Imagine a car industry that only offered two models, a Mercedes-Benz (NYSE: DCX) S600 and a Chevrolet (NYSE: GM) Aveo. A restaurant industry that forced you to choose between Taco Bell (NYSE: YUM) and Smith and Wollensky (NASDAQ: SWRG), with nothing in between. A clothing industry that offered only K-Mart (NASDAQ: SHLD) house brands and designer labels, no Old Navy (NYSE: GPS) or Crocs (NASDAQ: CROX).Intolerable, right? We middle-class shoppers demand products with a modest price but acceptable quality.
So how did we end up with an airline industry that offers only two real choices, cattle car or royalty? Where are the middle-class offerings? My wants are not complicated. I want a little more room. I want quicker check-in. I want to talk to real people when my flight is delayed. I want the kind of service I would receive at Applebee's (NASDAQ: APPB), or a Holiday Inn (NYSE: IHG), or (to shoot for the moon), Nordstrom (NYSE: JWN)
Unfortunately, I receive service that is rated by the American public as worse than the IRS, seating reminiscent of my grade-school desk, and the punctuality of a grunge band concert.
The airlines will probably point out the we, the consumers, react only to the bottom line, that only rock-bottom prices are any guarantee of market responsiveness. Thus the continual drive to trim the bottom line, resulting in companies with as much fat as a Darfur food line.
I don't buy this argument, however. I believe the reason we don't have airlines that offer a little more comfort and service for a little more money is that they have not convinced the public that they can deliver such an improved product. JetBlue (NASDAQ: JBLU) is a good example of this. After building a reputation for a better quality experience, they allowed it to evaporate overnight in the recent winter debacle.
I believe the business opportunity is still there, for the airline with the courage to quit fighting for the commodity trade. Some day, an airline will stand up and offer human-class transportation. For 25-30% more, they will offer commodious seats, adequate staffing of the customer service counter, a comfortable lounge in which to wait out late flights, schedules flexible enough to overcome most missed connections, and a well-paid, professional staff. Like airlines of the 1960's.
A middle-class airline. That's all I ask for.











Reader Comments (Page 1 of 1)
6-28-2007 @ 2:55PM
apswws said...
Airlines could offer better service in the 60's because they were regulated and didn't have to compete for customers. If you wanted to go somewhere, you took the airline that serviced that location. This cut out duplicate schedules and costs along with more full planes.
6-28-2007 @ 2:56PM
wendy said...
I agree with this posting about how airlines have lost their way. They need better customer service, bigger seats for all and well-paid employees.
http://www.wendyThilltravel.com
6-28-2007 @ 2:56PM
Mike said...
Dream on, Tom. It just ain't gonna happen any time soon. Interesting that you would mention the airlines of the '60s. You see those were the airlines prior to Alfred Kahn and Jimmy Carter who decided that unbridles competition would be very good for a "commodities/service" industry like the airlines. Well, their dream has come to full fruition and we see what unbridled competition has wrought. We now have the internet where most everyone at least checks fares prior to booking a flight. If your fare is even $5 more on a route segment, not only will very few choose to buy your ticket, most will not even know about it because it will show up on about page six of the web site display. Tom, you indicate that you would pay 25 to 30% more for full the service you desire. I wonder? Maybe you would do that once or twice, but my bet is that by then you will have heard how much your friends have saved and you would then decide to "take a chance" with a cheaper fare. I am a 26+ year veteran pilot with a major carrier, and I have witnessed the meltdown of our industry up close and personal. There may be a few like you who value full service, but the majority, the majority who dictate fares and the type of service airlines can afford to offer, are more price conscious. The majority of airline employees want to offer the service you desire, but we simply do not have the tools or the financial resources to do so any longer. You see, the bulk of the traveling public are getting pretty much what the pay for. And no, weather is not always the problem; sometimes it is our antiquated FAA air control system that our Congress refuses to invest in. There is plenty of blame to go around, but it finally, as it always does, comes down to money and how much the consumer is willing to spend. So far, there has always been an "airline" of some sort who will agree to carry folks for less. The lowest fare carrier that can stay in business ultimately sets the standard for price and service.
