This post is part of a feature on companies and products that our bloggers think are in need of a makeover. See all 26.
This summer I had the misfortune of flying AMR Corp.'s (NYSE: AMR) American Airlines. In my experience, it ranks near the top in its expression of contempt for its customers. As I wrote in my book Value Leadership, it is almost the opposite of Southwest Airlines (NYSE: LUV), which has tarnished its flawless image with its first quarterly loss in 17 years due to a $247 million charge resulting from a jet fuel hedge gone sour. But to give American Airlines a makeover, it would be wise to borrow selectively from what makes Southwest so great.
In August, I was scheduled on a 1:50 pm flight from Boston to Miami -- trying to get a connecting flight to Chile on its excellent airline, LAN Air. American Airlines said the flight would be delayed for 15 minutes because of a mechanical problem that caused the air-conditioning in the back of the plane not to work. Half the plane got out, and an hour later American Airlines announced an indefinite delay.
A big line formed at our gate to rebook. Next to our gate was an empty one with two American employees who were working on their computers. I waited patiently until one of them finished her work and asked if she could help me. She stared at me and said no, she could only help people on the flight scheduled for that gate, and went back to her computer. No thanks to her I ended up booking a flight that left at 6 pm, causing me to miss my connection to Chile.
American Airlines probably does not treat its employees very well, and employees share that meanness with their customers -- at least they did with me. And I would certainly go out of my way to avoid flying that airline again. Evidently, it is not doing too well making money for investors either -- it just reported a $360 million operating loss accompanied by a 5% drop in passenger traffic.
I do not think it is possible to fix American Airlines. But, as I posted and wrote in my book, Southwest does many things well, including hiring people who enjoy serving others, treating them well, and rewarding them for creating happy customers. This is much harder to do than it is to say.
If American Airlines figures out how to achieve this, I will gladly fly it again.
Peter Cohan is president of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.
Does American Airlines need a makeover? What would you suggest? Be sure to check out the other makeover posts.











Reader Comments (Page 1 of 2)
10-23-2008 @ 9:14AM
alnola said...
One bad experience does not make a history. What was the weather like that day; what was happening with other airlines; did you try and rebook through the 800# or at the BOS rebooking center?
I fly AA all the time, most times they are better than the others, sometimes equal to and rarely worse. Try flying United, which is ow "Greyhound of the Air". Also, it is really necessary to keep repeating "as I posted and wrote in my book".
10-23-2008 @ 9:15AM
Beth Rasmussen said...
I would much rather fly American than Southwest. My husband is 6'3" and Southwest is extremely cramped, very little leg room. At least American is more comfortable and when booking a trip, we usually find as good or better deals on American.
10-23-2008 @ 9:29AM
No Phones? said...
I had to postpone a flight because of emergency surgery. AA still charged me $150. Sorry AA but my $150 won't help you get in the black but it helps put me into the red. You just lost another customer.
10-23-2008 @ 9:31AM
nadia said...
I think you are completely correct in your assessment. I flew American to orlando last wekk and it was not the best experience. I booked my flight in February and was set to go but in September the Airline canceled that flight and moved me to a new flight. The original was a direct flight the new one was not and I only had about 20 minutes to go from one extreme of the airport to another. On top of that I flew with all my family (8 of us) including 4 small children. What did American do? they placed us all on seperate seats one in 13b the other 17a the other in 15f and so on. I called the airline to explain that I have small children and needed to have someone sit with them and the lady on the phone was rude and nasty. She siad the airline could do whatever it wanted and there were no seats available to change,she said to go to the gate 2 hours early and try to get the blocked off seats. I went to the airline 3 hours early, I requested the blocked seats and explained my situation the attendant said there was nothing she could do because she had 18 other people booked in the flight with no seats and that I should be happy we have seats at all. Luckily I found other passengers willing to switch with me so we able to sit atleast in pairs so the kids would not be alone. Never again am I flying american. I used to love to fly I go to LA, Orlando, and Central and South America very frequently through American. Now, I will be taking Continental or Delta. They have no people skills and their level of compassion and empathy is at 0 and on top of that are more expensive then Continental. I never minded paying for great service but without that American is definitely not worth the money.
10-23-2008 @ 9:45AM
nadia said...
I totally agree with you. I took an american flight last week to orlando from ny and the experience was not great at all. I booked my flight in february for 8 people (4 children included) we had a direct flight and were sitting all together. In september american cancelled my flight and swithched to a another one which was not direct. On top of that they also sat all of us seperated so as the children would be sitting alone. I called american and explained that the children could not sit alone and that this was not my fault since I booked in february, the lady said that the airline could do whatever it wants and that she could not move my seats. She said I shoudl e at the airport 2 hours before to get the blocked off seats that are availabel specifically for that type of situation.
