount of miles. Big prize winners might win a year at a certain elite level, or unlimited first-class upgrades.

Speaking of unlimited first-class upgrades, I feel all elite levels should have unlimited first-class upgrades, with priority for the highest levels, of course. This concept seemed to work as I struggled my way up to the top of the elite ranks at CO. When I was at the lowest level, I had good chances of getting upgraded. I got upgraded almost all the time at the highest level.

Those are just two ideas of many that I have. Please keep in mind that any ideas I come up are merely ideas for others to improve.

I don't care how far out those ideas are. I learned that the best ideas are the ones where one comes up with the ultimate unrestricted fantastic idea, then backs up to become more realistic with the idea.

If we can have an area primarily for constructive suggestions and ideas instead of complaints, and we stick together as a large group, maybe the airlines will take us more seriously than their marketing departments.

Lets see,
Id create a seperate Elite lounge at major airports to encourage flying. Premium tags on all elite baggage when checked. Offer discounts on airline booze to elites. Thats really all I can think of.
DC-10's Forever

I think there should be a separate forum for this sort of discussion. Maybe even a rotisserie league. Then the rest of us can focus on buying tickets and being passengers.

Mook, I like your profile. It's spunky.

Ok, this is only half joking.

Abolish the frequent flyer program and instead concentrate on providing the best possible product/service for your target market. Loyalty will come automatically if your product is significantly better than the competition.

As B Watson pointed out in a recent thread this model seems to work for brands like Four Seasons, Ritz-Carlton, etc.

Things I would do as CEO:

1. Listen to my employees.
2. Take care of my employees.
3. Listen to my customers.
4. Take care of my customers.
5. Simplify the process to make flying fun again and reduce costs.
6. Become personally involved.
7. Lead by example.

The job of management is to get work done by others. As Yogi Berra said, great managers are made by great players.

As CEO, I would spend some time at the airports, talking to employees and customers. I would find out their concerns and work to address them.

I would set up quality and communication "circles" where employees would be able to discuss company issues and propose solutions.

I would also set up consumer panels where, in particular, frequent flyers would be able to make suggestions and provide input. Further, I would institute a mediation and arbitration process where aggrieved consumers could seek a fair resolution of disputes. Much of this would be at the front line level where employees and supervisors would be empowered to resolve minor disputes much more than they are now. (While some customers are very unreasonable and/or unrealistic, most just want to be made whole. After Delta damaged a bag of mine and gave me a gazillion bogus reasons why they would not take care of it, I took it to a shoe repair shop where it cost me all of $1 to fix. It probably cost Delta more to argue!) It's a lot cheaper to take care of problems at the front line.

I would simplify the fare structure. It makes no sense to have fares on the books that make no logical sense. Most people just want to get where they want to be safely, on time and with reasonable comfort. I would shy away from loss leader fares and instead put in place a system where fares are inexpensive but not ridiculously so. A full plane of people paying $225 or so makes more sense that a schizophrenic fare system.

If there are upgrades, I would seek to make them available first to the best customers as a reward for their loyalty. I would, however, reserve a seat or two on each flight for a "mystery" upgrade similar to what many sports teams use.

I would encourage employees to, within reason, have fun on the job, bearing in mind the safety, efficiency AND hospitality are our primary goals.

I would destroy most of the form letters the so-called customer relations people use and instead have them respond with "real people" language. It's prefectly okay to say "we screwed up" instead of making excuses or engaging in double speak.

I would also fly my own airline and let people know when I am on board and who I am. Most of the time I would be in the cheap seats but occasionally not because I would want to hear what the platinum level folks think, too.

The biggest thing I would do, though, is throw out what isn't working about the present model and then ask my employees and customers what kind of model would work and then try to build it.

let me run them all. I'll talk sooooo much that the feds will simply bow down, give up, and just give me all the money I want to boast up the fledging carriers that be and I'll fly us all for free anywhere we all want to go!

Ha ha ha
(I can, you see, bust on myself)

Seriously though, maybe the CEOs need to be someone with a personality and who knows how to enjoy the flying experience like so many FT-ers and FFF-ers say they do.

