More offloading stories: What’s right, what’s wrong?

Suddenly, following the United Airlines incident of a passenger being forcibly removed from the aircraft in an overbooked situation (see The saga continues: United Airlines CEO promises no repeat of David Dao incident, Apr 14, 2017; United Airlines flew deeper into a PR storm, Apr 11, 2017; Fly the friendly skies? Not on United Airlines, Apr 10, 2017), air travellers are awakened to the harsh reality that even when they hold a fully-paid for confirmed seat, there is no guarantee they may not be bumped off.

Suddenly too, stories about more incidents of being bumped off are circulating via the social media.

#1
A passenger travelling with her husband and a child happily publicized a windfall when Delta Air Lines compensated her US$11,000 for giving up their seats.

Yes, Delta has announced a change in its policy to compensate volunteers an amount as high as US$10,000 for giving up their seats. More specifically, gate agents can offer up to US$2,000, up from the previous maximum of US$800, and supervisors can offer up to $9,950, up from $1,350.

That’s mighty generous of Delta, and why not if it means taking down the competition? However, a recently published list of the ten worst US carriers for overbooked flights did not list Delta, which means the offer may not be made as often as you might think.

Many people believe if United had upped the compensation, it would have been spared the bad PR patch it went through.

#2

Courtesy Air Canada

Just as soon as the Canadian authorities quickly reacted to the United debacle and vowed to protect consumers’ rights, a story surfaced of an incident on Air Canada of a 10-year-old child being denied boarding. His mother asked if an adult travelling with them could give up his seat for the child and was told that seat could not be guaranteed for the boy and would likely go to another passenger.

Oh, come on, Air Canada, to think this could happen in a country known for its people’s compassion!

The airline now said they were “following up to understand what went wrong” and that they had apologized to the family and offered a C$2,500 (US$1,866) voucher. If only airlines could understand how money cannot adequately make up for a disrupted holiday and the stress they caused, all the more in this case of separating a child and his parents.

#3
A couple posted their story of being asked to leave the aircraft of yet another United Airlines flight, and this was not a case of an overbooked situation. Apparently they found another passenger lying across their assigned seats, asleep, and decided to sit in a different row which happened to be “economy plus” seats . According to the crew, the couple tried to sit in an upgraded seat and refused to comply with instructions to return to their booked seats.

Well, well, it looks like anything United now does that displeases a passenger is wrong, even if it means following the rules. It is every traveller’s right to heed the call to boycott the airline after the way it treated passenger David Dao, but it is not fair to take advantage of the airline’s vulnerability.

Things are getting better for Economy travel

Courtesy Getty Images

American Airlines is not going to let rival Delta Air Lines go it alone in bringing back free meals for their flights. (See Delta Air Lines ups the ante, reintroducing free meals in Economy, 19 Feb 2017) However, American will for a start reinstate the freebie only two domestic routes – New York to Los Angeles and New York to San Francisco. Nevertheless it is an indication of how the competition is heating up, and how the game has come a full circle. It is only to be expected that United Airlines (and others) will follow suit.

In the end, it is not a matter of the meals but one of being ahead in the game, doing something different. Interestingly, across the pond in Europe, British Airways (BA) is doing away with free meals and has announced plans to add more seats in Economy, thus reducing the pitch. (See British Airways is becoming more “budget” than Ryanair, 7 Mar 2017) Here the critical question is whether BA is a leader or a follower in the European context, although it appears it is somewhat of a Johnny-Come-Lately and what Delta and American are doing may force it to re-think its strategy.

At no time than now is coach travel getting more attention from the airlines, which understandably have been paying lots more attention to the premium product because of the higher yield. (See Cathay’s loss is a sign of the times, 16 Mar 2017) And that’s good news for the majority of travellers.