I arrived at the airport 3 hours early, I approached the attendant and told her my situation, she asiad that the flight was overbooked by 18 people and that the blocked off seats were only a few and that she needed them for them. she also said that I should be happy I have seats since all those other people do not. I told her that if she moved us to the blocked seats then our seats would be available and then she could placed the other passengers there she said she could not do that. I was very frustrated but didnt fight instead I went talking to people and some passsengers were nice enough to switch seats so we sat two together and three together and so forth. thankfully the kids did not sit alone.
I used to travel american to LA, Orlando, Central and South American. I paid more money because I liked the service even though continental, delta, taca and lan chile are alot cheaper. Believe me from now on I am not traveling American anymore. Their level of compassion and empathy is at 0. their customer service is at 0. I am a nurse and work at a hospital and I know we all have our bad days but this mentality seems to company wide and they need to change ASAP.
10-23-2008 @ 10:00AM
Jim Weeks said...
You make an excellent point about the ability of Southwest to recruit people who like helping people. Passengers see these front line people as the heart and soul of the airline. Customer service and a caring attitude are traits the traveling publice always appreciates from an airline's employees.
Last Friday my wife and I were on a Frontier flight from Denver to LA that was suddenly cancelled for mechanical reasons. We joined a large snakeline of other passengers at the Frontier customer service desk. All of a sudden one of the Frontier customer service reps just got out of her chair and left. Nobody was there to take her place. I told one of the other reps about how bad this looked. She agreed and said she would inform her supervisor about what happened. I hope she did.....Frontier probably lost some customers that day.
10-23-2008 @ 10:06AM
j said...
Nadia: Why couldn't the grown up each take a kid and sit next to them? Why they have to sit alone?? Dosen't make any sence.
10-23-2008 @ 10:21AM
Cara said...
To Nadia,
After spending twenty years as an airline employee, not in passenger service, I can promise you that anyone who was assigned to sit next to any of the children in your party would have been delighted to trade with you prior to the departure of your flight! Just let your little darling sit in the assigned seat and when you come to check on them, that person will be happy to take your seat.
10-23-2008 @ 10:24AM
frankie said...
I had the worst service with American Airlines and will never fly them again. I was flying from Chicago to Miami with them and then taking LAN to Lima, Peru. The flight from Chicago left over 3 hours late and pretty much everyone on the plane missed their connections to Peru and Chile. Everyone on the plane had to stay the night in Miami. I asked for a free or discounted hotel room since I was traveling with my six year old son, and they said that they were not offering that option to anyone. Then they were getting mad that not everyone was in a straight line, you have to remember that a lot of these people were Peruvian and Chilean and may not have understood, and they threatened to close the counter and let us figure things out on our own. I have never been treated with such disrespect and contempt. The employees did not want to help. I had to stay in Miami that night, spending $86 on a hotel room, and then spend the next day at the Miami airport since the flight did not leave till 4pm. Not only did it mess up travel plans I had in place for when I arrived in Peru, but the worst part is that when they canceled me on the LAN flight GOING to Lima, they also canceled my RETURN flight. I did not find out about that until the day before I left Peru and had to take hours out of the last day of my vacation to get it straightened out.
10-23-2008 @ 10:44AM
Ramona Gillings said...
People only seem to write when they want to complain. I, however will write for another reason. I have been flying American Airlines for forty years, and have always had excellent experiences, flights, and service from all employees!!!! Once again, on a flight from Paris, France this month, I was treated kindly, with patience, and effectively from all AA staff!! I arrived late to check-in due to a problem with the shuttle- taxi to the airport, and difficulty in gwetting another at such an early morning time, and the AA staff showed much compassion and put me ahead of the check-in line and security-line, so that I would make my flight in time! The attendants on board were very helpful and considerate and helped me get settled on board, as the last person to board the plane, and immediately offered me any beverage I desired. The flight was perfect, the food was excellent, and all employees very corgial. I will continue to fly American Airlines for my lifetime!!! When you travel, as I often do, you must expect some glitches that are not necessarily the fault of the airline, and have some patience and understanding for their situation. Relax, and go with the flow, as long as there is no serious tragedy involved!!!!! Bon Voyage!!!
10-23-2008 @ 10:49AM
Beth said...
American Airlines left our local airport. The local community is at a loss since they departed. The next nearest airport that they fly out of is in another county, 1 and 1/2 hours away. The parking fees at this airport are based on a daily, not weekly rate. The cost is very pricey. In addition, this airport that houses AA doesn't have jet waves to get into the plane. You have to walk up a dinky, flimsy staircase to board the plane. It's a hardship for handicapped people. Does AA care? Not in the least. My husband & I now fly Southwest were we are treated with courtesy & respect & the prices are much lower. Shame on AA! If their profits are going down they've brought it on themselves. I haven't any remorse for them.
