Discussion:
Discuss a 4 Issue Investigation.Poor Passenger Service of American Airlines
1.Mistrust of Labor with Management (David)
- Mgmt Retention Bonuses
- "Secret" supplemental executive retirement plan
2.Wage Concessions from employees (Rahul)
3.Poor Passenger Service (Nutchanart) For me
4.Ongoing Employee Misery (Ronak)
The American airline is a giant airline operator in the American aviation industry. For such a long time it has operated in the North America, Canada, Europe and South America. Despite the good reputation on customer service the airline appears to be flying low latitude. Even the entire aviation industry seems to be ranking low in the American customer satisfaction index. In 2014 it ranked position 69 behind other industries such as internet. The issues leading to poor ranking were uncomfortable sitting and poor in-flight services. Checked baggage as well was a high contributor to dissatisfaction among airline customers (American Airlines Group Inc. (previously known as AMR Corporation) SWOT Analysis, 2014).
American Airlines
Of the six airline companies ranked, American airlines ranked fourth with a satisfaction score of 66.
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ACSI
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Additional Fees
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Market Share
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Revenue
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Net Income
|
|
66
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$1,093
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12.7 %
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$26.74 billion
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1.83 billion (loss)
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Below are some statistics about the airline
Table by researcher, Information gotten from the website below
USATODAY:
https://www.usatoday.com/story/money/business/2014/04/26/best-worst-airlines/8144891/
The American Airline company review ratings stood at position 199 out of the 794 companies that were rated in the www. Customerservicescoreboard.com. the overall score stood at 45 out of 200. The overall service comment was disappointing. It has overall 731 negative comments from the customers representing over 85% of the total comments. For the positive comments it only managed less than 15% of all customer comments with only 128 positive comments.
Below are some of the aspects measure and how it scored
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Issue
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Score
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out of
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Issues Resolution
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2.6
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10
|
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Cancellation
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2.2
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10
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Reach ability
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3.0
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10
|
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Being Friendly
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3.9
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10
|
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Product Knowledge and understanding
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3.8
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10
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From the above tabulation of the score it is clear that the company performance is poor because all items measures score less than 50%.
The highest attained 39 % while the lowest stood at 22%.
https://www.customerservicescoreboard.com/American+Airlines
Causes of American Airlines Poor Passenger Service
Industry analysts have come up with practical reasons why the American Airlines is on a free fall. To begin with, the American airline despite being a pioneer in the American airspace, it is not innovating enough to ward off increasing competition from new entrants. There is need for the airline to come up with new ways of serving customers. It ought to understand that the modern customer is increasingly knowledgeable and hence demanding. The company has not implemented proper communication between itself and her customers (Walker, 2013). There is need for the customers to understand what the company is doing. For instance, of late, the company has had many flight cancellations (Walker, 2013).
Whatever the reasons might be, it is important that the company lets the customers know them in advance. This will allow them reschedule unlike keeping them in the dark until the last minute. This only foments anger in them, which can only be vented out through negative comments on company websites and social media platforms (Thomas, 2014). The company as well has a very poor language handling, which is leading to inconveniences to the customers. As if that is not enough, whenever the customers raise issues with the company, it takes long time to resolve the issues brought by the customers. This is a huge turn off for the clients because they feel they are not being valued by the company. The only option is for them to seek services elsewhere. This explained why the company has lost market share from 15% to 12 in less than three years. The company as well has poor employee management strategies. As such the employees feel dissatisfied. Dissatisfied employees render poor services to the passengers (Thomas, 2014).