Delta Air Lines ups the ante, re-introducing free meals in Economy

Courtesy Delta Air Lines

Courtesy Delta Air Lines

While British Airways (BA) came on lately to charge for meals on the short haul – something which North American carriers have been doing for quite a while now (see No more free meals for BA short haul, Jan 16, 2017), Delta Air Lines across the pond is re-introducing complimentary meals in Economy on March 1 following a trial last year. The offer even comes with a choice of selections, for example, a mesquite-smoked turkey combo, Mediterranean whole-grain vegetable wrap, or fruit and cheese plate.

What is interesting is how the business model keeps shifting as the competition heats up, and how things sometimes come a full circle to what they used to be. Meals used to be part and parcel of the total package, so too checked baggage, seat selection at time of booking, and seats with more leg room. The budget model of product unbundling and add-on charges soon became a way for airlines to be seen as offering lower fares and at the same time a source of ancillary revenue. It is to be noted that some airlines are still offering the freebies, notably Asian carriers such as Singapore Airlines and Cathay Pacific which, for example, are still allowing two pieces of checked baggage.

The crux of the game is really one of staying ahead of the competitors – and while BA becomes a late follower in charging for meals (but fortunately in a different market), Delta is shaking up the game with re-introducing an old practice which may soon be followed by rivals for the same routes, among them American Airlines, JetBlue Airways and Virgin America.

Virgin America tops, according to Conde Nast

Courtesy Virgin America

Courtesy Virgin America

Virgin America is the best airlines in the US according to a readers survey by Conde Nast. It is a credible list.

The top five airlines are as follows:

1. Virgin America, for its service and roomy cabins that include such features as touch-screen menus ordering, seat-to-seat messaging, no shortage of power outlets, Netflix streaming and mood lighting.

2. JetBlue Airways, for its ten-inch seatback screens, entertainment streaming options, free internet, unlimited blue chips and snacks.

3. Hawaiian Airlines, for its lie-flat seating in the premium cabin, welcome mai tais and guava cookies, and reputation for punctuality.

4. Alaska Airways, for its friendly staff, comfortable seats, reliability and guarantee that checked luggage will arrive no later than 20 minutes after touchdown.

5. Southwest Airlines, for its fun staff, affordable fare, two free checked bags allowance and any change of ticket without penalty.

Worthy of note is the ranking in the top five positions of both Alaska Airlines and Virgin America, which have since merged but continue to operate under their different names for the time being. Their merged identity is set to be a major aviation powerhouse in the US,

Also worthy of note is the absence of the big three US airlines: American Airlines, United Airlines and Delta Air Lines. Size is not a plus in this case, it seems.

What conclusions can you draw in an airlines survey?

SIA courtesy SIA

WE continue to be fascinated by rankings of the world`s best airlines, although the results of most surveys – take away some bias here and there – are quite predictable and almost similar across the board. The winners by and large boast excellent cabin service, great food, comprehensive in-flight entertainment and innumerable choices, more generous legroom than what their competitors offer, and frills such as complimentary champagne and brand name overnight kit. It is all about creature comforts. And the impressions are understandably almost always skewed by the luxuries of the upper classes.

Traveller magazine Conde Nast has just posted its list of the world’s best airlines, surveyed among some 128,000 readers. Of course this is not the definitive list of excellence to the detail, in the same way that no other list can be as definitive without considering factors such as the type of respondents involved, the scope of the survey and the criteria adopted, but there are nevertheless interesting conclusions to be drawn from them. So often it is more interesting to look at the omissions.

Long haul can impress or disappoint

Singapore Airlines (SIA) is a perennial favorite of Conde Nast readers, ranking top for 27 of 28 years. It is hardly surprising, which to be saying it seems even redundant. The airline has long earned the reputation as one of the world’s best airlines, and is frequently celebrated in other surveys as well. It was ranked second after Qatar Airways in the last Skytrax survey. It is hard to find a match that depicts consistency in excellence. The real clincher seems to be in its long haul operations – such flights that are likely to elicit the flaks when passengers are apt to become more stressed and demanding. Here is where SIA is able to make the difference by a well-trained crew that anticipates a passenger’s needs, always mindful the passenger’s comfort first and foremost in the service.

