Are airlines treating passengers of disrupted flights fairly?

Courtesy Reuters

IF you were travelling on Singapore Airlines (SIA) out of London and your flight is delayed or cancelled, you may be compensated up to €600 according to European Union (EU) regulations. However, if it is an outbound flight from Singapore, what compensation a passenger may receive, if any, will depend on the policy of the airline.

This is because EU regulations do not apply to non-EU carriers arriving at an airport in member countries although it covers all departing flights of both EU and non-EU carriers.

The regulations have recently been extended to include connections even if these are operated outside the EU by non-EU airlines. The ruling states that “an operating air carrier that has performed the first flight cannot take refuge behind a claim that the performance of a subsequent flight operated by another air carrier was imperfect.” It is therefore obliged to offer passengers alternative transport for the disrupted flight, in addition to monetary compensation.

Over in Canada, the Air Passenger Protection Regulations introduced by the Canada Transportation Agency require airlines affected by flight disruptions to meet certain obligations which will apply to all flights to, from and within Canada, including connecting flights. Passengers whose flights are delayed or cancelled will be compensated up to C$1,000 depending on the size of the airline and length of the disruption. Non-compliance carries a fine of up to C$25,000.

Countries elsewhere do not generally legislate on mandatory fiduciary compensation of a stipulated amount for flight disruptions. In the United States, airlines are obliged to compensate passengers who are bumped off a flight due to an overbooking situation (as in the EU and Canada), but there are no federal regulations requiring them to do the same thing for passengers whose flights are delayed or cancelled.

Consumer rights groups have long been pushing for fairer treatment of travellers under these circumstances. Besides arranging meals and hotel accommodation in the event of a long delay, some airlines hand out in-flight gift vouchers, but most do not make any form of financial payment. In many cases the affected passengers get not much more than an apology while they wait to be put on the next available flight.

The International Civil Aviation Organization (ICAO) recognises the vulnerability of passengers and supports “due attention… (which) could include rerouting, refund, care and/or compensation”, but it stops short of spelling out specifics and making them industry standards. The International Air Transport Association is however concerned that airlines may be adversely affected, advocating “an appropriate balance between protection of consumers and industry competitiveness.”

Affected passengers therefore by and large can only rely on the goodwill of the airlines, whose policies differ across the industry. Many of them have come to realise that to take the matter further on their own – including bringing an airline to court – can be tedious, frustrating and, more often than not, futile. What they need is the support of an authority who can enforce compliance within a legal framework.

Yes, even with mandatory compensation in place in the EU and Canada, there have been complaints that the airlines are not forthcoming in meeting their obligations, citing extraordinary circumstances that do not render them liable or delaying payment indefinitely. Still, in the context of good governance, what the EU and Canada have introduced is a significant step forward in recognition of the uphill challenge passengers face in their battle with the airlines for fair compensation.

Some airport authorities fine airlines for flight delays or operating off-schedule because it disrupts and causes less-than-optimal resource allocation that can be costly to the airport’s operations. By the same argument, passengers of disrupted flights deserve to be fairly compensated. The disruption can be costly in terms of making alternative arrangements, staying in some place longer than planned, and losing opportunities as in failing to make a business deadline. Above all, it causes anguish and distress.

The amounts recommended by the EU and Canada are miniscule compared to the fines of up to US$27,500 per passenger imposed by the US Transportation Department for planes left on the tarmac for more than three hours (or four hours for international flights) without taking off. American Airlines and Southwest Airlines share the honour of holding the record fine of US$1.6 million, the former in 2016 and the latter in 2015.

Non-US airlines that have been penalised by the US Department of Transportation (DOT) include Japan Airlines which was fined US$300,000 for two incidents in 2018 in which passengers were made to wait more than four hours on the tarmac before they could deplane.

All these measures serve the common goal of encouraging airlines to ensure their flights operate as scheduled and hopefully too that they become more conscientious about how they treat their customers. However, the fines imposed by DOT do not directly benefit the passengers who are the very reason why an airline is in business.

An example of how an airline may take the EU regulations seriously is when British Airways, faced with the threat of strike action by its pilots recently, informed its customers as early as two weeks of cancellations of some flights to avoid paying compensation.

However, do not expect similar regulations to be introduced any time soon in other parts of the world. For one thing, consumer rights groups do not appear to be as aggressive, and many countries especially Asia are less prone to industrial action. Besides major Asian carriers known for good customer service are more responsive to feedback and complaints and may already be offering some form of compensation even if they are not as generous.

