Not world class, five-star is still a winner

Not world class but five-star as named by the Airline Passenger Experience Association (APEX). The distinction may not raise too many brows. Five stars are as far as you can go by definition in the universal ranking of service excellence.

Only 23 airlines made it to the APEX five-star list which of course includes the magnificent seven also named by the orgnisation. (See APEX names world cass airlines, none from North America, Dec 13, 2021). Asia tops the list with seven airlines, followed by Europe (six), Middle East (five), North America (four) and Latin America (one).

According to APEX, the result was based on passenger surveys collected over nearly one million flights operated by 600 carriers worldwide.

Courtesy Boeing

Asian carriers are the familiar brands of Cathay Pacific, China Airlines, EVA Air, Japan Airlines, Korean Air and Singapore Airlines with the notable absence of All Nippon Airways (ANA). The seventh carrier in the list is the comparatively new Xiamen Airlines which outperformed the larger three competitors o Air China, China Eastern Airlines and China Southern Airlines. Hainan Airlines is another notable omission.

Courtesy Getty Images

No surprise either of the winning Gulf carriers, namely Emirates, Etihad Airways and Qatar Airways. Joining them are El Al and Saudi Arabian Airlines (Saudia).

Courtesy Turkish Airlines

The European list of five-star winners is made up of Aeroflot, KLM Dutch Airlines, Lufthansa, Swiss International Air Lines, Turkish Airlines and Virgin Atlantic. One may note the absence of aAir France and British Airways.

Courtesy Getty Images

While none of the world class airlines in the Apex list came from North America, four of them made the five-star grade, namely Air Canada, American Airlines, Delta Air Lines and United Airlines.

Courtesy Boeing

Outside these regions, only Aeromexico from Latin America made the cut.

Once again, neither Qantas nor Air New Zealand in Sputhwest Pacific achieved any mention.

If there is one key to winning, it is one of consistency. According to APEX, the winning airlines require “the vast majority of their independently verified customer ratings to be five-star.” As an example, APEX says it “requires four times the number of five-star votes to counteract a single one-star vote. This provides tremendous power to customers when they are disappointed by their customer exoerience.”

At a time when many airlines are hard-hit by the coronavirus pandemic as they struggle to stay afloat, cutting back on frills, it is a challenge to maintain service standards and meet, let alone exceed, cusotmer expectations. Theefore, to be five-star recognized is no mean feat.

Slot rules rock EU-Asia cooperation

Only recently in June, the European Union (EU) concluded a yet-to-be-signed agreement with Southeast Asian nations signalling greater cooperation to formulate a common regional aviation policy. The ink is barely dry when new policies on slots threaten to sour that spirit of helping each other through the protracted COVID-19 pandemic.

The EU is telling airlines to use 50 per cent of their slots or lose them to other carriers from next month. That means some airlines may have to operate at levels which do not justify the operations, even flying empty in the extreme of cases.

It is not just Singapore Airlines that will feel the pressure but also others in Asia such as Cathay Pacific that will find themselves in a tight spot. Both these airlines without domestic markets to boot and relying on long-haul international routes are particularly vulnerable in light of present travel restrictions across the globe. At the height of the pandemic, they reported loads falling as high as 98 per cent.

Now Asian hub regulators such as Singapore and Hong Kong are threatening to retaliate with similar regulations although Singapore for one has said existing reciprocal arrangements ensure fair treatment. While that remains to be clarified, Cathay has earlier warned that the slow recovery would harm Hong Kong’s hub status and the airline risked losing slots at major airports. Other airlines such as Korean Air and Taiwan’s China Airlines have also expressed concern.

Courtesy PA

On the other side of the fence, Lufthansa said the rules would harm airlines while Air France and KLM said their decisions to fly were not dependent on airport slots.

It is a complex industry with layers upon layers of so-called agreements between multiple parties separately and collectively. That aside, the hard truth lies in how the pandemic is reshaping the business in the near term if not the long term as airlines struggle to recover and seize immediate opportunities. Regional carriers are demanding more slots, arguing it is in the interest of customers.

With domestic and regional carriers clamouring for more slots to capitalise on the preference for short-haul travel, regulators are looking at freeing up unused slots granted to airlines, largely international operators, who have put their operations on freeze. But those airlines know very well that once lost, they would be difficult to retrieve when the good times roll back. Slot has always been a problem at major airports where there is limited supply.