6-28-2007 @ 5:52PM
morner1 said...
Great posting. I'd pay a little extra for some of the things mentioned. There should not be just 2 options as articulated!
6-30-2007 @ 11:30PM
Terry said...
Ever hear of the expression "you get what you pay for?" Well in air travel this statement is so true. The traveling public, thanks to deregulation, has enjoyed price competition at it's finest. Today's middle class can certainly afford for better service but they are not willing to pay the price. When you can go from the northeast to florida for $100 round trip how can you even think that paying $250 for the privalege of talking to a real person or better food is ever going to happen. My friends this is how it is. In many cases, they want to pay $100 for that seat and still sit in first class.
In contrast to hotels, airlines are basically screwed when trying to get a fair price for their services. It's more expensive to go Greyhound than it is to fly. Check the prices you'll see that it's true.
When you get to your destination are you going to the Motel 6 or the Marriott? And oh by the way, what are you paying? After all it's a room with a bed and a bathroom. Now the folks that want a nicer accomodation with down comforters, room service and the like will pay the $200 per night for a hotel. The folks that don't, will go to the Motel 6 for $49 per night. You make the choice. The next time you fly and think that you're not getting value for your dollar, middle class or other wise think of this. In 1980 a airline ticket in coach would cost you about $300 (advance purchase etc) RT from LA to NY in coach. Fast forward 27 years later and that same seat is still $300 on a good day. Do you know of any other product or service that is still the same price after 27 years?
7-02-2007 @ 7:26PM
jim said...
Good idea Tom. Unfortunately, the airline industry is unlike any other for the mere reason it IS and ISN'T regulated by the goverment. Deregulation has cheapened the fares and given us more routes BUT the government and for that matter foreign goverments have their fingers on every departure, landing, route and carrier access to those routes. Then throw in the ATC (run by the government & basically 30 years behind in terms of technology and staffing,) combined with the ever-increasing traffic into the airports themselves, (also government controlled) and you have one BIG MESS! One that befits your comment about the IRS.
The only solution to your dilema is for the airlines and your congressman to hear from you. We need a air travel bill of rights that protect some humanity for passengers and crew in the U.S. It is a sad fact that the FAA and the Airline industry have refused to manage these problems themselves. It is time for something to be done. Most foreign carriers already have basic protections and if you travel on British Air, or virgin even GOL (S. America's Southwest) you'll see a huge difference.
7-08-2007 @ 4:54PM
Sarah said...
Oh, do you mean the 1960's when people actually got dressed to get on an airplane? Or, they actually said please and thank you? Or, when they fit into an airplane seat? Or, do you mean the 1960's before deregulation when there were high airfares and the "new middle classless" rode on Greyhound? Which middle class? Which 1960's? Today's "middle class" are PIGS!
8-23-2007 @ 3:52PM
Joan said...
Yes. Deregulation has hurt the customer, but it also probably drove prices down which creates a cattle call. My father used to say in the 70s that deregulation of the utilities would lead to bad things. He was right.
As far as Delta stock being up--I'm not surprised. I've traveled with them lately on a long flight and was pleasantly surprised. They were courteous and actually served food and beverages. I had not seen food on an airline in quite some time. As for US Air--they had no food/beveridges and two flights. They just announced it like the theatre does when a movie is sold out. Not having water on board is atrocious. It's well known that airline travel dries you out at a fast rate. US Air/Republic has problems. I'm surprised they are still in business.
7-25-2007 @ 3:54PM
c. langer said...
travelers without a sense of courtesy to eachother, development of a narcissistic society, people becoming fatter, having difficulty fitting the seats and even moving around on the plane, parents letting their children show off their atrocious behavior on the plane, etc.
LOOK AT YOURSELF and BE THE CHANGE YOU WANT TO SEE..oh right I forgot to add to my list about the loss of a sense of personal responsibility to my list.