But as the number rises, there is a greater need to ensure that affected passengers are fairly treated. The powers that be can ensure that. According to aviation data and analytics experts at Cirium, about 3.9 million flights or 10,700 a day were delayed by over 30 minutes or cancelled worldwide in 2018. Take a typical day on 5 August 2019.there were 22,386 delays and 1,107 cancellations globally, of which 29 per cent of the combined total occurred in the United States, 26 per cent in Europe, and 34 per cent in Asia Pacific.

Until then, here’s a poser for SIA and the likes: Will they accord the same level of comnpensation to all passengers even if they are not bound by regulations, for no better reason than simply one in the name of fairness?

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2019 Skytrax World Airline Awards: Who are the real winners?

It’s that time of the year when the airline industry is abuzz with the Skytrax World Airline Awards announced recently at the Paris Air Show.

There are surveys and there are surveys, if you know what I mean. Skytrax, which launched its survey back in 1999 (according to its website) is generally viewed with some regard. It is said that more than 21 million respondents participated in the 2019 survey.

But what can we read of the results?

Which is the real winner: Qatar Airways or Singapore Airlines?

Qatar Airways switched places with last year winner Singapore Airlines (SIA) to be the world’s best airline.

As far back as 2010 until now, the two airlines have been ranked one behind the other in the top three spots, except in 2012 when Asiana came in second place between Qatar the winner and SIA in third position. In the ten year period, SIA came behind Qatar in eight years, except in 2010 when SIA was second and Qatar third, and last year when the Singapore carrier became the world’s best ahead of Qatar in second placing.

It looks like a tight race between Qatar and SIA for the top spot, and going by the survey results, Qatar has outranked SIA. It has become the first airline to have won the award five times, one more in the history of the awards.

But SIA is still ranked ahead of Qatar for first class and economy class.

In the first class category, Qatar is not even a close second to SIA in first placing but fifth behind Lufthansa, Air France and Etihad as well

In the economy class category, Japan Airlines is tops followed by SIA and Qatar in second and third placing respectively.

Besides SIA has the best premium economy in Asia, second only to Virgin Atlantic worldwide. But,of course, Qatar does not offer that class of travel.

Additionally SIA tops for cabin crew, and Qatar is farther down the list in 9th position.

But Qatar wins for business class, followed by ANA and SIA in second and third placing respectively. So it seems there is heavier weightage for this segment which has become probably the fiercest battleground for the airlines. First class included, it also suggests the halo effect of the premium product, but it is the business class that is the primary focus in today’s business.

It also attests to the impact of the recency factor. Qatar obviously impresses with its cubicle-like Qsuite that comes with its own door to provide maximum privacy. Quad configurations allow businessmen to engage in conference as if they were in a meeting room and families to share their own private space. And there is a double bed option.

Which brings up the importance of having to continually innovate and upgrade the product to stay ahead in the race.

The top ten listing: Consistency equals excellence

The ranking does not shift much from year to year. Besides Qatar and SIA, there are some familiar names: All Nippon Airways (3rd this year), Cathay Pacific (4th), Emirates (5th), EVA Air (6th) and Lufthansa (9th). So there is not much of a big deal as airlines switch places so long as they remain in the premier list.

Hainan Airlines (7th) is making good progress, moving up one notch every year since 2017. Qantas (8th) is less consistent, moving in and out of the top ten list, Thai Airways retained its 10th spot for a second year.

It is no surprise that the list continues to be dominated by Asian carriers which are generally reputed for service. You only need to look at the winners for best cabin crew: Besides SIA, the list is made up of Garuda Indonesia, ANA, Thai Airways, EVA Air, Cathay Pacific, Hainan Airlines, Japan Airlines and China Airlines. With the exception of Qatar, no other airline outside Asia is listed.

If you to look to find out how the United States carriers are performing, scroll down the extended list of the 100 best and you will see JetBlue Airways (40th), Delta Air Lines (41st), Southwest Airlines (47th), Alaska Airlines (54th), United Airlines (68th) and American Airlines (74th).

Home and regional rivalry

Rivalry between major home airlines or among competing regional carriers is often closely watched.

Air Canada, placed 31st ahead of rival WestJet at 55th can boast it is the best in North America. That’s how you can work the survey results to your advantage.

ANA (3rd) has consistently outdone arch rival JAL (11th). In fact, ANA has been the favoured airline in the past decade till now. It has Japan’s best airline staff and best cabin crew. Across Asia, it provides the best business class. Internationally, it provides the best airport services and business class onboard catering.

Asiana (28th) is favoured over Korean Air (35th ).

The big three Gulf carriers are ranked Qatar first, followed by Emirates (5th) and Etihad (29th).