Economics can be a hard driver, and economic cooperation does not disguise self-interest. And the rules – even in the name of reciprocity – are not always equal. If indeed the EU and Asian regulators lock horns, which side will emerge less scathed?

For now the situation favours the short-haul. But the International Air Transport Association (IATA) thinks this to be a short-sighted view. Its Head of Worldwide Airport Slots Lara Maughan said: “When the demand is not there it is unreasonable to expect people to operate. It is a really short window they have once restrictions are removed to sort of recalibrate that whole operation back.”

There is still some wiggle room. The EU has previously set the level at 80 per cent slot utilisation and will consider “exceptions” for airlines which cannot reach 50 per cent while strict travel measures remain in place. It may all come down to a matter of definitions and, of course, goodwill and cooperation. But it will be hard to ignore the economics.

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

Size matters in the air

Courtesy Getty Images

Ryanair chief Michael O’Leary predicted that “within the next four to five years you are seeing the emergence of four or five large European airline groups.” He even named the airlines, Ryanair among them in a mix of full-service and low-cost operators: Lufthansa, IAG (International Airlines Group which owns British Airways, Iberia, Aer Lingus, Vueling and Level), Air France-KLM and, probably, Easyjet.

This sentiment has been opined before by others at a time when mergers, assimilations and acquisitions across the industry were trending as competition broke barriers of entry and intensified, and so-called safe niche markets became every player’s game.

Air France-KLM as the name suggests is a merger of the two European airlines in 2004. Rival British Airways (BA) viewed it as a step in the expected direction, predicting further consolidation within Europe. And in 2011 IAG came into being when BA and Iberia merged. BA chief executive Willie Walsh said at the time that the merger would enable the airline to compete effectively with low-cost carriers.

So there came a time when budget carriers began to pose a threat to full-service airlines, with Ryanair leading the pack. Many of the legacy airlines today have adopted the budget model of charging for ancillaries, and introducing a basic economy class to keep cost-conscious travellers from switching. However, many low-cost carriers have become victims of the competition – the reason why Mr O’Leary named only one other carrier, EasyJet, as a probable survivor.

EasyJet, founded in 1995 and headquartered in London Luton, UK, is Ryanair’s closest rival which has grown and spread its wings across Europe. It too has made a number of acquisitions which include Swiss TEA-Basle and Go.
Elsewhere around the world, the vibes are not unfamiliar, New in the circuit is Air Canada’s interest in Sunwing and Cathay Pacific’s interest in Air Hong Kong Express, And where acquisitions and mergers are not on the plate, airlines are working to form alliances that are more than mere code-sharing. Qantas did it in 2013 with its tie-up with Emirates, and now Malaysia Airlines and Japan Airlines have applied for waiver of government restrictions to form an alliance that will enable easier connections between the two carriers.

It looks like size matters in the air.

Hidden city fares – Is it fair game?

News update: courtesy BBC

Courtesy Getty Images

http://www.bbc.com/capital/story/20190226-the-travel-trick-that-airlines-hate

Hidden city fares: Do airlines have a case?

Courtesy Lufthansa

This is an interesting test case. Lufthansa is suing a man who bought a cheap fare to Oslo flying via Frankfurt, but intentionally missed the connecting flight at Frankfurt.

This “hidden city” scheme has been around for quite a while. What happens is that if you want to travel from A to B, it may be cheaper to book a ticket from A to C via B instead of directly from A to B. Such fares take into consideration the inconvenience of a stopover which results in a longer journey.

Or, in some cases, if you are travelling from B to C, it may cost less if you had bought a ticket from A to C via B, and then use only the second sector ticket. This is particularly true of tickets bought across the border advantaged by a favourable currency exchange rate. However, airlines may now be restricting certain fares by nationality and may require proof of origin of travel if in doubt.

Then, it is no secret that a return fare costs much less than a one-way fare, and some travellers have taken advantage of it.

And why not? One may argue that the consumer, having paid for the fare, has the right to decide if they want to use it or how to use it. But airlines consider intentionally skipping a leg an act of cheating or the failure to comply with the contractual obligations governing the use of the fare. It may all boil down to the fine print and the terms and conditions of carriage. Some airlines do remind their customers that there may be a no-show penalty, which makes it obligatory for travellers to at least inform the airlines if they were not flying as booked.