:MM

Here are some plusses and minuses to chew on, with absolutely no statistics or business model to back me up:

1. Increase seat pitch and air circulation.

2. Eliminate FC domestically in favor of roomier economy seats.

3. Calculate multi-leg itineraries as point-to-point, eliminating the motivation to "pad" itineraries to amass miles or segments.

4. Refuse to sell three-leg itineraries until all two-leg itineraries are nearly sold out. This prevents mileage and segment padding.

5. $5 for special meals, but free movie headsets. I hate airline movies, and I hate sticking airline headsets into my ears.

6. Calculate elite levels based on actual miles flown (subject to the above-mentioned limitations) with a premium for top-tier fares.

7. Priority luggage handling and boarding for elite members.

8. Miles expire two years after last activity.

9. Free booze coupons for elite levels only. Hey, the stuff dehydrates ya like a prune.

10. Platinum members get 100% mileage bonus; Gold gets 50%; silver gets 25%.

11. FF award seats non-changeable and non-refundable, unless a 50% mileage premium is paid (waived for elite levels). Reduced mileage requirements to Europe off-season.

12. Upgrade policy: Automatic for PM in advance; 72 hours for Gold; reduced mileage for silver on day of travel. K or better fare except on day of travel, then fill 'em up with standbys. No paper upgrade coupons.

13. In fact, no paper coupons of any kind.

14. Priority waitlisting for elites.

15. Intriguing idea: Mileage charge for FF tix would be PER LEG, so that multi-leg itineraries would cost more than the same destinations flown directly.

Those are afew ideas off the top of my head, without any deep thinking...

[This message has been edited by Skylink USA (edited 12-16-2002).]

I smell a Delta employee. My humble apologies if your not, but this sound just like a Newbie Exec fresh out of an MBA program that the Company shelled out top dinero (No Robert)for and your objective is to "think outside the box" or "break the paradigm".

That being said, 1.) replace the fare structure with an understandable model, 2.) treat the customer like YOU would want to be treated, 3.) respect your employee's, 4.)reward your stockholders and do it in that order.

Again, my apologies if all you say is true but the professionalism of your writing, limited number of posts, hidden e-mail account all triggered the paranoia in me, no it didn't...

G

Simple, if I were the CEO:

Fire all the current managers, and hire Southwest's managers to run the airline.

I accept your apologies, Gandalf - in fact, I am rather flattered that you think my writing is professional! Alas, I don't have an MBA either, and I have never used the word paradigm before - up until just now, I guess!

My apologies to you if I made you paranoid. That was unintentional. I am GM on DL and have been for years, and before that, Gold Elite on CO for years (when Gold was the highest level). DL's recently announced SkyMiles program changes triggered my finally deciding to start posting instead of just reading the posts all this time. I especially disagree with their harshly severe upgrade "enhancements" that they just announced.

I underestimated everyone here - I assumed that the whole purpose of the FlyerTalk forums was all about frequent flyer programs, but I like all your answers even better. Sounds like everybody thinks the whole airline business model should be changed, and I could not agree more.

My two cents: I don't drink alcoholic beverages and I like to spend as little time in an airport as possible, so airline clubs are virtually useless to me. I have a free (now expired) one-day CO President's Club pass I never even used!

The only things I like about domestic FC is the slightly extra seat room, the meal (or the few extra bags of pretzels), getting off the airplane first (does not apply on a DL 757 and sometimes DL 767 since they use the second door) and the upgraded headphones. Give me a good coach product and I would never need to upgrade. Unfortunately, I don't really have that choice, living in the Atlanta area and traveling all over the US.

I won't repeat what everyone else said here, as I agree with virtually everything else mentioned here.

Any other thoughts?

[This message has been edited by Canarsie (edited 12-17-2002).]

[This message has been edited by Canarsie (edited 12-17-2002).]