All the airlines in Conde Nast’s top ten are long haul operators, with the exception of Porter Airlines which is more a city shuttle that flies between Toronto in Canada and US destinations such as Boston, Charleston and Myrtle Beach.

While the long haul impresses, it can also take apart an airline’s reputation, which explains why some airlines are inundated with complaints about being handled like a can of sardines. Interestingly, the Conde Nast list of best American carriers is made up of short-haul operators to the exclusion of the big three of United Airlines, American Airlines and Delta Air Lines. Virgin America is ranked first followed by JetBlue, Hawaiian Airlines, Southwest Airlines and Alaska Airlines.

Dominance by Asian and Gulf Carriers

Again, it is not surprising that Conde Nast’s top ten ranks are dominated by Asian and Gulf carriers, which together were placed in not only in the top three ranks but also seven of the top ten positions. The Gulf big three of Emirates Airlines, Qatar Airways and Etihad Airways were second, third and fifth respectively. Qatar was tops in the earlier Skytrax survey, ahead of Emirates (5th) and Etihad (6th). Other Asian airlines in the Conde Nast list are Japan Airlines (6th), Korean Air (7th) and Cathay Pacific (10th). Both SIA and Cathay were also ranked among Skytrax’s top ten airlines.

Dominance by Asian and Gulf carriers means the stark exclusion of airlines of other regions. Only one European airline – Virgin Atlantic – was listed, and in fourth placing. One asks: Where are British Airways, Air France and Lufthansa although going further down the list you will find Swiss International Air Lines (17th) and Finnair (20th)?

That and the marked absence of US carriers demonstrate the superior service culture of Asian and Gulf carriers and their growing popularity that continue to put pressure on their rivals in the competition. The US big recently accused the Gulf big three of unfair competition supported by state subsidies. In truth, North American airlines are not inefficient, but they lack the soft pampering touches of their competitors. There is a host of pertinent questions. Can US carriers be as friendly or, to go one further, do better? And, ultimately, do they even see the need?

Luxury improves image

Etihad boasts the “residence” suite that comes with a bedroom, private bath with shower and lounge. That is for now the forerunner in the race for the ultimate luxury in the air, leaps ahead of SIA’s first class suites and all the other airlines’ flat bed allures. There are also the extras: Etihad provides a concierge service that will make a dinner reservation for you when you land, and some airlines offer door-to-airport limousine services. The slant towards premium classes is to be expected, for that is what makes news even as the perks are limited to a smaller but more lucrative market of the travelling population. If there is one airline that seems to be doing much more for coach than many others, it is Air New Zealand, which offers “Skycouch” in economy – seats that can be converted into a lie-flat double bed – but then again, this is limited to only three seats in the cabin, reminiscent of the days when EVA designates a small number of seats as the ill-defined premium economy before the subclass takes on an identity of its own today.

Comparison is the crux

In any survey, the crux is the comparison, particularly when they are all said to be providing good cabin service and excellent food amongst the creature comforts. The Conde Nast survey again surfaces the rivalry between SIA and Cathay Pacific in the top ten, favoring the former. Interestingly, Japan Airlines (6th) is ranked ahead of All Nippon Airways (11th), and Korean Air (7th) ahead of Asiana Airlines. That indicates a reversal of order that has been the reading of many past surveys, and may well portend how the competition may be trending.

In the case of Gulf carriers, the ranking rivalry among Emirates, Qatar and Etihad is very much a close call going by several international surveys. At the same time, we cannot ignore the inclusion of Turkish Airlines in Conde Nast’s top 20. Turkish was fourth in the Skytrax survey.

In the close rivalry between Qantas (15th) and Virgin Australia (19th), the former continues to enjoy an advantage over the latter.

What else matters? All the hype about going green as the world becomes increasingly conscious of the impact of climate change? That Korean Air prepares its food from humanely raised and organically grown produce. That El Al offers an iPad rental program. That Virgin Atlantic has a stand-up bar. That Qantas offers Select on Q-Eat that allows you to pre-order your meal. That Air New Zealand makes its safety presentation more entertaining than others. That British Airways allows you to log on to a movie as soon as you board and stay with it until the aircraft is docked at the gate on arrival. The list goes on. And one wonders.

