Study: Complaints About Airlines Rising In The US

Apr.06, 2008 in Market Outlook

Last Update: 4/6/2008 9:56:20 PM

WASHINGTON (AP)–Late flights and lost bags, to say nothing of higher fares, are
making U.S. air travelers grumpy, an annual survey of airline quality says.

The industry posted declines last year in every area of the Airline Quality
Rating, amid rising fuel prices, safety problems and bankruptcy filings that shut
down three carriers last week alone.

The biggest change was in the rate of consumer complaints, up 60% overall. The
rate more than doubled at US Airways Group Inc. (LCC) and Comair, and rose for 15
of the 16 airlines included in the study. The exception was Mesa Airlines (MESA).

On-time arrivals dropped for the fifth straight year, with more than one-quarter
of all flights late, according to the survey. The rates of passengers bumped from
overbooked flights and bags lost, stolen or damaged also jumped in 2007.

“The trend is bad and it doesn’t look like it gets any better,” said Dean
Headley, an associate professor at Wichita State University and co-author of the
study being released Monday.

The survey results mesh with the spate of problems that have beset U.S. carriers,
starting with surging fuel costs, Headley said.

ATA, Aloha Airlines and Skybus stopped flying just last week because of financial
pressures. Major airlines have slashed jobs and passenger amenities while adding
fees for second bags, traveling with pets and booking tickets by phone.

It is not surprising that people responded to higher prices and more frequent
delays by complaining more, Headley said.

Six airlines - Frontier Airlines Holdings Inc. (FRNT), Northwest Airlines Corp.
(NWA), SkyWest Inc. (SKWS), Southwest Airlines Co. (LUV), United and US Airways -
showed declines in every area in the survey, although Southwest still had the
best on-time arrival mark at 80.1%.

The Dallas-based carrier also had the lowest rate of consumer complaints, 0.26
per 100,000 passengers.

Still, the airline has not been immune from problems. It is fighting a record
$10.2 million fine from the Federal Aviation Administration for continuing to fly
dozens of Boeing 737s that had not been inspected for cracks in their fuselages.

American, Delta Air Lines Inc. (DAL) and United airlines recently canceled
flights to perform unscheduled inspections of certain aircraft, and US Airways
found problems on some Boeing 757s after a wing part on one of its planes fell
off during a flight.

The Airline Quality Rating study, compiled annually since 1991, is based on
Transportation Department statistics for airlines that carry at least 1% of the
passengers who flew domestically last year. The research is sponsored by the
Aviation Institute at the University of Nebraska at Omaha and by Wichita State
University.

The other airlines in the survey were: AirTran Holdings Inc. (AAI), Alaska Air
Group (ALK), American Eagle, Atlantic Southeast, Continental Airlines Inc.(CAL),
JetBlue Airways Corp. (JBLU) and Mesa.

Among the study’s conclusions:

-The rate of consumer complaints about Mesa dropped by one-third and the airline
also showed improvement in its rates of bumping passengers and mishandling bags.

-More than one-third of Atlantic Southeast Airlines flights were late, the worst
on-time performance in 2007. The airlines also bumped passengers more often, at a
rate of 4.5 per 10,000 passengers.

-JetBlue and AirTran were far ahead of their competitors in avoiding bumping
passengers from flights, at 0.02 and 0.15 per 10,000 passengers, respectively.

-AirTran had the best baggage handling rate, at 4.06 mishandled bags per 1,000
passengers.

-American Eagle ranked last in baggage handling with 13.55 mishandled bags per
1,000 passengers.

On the Net:

Transportation Department: http://www.dot.gov

Study site: http://www.aqr.aero/

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