The reality is that suing a customer may be costly and tedious, so travellers may not be averse to taking the risk even if it means breaking the rule. The Lufthansa case is meant to be more than just seeking compensation for an alleged loss of revenue to the carrier; if the airline succeeded in convincing the court, it will send a signal to travellers that the risk is real.

Proving “intent” may be the crux of the issue. Still you wonder – if it’s caveat emptor for the buyer, equally it’s up to the seller to plug the loop holes, short of taking every suspected case to court.

Airbus A380: Big is not necessarily beautiful

Courtesy Airbus

BIG is not necessarily beautiful. Now that Qantas has cancelled its order for eight Airbus A380 superjumbo jets while Emirates, the largest operator of the double-decker jet, is also considering switching some orders to the smaller A350, the future of the world’s biggest aircraft hangs in the balance.

A Qantas spokesman said: “These aircraft have not been part of the airline’s fleet and network plans for some time.”

Clearly things are changing and the preference is trending towards a smaller but more fuel efficient aircraft.

The A380, which can carry as many 850 passengers, is supposed to cater to the rising demand for seats and at the same time relieve airport congestion. However, ten years after its inauguration, the industry is yet again shifting. It may seem the ideal solution moving more people at the same time. But as more airlines compete with non-stop flights, filling to capacity becomes increasingly challenging.

Qatar Airways Group CEO Akbar Al Baker said: “As an aircraft, it is very well suited for routes that require high capacity. We have successfully deployed it in markets where we see this large volume of passengers and operate to slot-restricted airports.” However, he was of the opinion that “this aircraft is very heavy (and) has very high fuel consumption.”

Besides, its size does not allow the flexibility to use it on other less populated routes which are dependent on seasonal demands.

Qatar has 10 A380s in its fleet. Other major operators include Singapore Airlines (24), Lufthansa (14), Qantas (12) and British Airways (12). But none comes near Emirates’ fleet of 109 with more than 50 on order.

2018 Skytrax airline awards: Largely the same winners

Top airlines remain largely the same ones as last year’s.

Yet again we note how the top ten airlines remained largely the same ones as last year’s. If you’re good, you’re good, so it seems, and consistency won the day.

Singapore Airlines (SIA) which was second last year switched places with last year’s winner Qatar Airways. All Nippon Airways (ANA) and Emirates Airlines held steady in 3rd and 4th position. Cathay Pacific moved down one rung to 6th,, exchanging places with EVA Air. Lufthansa held its 7th position. Garuda Indonesian followed Hainan Airlines up one notch to 8th and 9th position respectively. The only new entrant to the list was Thai Airways International, which actually only moved up one rung from 11th last year, edging out Etihad Airways as it fell from 8th to 15th position.

So much for the excitement as the winning airlines, going by the result of the survey, continued to please their customers who found no reason to think otherwise of them.

Unlike some high-brow surveys whose results lean heavily on the premium class, Skytrax does readings across all classes.

Best for First Class was SIA followed by Etihad and Air France. This used to be the realm of Asian and Middle-East carriers, and let it not be a surprise to see two European carriers in the ranking. Lufthansa took 4th place.

Best for Business Class was Qatar followed by SIA and ANA. You would imagine that if an airline is good in First, it should not be too far off in Business. However, Air France was not placed in the top ten list and Lufthansa ranked 8th.

Best for Premium Economy was Air New Zealand followed by Qantas and SIA. It looks like the Pacific airlines are pretty good with this product. Lufthansa and Air France ranked 4th and 5th.. There was an absence of Middle-east carriers because they didn’t believe in such a class. Qatar chief CEO Akbar Al Baker had said: “We won’t roll out premium economy… I don’t think there is room for premium economy in our region, and of course in Qatar Airways. We give you a premium economy seat with an economy class price.” Sounds familiar if you recall the early days when SIA too expressed the same skepticism. However, Emirates has said its new Airbus A380 expected to be delivered in 2020 will feature premium economy.

Courtesy Star Alliance

Best for Economy Class was Thai Airways followed by SIA and Qatar. This category was dominated by Asian carriers with the exception of Lufthansa in 9th position.

Only these six airlines were placed in all three categories of First, Business and Economy (excluding premium Economy since not all airlines offer this sub-class): ANA, Cathay, Emirates, Lufthansa, Qatar and SIA. You can then rest comforted that whatever class you travel with these airlines, you will be treated without discrimination.