10-23-2008 @ 11:01AM
Tom said...
Hey guys - your terrible tales of AA get my sympathy. But, when was the last time you flew Delta, United and USAir? Take it from me (a multi million miler) - they are all bad. The US carriers are poorly managed, big money loosers, arrogant, and have forgotten what customer service even is. In addition, their planes are old and dirty. I have had issues with SouthWest as well. You know what they say about SW however? "They promise you very little, But they deliver"
10-23-2008 @ 11:21AM
Myrtia Rodriguez said...
NO Customer service is an issue that I have experienced across the board of services; airlines, restaurants, banks, retail, etc. Even the government is guilty of "lack of regard for the citizens" of this country. Why would any organization want to be different when the powers that be are doing the same.
Everything costs more but the value is less, taxes are raised, wages can not keep up, you follow the rules, your still not regarded. One has to be extremely wealthy to get exemplary service, tax breaks and someone to watch your back.
It's as if, the money within the middle and lower classes doesn't amount to anything and we are the largest group in the country. It doens't matter that one purchased a ticket several months in advance, you are treated as if you stole it. It doesn't matter that you've been a customer to your neighborhood bank for over 10 years, a small error will cost you big fees. It doesn't matter that you aren't able to afford to send your kid to college, because your income is considered to high for assistance and to low for tax breaks.
Consumers don't matter anymore to big business, governemnts etc., except to charge more for less, care less and ultimately not give a hoot about what you think, how you feel about it or them.
It is a pity to know that common decency is not included in the formula of success.
10-23-2008 @ 12:47PM
JEN said...
I flew UA recently and although the flights were great, we waited 4 hours to have the plane fixed. No apology, no vouchers, lousy communication. I don't think the airlines understand that the customer service is a huge part of who we fly. Pay the people more and you would get people who are good at the job. Many of the reps. have no business working with customers, they hate it. I heard one at SFO for UA tell a customer when she needed help checking in "this isn't rocket science". How rude!
10-23-2008 @ 12:51PM
Jeffrey Ziehl said...
The previous statement about all of the airlines offering poor service is all too true. None of the American airlines offer good customer friendly service. I hate flying, not because of any fear of flying, but that the employees and policies treat passengers as if they are unwanted and less than an insect. I have experiences with delayed flights, no information available, no service on board or treated as if its a real effort to serve me a soda; and the charges for pitiful onboard food is a most certain overcharge.
10-23-2008 @ 1:14PM
Jill said...
Another airline the others would do well to emulate is AirTran. Upgrade to business class for $35 - $50. Even coach class seats aren't as bad as those big airlines. Once I was able to book two seats to give myself some more room in coach for a lot less than first class, but the airlines won't allow you to do that anymore. And frequent flyer programs? Why bother when the number of seats available is so small. Also, the fees! I tried booking a "free" flight on Delta from Akron to New York, and the fees charged were $129! AirTran's frequent flyer program is much more user-friendly, and seats are available on almost all flights.
10-23-2008 @ 1:39PM
Duane said...
To all the Paying Customers that has had Unfair service from American Airlines, it will change';
What "American Airlines" needs to do is CHANGE the way they think about their CUSTOMER'S and Focus more on there KOLOUR'S and stay "True to the, Fast to the, Obedient to the Real" and things will turn around for the Kompaiknee' it is a simple process contact me MR. CEO and may be the flight out to talk with you will be an enjoyable experience and turn the ORGANIZATION around, waiting to talk with each of you {employee's}!!!!
C.e.O. dapair3
10-23-2008 @ 1:40PM
es said...
aa is horrible no question - you are treated like dirt
10-23-2008 @ 1:54PM
Rhonda Antell said...
I have been a frequent Southwest Airlines flyer. One thing I have enjoyed has been the ability to earn free flights. You actually do get them. They are not just this pool of air miles that are difficult, if not impossible, to redeem.
American Airlines should try to position itself with something special. Customer service would be a nice start. But also small things that make traveling more enjoyable and a treat again. Examples - free headsets, movies, small toys for kids (like the McDonalds happy meal).
10-23-2008 @ 2:11PM
Chris said...
I asked a flight attendant from AA to help me lift my bag up to the storage over the seats....she said....."that is not what I am here for"......I swear......my jaw dropped....and this was in first class.........3rd class airline.....sitting in first class I observed how filthy the seats are , the trays you pull out to eat on are disgusting and the "1st class service" was non existent......I, too, avoid American Airlines