C'mon, pynchon ... you mean that there's not a discussion board out there in the ether with thousands of people imperiously stating that they could do your job better than you can? http://www.flyertalk.com/forum/biggrin.gif

Aw, shucks. I'm blushing. http://www.flyertalk.com/forum/smile.gif

Mook

1) Study every aspect of United Airlines' operation very carefully from top to bottom

2) Do the opposite

P.S. FEED YOUR PASSENGERS! Sticking people in a narrow space with bad airflow, engine noise, possible turbulence, and no food for six or more hours while starving them is INSANE.

'Course that's just my opinion. I could be wrong.

"Fools rush in . . . " All right, I'll bite.

1. Copy American's lead and offer more room throughout coach. [Maybe do a tie-in with breakfast cereal: "The airline sized for people who ate their Corn Flakes."]

2. Set a sensible floor price for almost all tickets, and stick to it except for things like Thanksgiving Day, Christmas Day, and inaugural service: don't fall victim to the "no marginal cost" siren. The floor for coast-to-coast round trips might be $400 or so. (The majors were willing to fly me cross-country for $190-$220 RT in 1980; $400's not unreasonable today.)

3. Set a sensible ceiling price, let's say $1500 for coast-to-coast round trips.

4. Simplify fares, then don't chase the price cutters; let the other fellow lose his shirt.

5. Don't chase market share at the expense of profits.

6. Make the first class cabins larger (never shorter than 4 rows) and price them at about 25% above full fare coach.



------------------
"Yes, but at least mine will be found in a first class seat." -- Peattie and Taylor

Further thought:

7. Encourage throw-away ticketing. Let the customer score a victory now and then. Maybe let the customer "throw away" the ticket at the first destination airport by bringing it to the counter and receiving an extra 500 miles or a small gift certificate -- the airline can now sell the return seat to someone else.

8. Give bonus status miles to full-fare travelers -- let them get to elite status first ahead of mileage runners on discount tickets. (I say this against my self-interest.)

9. Add fun to flying where possible. Make us smile and laugh! Print boarding passes on paper stock with travel photos, like sports teams that put players' pictures on ticket stubs. Encourage flight attendants to sing (have you flown with Julie, the singing flight attendant on Horizon, who makes the worst prop flight fun?).

10. Help your front line personnel sell the airline's services. How often have you heard that insipid announcement at the end of a flight: "We are now landing in Chicago, where local time is 5:45 p.m. Thank you for flying Apteryx Airlines today. We recognize that you have a choice of airlines, and we hope that when your plans call for travel in the future, you will consider Apteryx Airlines for your next trip. Please remain seated until the captain has turned off the seat belt sign . . . "

How about: "We will be landing at Chicago's O'Hare Airport in a few minutes, where local time is 5:45 p.m. The temperature is 45 degrees and Chicago has light rain. When you're ready for a warmer climate, try Apteryx Airlines' service from Chicago to Miami, leaving twice daily during the winter months. . . "

Or: "Please be careful when you open the overhead bins to get your cabin baggage, as sometimes bags will shift in flight and move against the bin door. We want you to land with your bags, not under them."

I like most of Law Lord's ideas. (Heck, I remember when flying was more fun!)

Except--what the Hell is a "mileage runner" on a cheap ticket?

I realize that there is a schizophrenic fare structure on most airlines, especially most unprofitable ones, but I think it is equally ridiculous for anyone to spend more than they absolutely have to for a ticket.

Does anyone know how much it actually costs the airlines to fly a commercial jet to/from New York/Los Angeles (fuel, fees, salaries, etc.)? I've never seen it broken down into an actual (estimated) dollar amount. Seems like any CEO would have to know that amount, know how much to charge for each seat to surpass that amount, and stick to it, regardless of who can afford it. If it costs $600 per person, it seems the airlines charge Guy A $150 and try to stick Guy B with a $1050 ticket to make up for it. True, you get more Guy A's but do you ever get enough Guy B's to make up for the loss?

Good question. In addition, ShortyDog, I am also curious as to roughly how much it costs an airline to operate a frequent flyer program and how much the benefits (platinum status, for example) cost.

Just copy Alaska Airlines.

If I were CEO, I would strive to improve customer service throughout my company. I would seek to identify my brightest, friendliest, and most efficient customer-facing employees and listen to them: how would they improve processes? I'm talking about everything from airport check-in to boarding to telephone service to frequent-flyer program administration. I would try and create a culture where people were rewarded for taking care of the customer in the most efficient manner possible.