This article was first published in Aspire Aviation.

Way to go: Delta, United and American ban big game trophies carriage

I applaud US carriers Delta, United and American for banning the carriage of big game trophies on their flights, as I did Cathay Pacific and Singapore Airlines for banning the carriage of shark fins in view of the inhumane harvesting.

Yet I find it strange that some people were pressing to know the “official” reason why. Where were they holed up when an American dentist killed Cecil the lion in Zimbabwe?

Courtesy Wikimedia Commons

Courtesy Wikimedia Commons

Delta Air Lines announced in a brief statement: “Effective immediately, Delta will officially ban shipment of all lion, leopard, elephant, rhinoceros and buffalo trophies worldwide as freight.”

It’s good enough for me, as for the thousands of people who could not understand why Cecil (and others) should suffer such a fate for the pleasure of some egomaniac who needed badly to impress some barmaid or prove to his friends he had something between his legs lest we forget.

United Airlines spokesman Charles Hobart said: “We felt it made sense to do so.”

Business is not all about making big money alone. Walter Palmer from Minnesota who killed the tagged animal was said to have paid US$50,000 to hunt Cecil, a major tourist attraction in the Hwange National Park and a subject of research at the University of Oxford.

Money talks, but moral responsibility keeps businesses in check to do the right thing, earning the people’s respect and support.

Delta Air Lines extends its wings

Courtesy Airbus Industrie

Courtesy Airbus Industrie

The saga of Japan’s bankrupt Skymark Airlines has shifted attention from the plight of the damsel in distress to the competition among prospective white knights in waiting. Delta Air Lines has emerged as the frontrunner to the rescue of the beleaguered carrier, strongly favoured by Skymark’s creditors, Airbus Industrie and aircraft leasing firm Intrepid Aviation Group which have become kingmaker in the game. Of course, much also depends on the Japanese government’s position on a foreign carrier’s investment in the nation’s third largest airline.

Other foreign carriers that are said to have expressed an interest, if not now but in the early days, include American Airlines although it already has an alliance with Japan Airlines (JAL), China’s Hainan Airlines, and Malaysia’s AirAsia which had previously entered into a failed joint venture with ANA, which subsequently bought out AirAsia’s stake in AirAsia Japan and renamed it Vanilla Air.

Early indications pointed to ANA as Skymark’s best bet, but that would mean returning to a duopoly between JAL and ANA, not quite the desired situation preferred by the authorities if competition across the industry is to be encouraged. Airbus and Intrepid are trying to block such an eventuality, fighting a rival plan that would see ANA take up a stake of 16.5 per cent in Skymark. As the major creditors holding more than half of Skymark’s debt of 320 billion yen (US$2.6 billion), they are in a position of influence. The troubled budget carrier may also be handed heavy penalties for its cancelled Airbus order. Airbus and Industrie are proposing that Delta be invited to buy as much as 20 per cent of Skymark.

Intrepid believes the proposal “offers the best opportunity to preserve Skymark as Japan’s third largest independent carrier and is in the best interests of the carrier’s employees, suppliers and creditors.”

But is the issue really about preserving Skymark’s independence? Or even about its survival as prospective buyers take centre stage and observers wait to see how that would change the state of play. That can best be understood in the context of what really is at stake in the game.

For one thing, ANA is more a Boeing operator with a current fleet mix of only 6 per cent Airbus and the rest Boeing. It has also said it is not interested in taking over Skymark’s Airbus A330 leases. Delta on the other hand has shown increasing support of Airbus, favouring the European planemaker over Boeing with an order of 50 jets worth US$14 billion last year. Its current fleet mix is a growing Airbus 20 per cent to Boeing 58 per cent that tells the success story of Airbus penetration into the American market.

