American Airlines Flubs Opportunity to Connect

I. FLIGHT CANCELATIONS CAUSE CUSTOMER PROBLEMS

Since the middle of March, 2008 American Airlines has canceled more than 3,300 flights because of mechanical concerns. The airline called for inspections of each of its planes to inspect “[p]otential wiring hazards in wheel wells that could cause fires or problems with landing gear.” The initial round of inspections was unscheduled and left more than 144,000 passengers without flights.

The in-house inspections appear to have been a reaction to FAA inspections conducted on Southwest Airlines planes. The FAA had been presented with documents indicating that around 100 Southwest aircraft had not been inspected as ordered by FAA regulations. During a congressional hearing occurring at that time, legislators suggested that the FAA had not been enforcing the federal inspection rules. In response, the FAA increased its surveillance, which caused American Airlines to evaluate its own aircraft.

Those stranded by the American Airlines cancelations had little recourse. The airline worked to accommodate its customers by helping them to find other flights, but the passenger load was just too great, and most customers were unable to find alternate transportation. They were left with no other option but to postpone or cancel the plans they had at their destinations. The initial inspections occurred at such short notice that many, if not most, of the passengers affected learned of the cancelations after arriving at the airport.

American Airlines CEO Gerard Appey apologized in prepared statement that was released to the media and posted on the company’s website. Appey’s statement acknowledged that it was the company’s actions, or lack thereof, that led to the unannounced cancelations, and it thanked American Airlines customers “for their patience under very difficult circumstances.” Airports that were affected by the cancelations were saddled with the burden of figuring out what to do with thousands of stranded passengers. Airport restaurants that usually closed in the early evening stayed open around the clock to accommodate American’s customers.

II. THE AIRLINE REACTS -- BARELY

The airline did not handle the situation with grace, and its reputation with its customers suffered. In fact, little was written in the media about the inconveniences caused by the cancelations at all. Appey’s apology was inadequate and not well communicated, and it appears that nothing was done to reimburse the affected customers for their troubles, at least nothing was publicized.

III. WHAT COULD HAVE BEEN DONE

Assuming that the unannounced-nature of the inspections was unavoidable, American Airlines could have done a few things to minimize the fallout. First, it could have provided no-charge transportation for those who needed to return home after learning of the cancelations. It also could have provided food and lodging vouchers, in addition to free transportation, to those stranded from out of town. And rather than having people lug their bags into the airport only to find out at the check-in counter or at the terminal that their flights were canceled, American Airlines employees could have lined the sidewalks to the entrances of the affected airports with networked hand-held devices to advise American customers that their flights had been canceled, thus saving them the inconvenience of attempting to check-in and check their baggage. These employees would also have vouchers in-hand to give and further instructions for the passengers. The scene would have likely still been chaotic, but less so.

After the initial wave of passengers was turned away, the airline should have contacted each one personally with a telephone call to 1) apologize for the situation and 2) offer free or cut-rate future fares. This telephone call would then be followed-up with a letter or email reinforcing and confirming what was said on the telephone call. Then, of course, following through with whatever was offered and accepted would need to be done.

This incident will affect American Airlines’ relationship with its customers in the short term. But the airline did a good job of communicating after-the-fact that it was responding to overbearing government regulation, and most customers will forgive a company for having to deal with bureaucratic rules -- most Americans have had dealings with rigid rules promulgated by the federal government. Besides, a certain degree of inconvenience is expected with air travel, and many customers will shrug this incident off as unfortunate but necessary. American Airlines, and all other airlines for that matter, would be well-advised to have a disaster plan in place to address these types of incidents, because there are sure to be more in the future.

IV. THE PROBLEMS ARE STILL BEING FELT

The fallout from the inspections is still being felt by American Airlines. In both April and May 2008 the airline finished last among domestic carriers in on-time arrivals. More than one third of its flights arrived at least 15 minutes late in April, and the airline blames its placement on the flights it had to cancel. Accordingly, American Airlines’ public relations department is sure to be working overtime for the foreseeable future.