Current, airlines already spend a lot of money on their top-tier. There probably isn't much change needed there. But take the mid-tier for example: I'm both PremEx and Platinum. When I call UA, I have to wait on hold - almost every time. When I call AA, I rarely have to wait on hold at all. At the airport, AA has always taken time to rebook me in the most efficient manner possible (even if it's on another airline) when my flight has been canceled. UA has (twice) sent me to the Avis counter and told me to drive. In this example, it is obvious that AA has chosen to invest more in me as a 50,000-mile customer than UA has. Therefore, I continue to give business to AA, whereas I will let my UA status dwindle away to nothing.

If I were a CEO, I would make the mid-tier and low-tier travelers feel rewarded customer-service-wise, not just with bonus miles. These people are most likely to someday become the high-margin ExPlat type traveler in the future. As for everyone else (nonstatus), I would at least try and make their experience tolerable with simplified processes and competent staff. Eliminating ALL hold times and check-in lines might be too costly, but if I can make my lines/holds less than my competitor, then I will win a greater share of those travelers who might someday start flying more.

How about if the CEO were to make it easier just to FLY!

When you book someone else a ticket, you need to show the airline that same credit card. This may have some security reference to it, but it is also extremely inconvenient for all involved. I have run into several instances where it down right stinks!

I think there needs to be a complete overhaul in the system for how to purchase tickets and what the exact industry std. fees or policies are going to be--all over. When it comes to miles fees, change fees, this fee and that fee, it makes it hard to figure out due to changes on an almost daily basis. When it comes to the use of credit cards, it is very bad. Even if you are giving someone a miles award ticket, it is hard to get it right...

My story is avail for those who wish to email me, but basically, I think it is impossible to buy a ticket for someone else without problems popping up down the road. No matter how much you think you have covered, something will go wrong. My latest experience was when UAL desk agent failed to mark something in her system, we later found out, and now we have to do an entire process all over again because, "it's just our policy... sorry sir!"

Also, there are no city desks for the majors in Boston that I know of. This is true for a lot of places.

The airlines should also have city desks in major cities again! All of ours got closed after Sept 11...

We are headed out for the holidays as of Thurs, Dec 19 and I hope the flights go well. I used to be worried about problems with the plane or even just the food or movie. Now it’s all the administration crap that goes along with just getting on board! And I thought I was pretty good at keeping up with their stupid rules. AHHAGHA!

Man, I sure do miss the CTO's!! I know the airlines pretty much all determined that they did not add to the bottom line, but they were wonderful when I was traveling regularly on business. I always found the agents at AA's CTO's to be the most courteous, professional people one could ask for. Unfortunately, it appears that CTO's are a relic of the past in most places.

I'd stop adding those revenue generating fees for services that have always been free,
like standbuy and excess weight charges over 50 lbs. It's alienating those keeping you in business. IMO, dropping the changes before they are even begun only makes it worse because it forces the airlines to admit they used poor judgement.

All the fees and add-ons in recent times have certainly scared away tons of business and leisure travelers. It is no wonder that the majors continue to lose money. Our expectations continue to be compromised each time we fly one of them. So we hate it more and more.

And the majors still blame Sept 11 for all of this? It is strange to see that they are making travel worse themselves and it is wearing on us, the very passengers who pay them. Then they go file chapter 11. It's no wonder: A cycle indeed...

I might go with Southwest.

1. Focus on domestic and transborder service

2. One-class service, minimum 19" seat width and 34" pitch, power in odd-numbered rows. No food, but beverage/snack service.

3. All tickets one-way, 1-year credit on flights that you call to cancel at least one hour in advance. Maximum of 2 segments per ticket unless in an O-D market where no single connections exist.