Skymark’s initial inclination was to work with JAL but was apparently advised not to exclude ANA. The benefit to any airline succeeding in the bid is Skymark’s 504 weekly slots at Haneda Airport, which is advantaged by its shorter distance to the city compared with Narita Airport. Although these slots are meant for domestic operations, it will add to ANA’s strength and increase its dominance at Haneda over JAL. However, ANA has already established other domestic brands that include Peach Aviation and Vanilla Air, and the likely outcome of such an arrangement may see Skymark being drastically downsized through fleet, route and capacity reduction, opening up opportunities for ANA and its subsidiaries – Skymark’s erstwhile competitors – to grow at Skymark`s expense. The authorities too may not be enthusiastic to see a diminished role for Skymark in the name of competition or some semblance of it for local travellers.

Courtesy Delta Air Lines

Courtesy Delta Air Lines

Delta is more likely to keep the Skymark brand intact, at least in the short term, as the Japanese carrier proffers an opportunity to extend its wings farther into the Japanese market. It is also about competition with compatriot rivals American and United Airlines outside the US. All three of them are mega carriers formed from mergers with fellow home airlines in a period of US aviation history marked by Chapter 11 protection, and consequently lifted by reduced competition at home to expand overseas. Since then, Delta has acquired a 49-oer-cent stake in Virgin Atlantic to strengthen its trans-Atlantic connections. It has also formed an alliance with Virgin Australia. What it needs now is an Asian, if not Japanese, partner, noting that both American and United have already forged alliances with JAL and ANA respectively. Hence Skymark looks like a timely opportunity.

Through Skymark, Delta will be able to gain access to many destinations within Japan, providing the channel for feed from and into Los Angeles (and perhaps other US points in the future). Viewed positively, it means Delta will have a piece of the local domestic market as well, something that is often not open to foreign carriers. Yet one is tempted to ask if Delta’s quest is all about banking on domestic connections, which many foreign carriers are quite happy to work through alliances with local partners. Delta will then be competing with JAL and ANA. Singapore Airlines tried and failed in Australia with the setup of Tigerair, which Virgin Australia as the new owner is trying to sustain as a completely local entity.

US carriers may gripe about Middle East airlines making inroads in the US market, but that too is quite a different story. First, Japan is not like the US. In fact, no single country is quite like the US unless you consider the countries collectively, such as the European Union where flying between member countries is not strictly domestic. Second, carriers such as Emirates Airlines are more interested in opportunities for direct access, connecting US cities with the world outside, operating viable links that US carriers may find eating into the domestic market for transfers.

Delta’s own experience of operating from Seattle to Haneda has not been up to the mark because of the seasonal traffic, a service which it will relinquish before the end of the year, making way for rival American to take up the Haneda slot with a second service to Tokyo in addition to its Narita route but flying from Los Angeles. This increases the competition threefold, American competing with not only Delta but also ANA. While Delta has said that the Seattle-Haneda service was intended to grow Seattle Tacoma Airport a gateway, the corollary challenge is growing the customer’s preference for Haneda, which lacks the international connections of Narita. But with an impending saturation at Narita, staking rights at Haneda is an investment for the future.

In a letter to the Department of Transport, Delta cited two reasons for the failed Seattle-Haneda service: “demand…is highly variable, peaking in the summer and declining in the winter; and Delta lacks a Japan airline partner to provide connectivity beyond Haneda to points in Japan and other countries in Asia.”

Interesting that Delta should attribute the failed service to its lack of a local partner, which therefore supports the case for courting Skymark. So also it seems the carrot is bigger than it looks. In 2010 when Skymark became the first Japanese carrier to negotiate a deal with Airbus for four Airbus A380 plus options for two more, it intended to use the aircraft for international routes from Narita to destinations such as London, Frankfurt, Paris and New York. The story sounds strangely familiar of a growing and ambitious airline, and one of a low-cost carrier that may have become neither sufficiently low-cost when buffeted by new competitors such as Jetstar Japan and Vanilla Air, nor adequately rebranded to attract corporate business and the higher end market. And the question, where Delta is concerned, is it looking a little too far into the future?

This article was first published in Aspire Aviation.