Among the European carriers, Lufthansa (9th) leads the field, followed by Swiss International Air Lines (13th), Austrian Airlines (15th), KLM (18th), British Airways (19th), Virgin Atlantic (21st), Aeroflot (22nd), Air France (23rd), Iberia (26th) and Finnair (32nd).

What about low-cost carriers?

Worthy of note is how some budget carriers are ranked not far behind legacy airlines. AirAsia (20th) is best among cohorts. EasyJet (37th) and Norwegian Air Shuttle (39th) are not far behind the big guys in Europe. Among US carriers, Southwest Airlines (47th) is third after JetBlue (40th) and Delta (41st).

Also, pedigree parents do not necessarily produce top-ranked offshoots. Placed farther down the list are SIA’s subsidiary Scoot (64th) and the two Jetstar subsidiaries of Qantas – Jetstar Airways (53rd) and Jetstar Asia (81st). So too may be said of so-called regional arms. Cathay Pacific’s Cathay Dragon is ranked 33rd, but SIA’s SilkAir is way down at 62nd.

Pioneer of the modern budget model Ryanair is ranked 59th.

Down the slippery road of decline: Aisana Airlines and Etihad Airways

If it is difficult to stay at the top, it is easy to slip down the slippery road of decline. Asiana and Etihad are two examples.

Asiana was ranked world’s best airline in 2010 and became a familiar name in the top ten list up to 2014, after which its ranking kept falling: 11th (2015), 16th (2016), 20th (2017), 24th (2018) and 28th (2019). Its erstwhile glory has been whittled down to being just best cabin crew in South Korea.

Etihad did reasonably well for eight years until 2018 when it was ranked 15th, and a year later suffered a dramatic decline to the 29th spot. That, despite beating Qatar to be this year’s best first class in the Middle East.

As I stated at the onset that there are surveys and there are surveys. Some are not specifically targeted , whether its interest is business or leisure for example. There is always an element of subjectivity and bias in the composition and weightage, and this renders no one reading as being definitive. At best, we can read across several creditable surveys to know with some conviction how the airlines really measure against each other.

Read also:

https://www.todayonline.com/commentary/can-singapore-airlines-overtake-qatar-worlds-best-airline

Is the Boeing Max ready to fly?

Courtesy Boeing

Airlines looking forward to fly their fleet of Boeing B737 Max 8 aircraft have just got their planned schedules jiggered up by the Federal Aviation Administration (FAA)’s announcement that it may take up to a year before the jet is cleared again for commercial flights.

According to the BBC, FAA chief Daniel Elwell said: “If it takes a year to find everything we need to give us the confidence to lift the (grounding) order so be it.”

It may be read that underlying this is the FAA’s understanding that time is needed to regain the world’s trust – in both the aircraft and the FAA as regulator. While Boeing seems ready to sign off the improved jet, saying it has finished updating the pertinent flight-control software, FAA in an apparent redeeming move following censure of its lax oversight is assuming control as the final authority to certify the jet’s safety.

According to Bloomberg, Mr Elwell added at a meeting with representation from across the globe, “If there is a crisis in confidence, we hope this will help to show the world that the world still talks together about aviation safety issues.”

In Boeing’s favour, some airlines have voiced their support of the Max. Understandably so, particularly if the airline owns a sizeable fleet of the jet. American Airlines (AA) for one is confident of an “absolute fix” but CEO Doug Parker was also quick to add, “But…it’s not for us to decide whether or not the aircraft flies. It needs to be safe for everyone.” The airline, which has a fleet of 24 Max jets, has cancelled thousands of flights and has now cancelled Max schedules through mid-August.

Another airline which has pledged its commitment to Boeing is Singapore Airlines (SIA). The airline is pledging its commitment to purchase 39 Dreamliner jets and its re-commitment for a previous order of 30 planes. Although this is not related to the Max aircraft of which its subsidiary SilkAir has six of them, it gives Boeing a boost of confidence after reports of shoddy production and poor oversight at the Boeing plant in North Charleston surfaced, and following grounding of some Dreamliner jets because of problems with the Rolls Royce Trent engine fitted to the aircraft.

Read also:

https://www.todayonline.com/commentary/grounding-boeing-max-and-dreamliner-planes-how-can-singapores-airlines-reassure-customers

It’s good to have friends, indeed. But while it’s not yet known if airlines such as AA and SIA have sought or will seek compensation from Boeing, others which have made known their intention include Norwegian Air Shuttle, Ryanair and the big three Chinese carriers of Air China, China Eastern Airlines and China Southern Airlines. A strongly worded report from the Chinese Global Times newspaper said: “We must use punishment and tell the Americans their practice of using concealment and fraud to extract benefits from others, while benefiting themselves, is unfair.”