But is the Skytrax survey a good guide in choosing which carrier to fly with? Generally people can agree on makes a good airline. What matters when you travel with an airline? For the long haul, seat comfort is an important feature. Inflight entertainment, if you look for some distraction and are not otherwise doing something else or trying to catch up on shuteye. A good meal, if you are not one who will not eat airline food no matter what (unfortunately this is not featured in the Skytrax survey). Cabin cleanliness, of course, and that includes the condition of the washrooms. How often do you see the crew give it a clean-up and spraying some kind of deodorant to try and make it as pleasant as it possibly can be? Above all, the service provided by the cabin crew, to be treated in a friendly manner and with respect. Not forgetting service on the ground in the event that you may need assistance, as when your bag is damaged or has not arrived with you.

Perhaps the ranking for some of these more specific services may be of some help:

Best Economy seat (First and Business should be way better anyway): 1st Japan Airlines, 2nd SIA and 3rd Thai Airways.

Best cabin crew: 1st Garuda, 2nd SIA and 3rd ANA.

Best inflight entertainment: 1st Emirates, 2nd SIA and 3rd Qatar.

Cleanest cabin: 1st ANA, 2nd EVA and 3rd Asiana Airlines.

Best airport service: 1st EVA, 2nd ANA and 3rd Cathay.

But, of course, you can’t expect a single airline to be best in all categories, but you get a pretty good idea of where they all stand, perhaps with exceptions.

Much Ado About China’s Geography

Since the United States (USA) have recognized the one-China policy (following a resolution of the United Nations in the early 1970s that legitimized the sole representation of the People’s Republic of China), it would appear groundless, even against logic, that it should protest the Chinese demand for US carriers to reflect Taiwan as a Chinese territory (this applies also to the autonomous regions of Hong Kong and Macau) on their websites.

While many airlines including British Airways, Air France, Lufthansa and Singapore Airlines have reflected the change in their booking itnerfaces to comply with the ruling, US carriers – United Airlines, American Airlines and Delta Air Lines – have yet to agree, apparently at the urging of the Trump administration. But China is not budging while extending the deadline from May 25 to July 25, at the same time rejecting the US request to discuss the issue.

It may be said that there’s a fine line between politics and business, that it is difficult to separate the two. Yet it seems only expected that any company that wishes to engage in business with a country should respect its sovereignty. A way out – even if it means turning a blind eye – is to recognize the independence of business operations, that the decision of the airlines concerned is purely commercial.

So it is with Qantas, which has decided to comply with Beijing’s request after the initial resistance. As with the USA, the Australian government, while embracing the one-China policy, was critical of the Chinese ruling, but conceded that how Qantas structured its website was a matter for the company. Australian Foreign Minister Julie Bishop said: “Private companies should be free to conduct their usual business operations free from political pressure of governments.”

So, will US carriers comply or be prepared to stop flying to China?

Why would IAG be interested in acquiring Norwegian Air Shuttle?

Courtesy Norwegian Air Shuttle

The International Airlines Group (IAG)’s interest in acquiring a stake in Norwegian Air Shuttle reflects the rising threat of the budget long-haul. Norwegian is among the few budget carriers that have broken the barriers to take budget operations beyond the limits of the 4-hour convention.

The competition is felt especially on the trans-Atlantic routes, where Norwegian and WOW air have made waves and which in turn have spawned budget offshoots by European legacy airlines, among them Lufthansa’s Eurowings, Air France’s Joon and British Airways (BA)’s Level as well as caused some carriers on both sides of the pond to introduce basic economy fare on their flights.

In fact, IAG which owns BA, Iberia and Aer Lingus, already has a Spanish budget arm known as Vueling. Yet why would it be interested in acquiring Norwegian?

Let’s face it: A legacy airline’s budget offshoot is understandably never quite like an independent budget operator. Otherwise the like of Level should have no fear of the competition posed by the like of Norwegian. Unfortunately the influence of the parent airline, however unintended, may be hard to disguise, and this could be the hitch.

Apparently IAG had already acquired a minority 4.6% stake in Norwegian. And if IAG seeks to increase its interest in the budget long-haul carrier, it may be seen as an attempt to “normalize” the playing field by the rules of the big guys. It would be a dent in the competition, if not eliminating a threat, at least limiting its influence.