4. Four fare classes
- Full coach (Y), miles count as double-status points
- 0-day-advance nonrefundable (H)
- 10-day-advance nonrefundable (Q, standard award class)
- Sale fares

5. Standby requires upcharge to H unless elite. Exit rows available for elites only in advance of airport.

6. Elite qualification is either on miles, segments, or mileage award (!)

6. Lower tier elite
- 50% mileage bonus
- Free standby
- Exit rows available 24 hours in advance
- Awards book in B
- 2 free drinks per flight
- Set of 12 $10 airport food vouchers, non-transferable, 1 stamped for each month, good at any airport restaurant/fast food place

7. Top tier elite
- 100% mileage bonus
- Exit rows available at booking
- Double miles (nonstatus) if they "oversell" the empty middle seat next to you
- Awards book in Y
- Awards include 2nd night free on any rate at a Cat 1-3 or 3rd night free on any rate for Cat 4+ from Hilton/Marriott/Starwood
- Without upgrades... NRSA-style passes good for 6 months, excluding Fri/Sun flights
--- 2 of each set of 4 are transferable
--- First 4 issued at qualifying
--- 4 more every $5000 or 35k miles after qualifying
--- Priority is after regular NRSAs

[This message has been edited by ElmhurstNick (edited 12-17-2002).]

A search on these boards (try the Delta archives, in particular, where B747-373B tends to hang out) will likely turn up more information on CASM and flight operating costs than you ever wanted to know. Failing that, you might want to hop on over to airliners.net or some such site.

I do know that it is standard practice for the airlines to lose money on their median passenger. That is, the fare paid by the passenger who has paid more than half the other people on the plane and less than the other half will usually be less than the cost to fly him.

This is because, until recently, airlines could always count on a couple of walk-up or like fares (the profit on one such fare can erase the cumulative losses of 20 other pax). It isn't working any more, of course, but -- shhh.... -- nobody told the airlines. http://www.flyertalk.com/forum/smile.gif

Mook

For those who wonder why I even brought up this topic, it is because I am stunned by many of the decisions management at the airlines are making when they really need to attract more business and compete better against the lower-fare airlines. I figured a thread consolidated with insightful ideas by some of the airline industry's best customers (with few or no complaints to dilute this thread) would be easier to digest for someone who works at one of the airlines and reads these posts.

Why doesn't anyone at the airlines just ask us what we think needs to be improved? My observation of posts, both here and at other threads, indicates to me that most of us, while we are interested in making flying as palatable for us as possible, still takes into consideration the needs of the airlines to make a profit. I see very few "selfish" frequent flyers at these forums.

Any chance airline representatives will look at the intelligent thought made all of us, grab the attention of upper management and perhaps take positive action for all parties, or is that just hopeless wishful thinking?

Please keep the ideas coming! Someone is bound to listen - I hope!

[This message has been edited by Canarsie (edited 12-17-2002).]

What ever happened to "Hooter's Airlines?"

Easy! The FAA did not approve of them shaking their tails!

Sorry. Just winging it. Could not resist.

[This message has been edited by Canarsie (edited 12-18-2002).]

Stop sounding like such a boob, would ya? http://www.flyertalk.com/forum/biggrin.gif

Canarsie--

This is by FAR a too-intelligent question to be asking when you are dealing with most airlines!

Good on you for asking it, though.

Sorry, Mook. Just trying to keep abreast of the deplorable airline situation.

[This message has been edited by Canarsie (edited 12-20-2002).]

[This message has been edited by Canarsie (edited 12-20-2002).]

Thank you, hnechets. Frankly, if I were CEO of an airline, that would be the first thing I would do.

Coincidentally, at my hotel this morning in Dallas, I read an interesting article in The Dallas Morning News entitled Frequent fliers frequently peeved . It can be found on-line at http://www.dallasnews.com/dmn/news/s...al.558d4.html.


[This message has been edited by Canarsie (edited 12-20-2002).]

1) Rigid price stucturing: Figure out what the gross cost of a seat is on each flight and charge about that amount for a 30-day advance ticket, 20% profit for a 14 day ticket, 50% profit for a walk-up ticket and 100% profit for a first class ticket. No upgrades (as first class seats would actually be affordable).

2) Then force under threat of death that all employees treat every single customer as if he or she were their boss. Empower employees to grant waivers and favors galore.

3) Sit back and watch the money pile up.