More Boeing woes: Singapore Airlines grounds B787 jets

Courtesy Singapore Airlines

Singapore Airlines (SIA) has grounded two of its eight Boeing 787-10 jets which are found to have premature blade deterioration. The aircraft with an average age of only 1.11 years are fitted with Rolls-Royce Trent 1000 engines.

In truth this is not a new issue. Other airlines such as British Airways, Virgin Atlantic and Norwegian Air Shuttle have also grounded their affected aircraft. As of late February, Rolls-Royce said 35 787s across the industry were grounded due to engine blades corroding or cracking prematurely. It aimed to reduce the number to 10 by the end of the year.

While grounding an aircraft can be costly, airlines are not taking chances. In the present cliamte following the fatal crashes of two B737 Max 8 jets operated by Lion Air and Ethiopian Airways, the mood must be one of caution. Being open as SIA did, helps to reassure customers of the diligence the airline gives to its maintenance program.

A for Boeing, although the issue relates to the Rolls-Royce engine, it couldn’t have come at a worse time.

CAAS’ quick suspension of Boeing 737 MAX 8 a right call, but could SilkAir have done better?

https://www.todayonline.com/commentary/quick-suspension-boeing-737-max-8-right-call-caas-could-silkair-have-done-better

Qantas considers “crazy” ideas for ultra-long flight

Courtesy Reuters

Qantas is taking the lead in raising the bar for the ultra-long flight. And it is understandable why. The Australian flag carrier will be launching the world’s longest flight from Sydney to London in 2022 – a journey of 20 hours and 20 minutes.

Qantas is already flying non-stop from Perth to London, but the flight (17 hours and 20 minutes) is shorter than Qatar Airways’ 18-hour flight from Doha to Auckland and Singapore Airlines (SIA)’s flight from Singapore to New York (closer to 19 hours).

However, not many people may think staying up in the air for that long a time is the best way to travel. So the task for Qantas is to shift that mindset. According to the airline, their Perth-London experience has shown that health and wellness are the main concerns of passengers, and these may be translated into “comfort, sleep, dining, entertainment, and state of mind”.

The package goes beyond providing more comfortable seating, noise-reduced headsets and food specially designed to help the body adjust to the journey.

The limited space of the aircraft’s pressurized cabins and its complete lack of view pose a big challenge. So pre-flight programs become an option.

Qantas has introduced a lounge at Perth International with ‘light therapy’ showers, hydration menus and yoga classes to reduce the effects of jetlag. But this facility is only open to customers travelling in business, gold, platinum and platinum one Frequent Flyers, Oneworld emerald and sapphire customers, and Qantas Club members and their guests.

What about the rest of the travelers who are travelling in economy? These are the passengers who probably need more convincing than premium passengers. Unless, as in the case of SIA’s Singapore to Newark flight which offers only business and premium class seats (there again, certain privileges may not apply to the lower class).

That said, what really matters is what happens on the flight. According to a Qantas study, suggestions include common spaces for stretching (now there’s the rule about not conglomerating), a cafe and stand-bar (which is not new even for the long-haul), exercise bikes and guided meditations.

Think cruise, as it were, although that’s not quite a fair comparison. But they all seem to be saying: If you can’t sleep through the flight or enjoy the view outside, and when you are tired after watching several movies or getbleary-eyed reading, you want to be doing something else or simply to get out of your seat.

Qantas said it is thinking outside the box and considering some “crazy” ideas. That will certainly change the flying experience, cost aside. It may mean the return of luxury air travel at least for the ultra-long haul.

But it is a strategic investment for the flying kangaroo “because of where Australia is situated on the globe,” said Phil Capps, head of customer experience. He added, “we’ve always had to push the boundaries of long-haul flying to ensure our passengers arrive at their destination ready for the next stage of their journey.”

While more airlines are battling it out in the long and ultra-long haul arena, the real competitor for Qantas may be SIA since there may still be many travelers who prefer to break their journey and because Singapore Changi Airport is the indisputable airport for transiting. The corollary is that SIA will be equally challenged to keep them coming through Changi.

Time to address rights of travellers affected by lengthy flight delays

https://www.todayonline.com/commentary/time-address-rights-air-travellers-affected-lengthy-delays?cid=emarsys-today_TODAY%27s%20evening%20briefing%20for%20Jan%207,%202019%20%28ACTIVE%29_newsletter_07012019_today