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You are the CEO of _____ Airlines.

You are the CEO of _____ Airlines.

Old Dec 16, 2002, 9:07 am
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You are the CEO of _____ Airlines.

What would you do to improve the airline for the frequent traveler?

For a very long time, I have seen many posts on many threads discussing complaints and suggestions - many quite creative - concerning various aspects of how airlines are operated, including management of the airline's frequent flyer program. I figured this would be a great place to consolidate those ideas into one area. Given the extraordinary fluid dynamics that are fueling the sweeping changes throughout the travel industry, I am interested in what you would do to improve your respective favorite airline, as well as create what you think would be your ideal frequent flyer program. I would especially love to hear what unofficial airline representatives would do if they were promoted to CEO tomorrow.

I am a member of the AA, CO, DL and US frequent flyer programs. I used to be a member of UA, AW, TW, Midwest Express, Eastern and PanAm.

Here is your chance! You own the airline. What would you do?

[This message has been edited by Canarsie (edited 12-17-2002).]
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Old Dec 16, 2002, 10:21 am
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Are you writing a magazine/newspaper story?
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Old Dec 16, 2002, 10:38 am
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I'm reminded of a P.J. O'Rourke article in which he was discussing the War on Drugs with an inner-city doctor.

"What would you do if you were given the Drug Czar job?" I asked. "I mean, besides not take it?"

That pretty much sums up my answer to your question.

Mook
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Old Dec 16, 2002, 10:52 am
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What would I do to improve things for frequent flyers?

When the business is losing money, it's difficult to spend more. Motivating employees to be friendly and productive is extremely difficult.

There is a trend to make the ff program as bad as the others and to charge as many weird fees as the others.

Not to be entirely negative, how about
1. small mileage bonuses or extra upgrade coupons for those who are elite for multiple years in a row.
2. bonus miles (as few as 50) for not checking in luggage. Even the non-frequent flyer may want those miles and cut the amount of work the luggage handlers have to do.
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Old Dec 16, 2002, 10:57 am
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I would get someone like Joe Brancatelli on board and hand the job over to him.
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Old Dec 16, 2002, 11:28 am
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by hnechets:
I would get someone like Joe Brancatelli on board and hand the job over to him.</font>
Great - lets let a true nut case run the airlines - Oh, I guess that term is relative when talking about airlines, but he really does take the cake!
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Old Dec 16, 2002, 12:27 pm
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by pinniped:
Are you writing a magazine/newspaper story?</font>
No, I am simply a small business owner and a fellow veteran frequent flyer like everyone else here who does not like the drastic changes airlines are making towards us, their best customers.

The reason I started this is for some serious debate about what the ideal frequent flyer airline program would be. We could then take those ideas and apply them using real-world economics. I could not keep quiet any longer about the radical changes being made, so I felt that if the best of us could generate some innovative ideas and suggestions here together that provide for a win-win scenario for both the airlines and us frequent flyers, the airlines might actually listen. These ideas could also include improving other areas of the airlines' business that would assist in preserving or even improving our beloved frequent flyer programs.

One idea: If I were CEO, I would have a contest for all elite members to submit suggestions on how to improve profitability, and/or possibly how to improve the frequent flyer program. I would get my best customers involved, and just for participating, everyone would be rewarded with a nominal amount of miles. Big prize winners might win a year at a certain elite level, or unlimited first-class upgrades.

Speaking of unlimited first-class upgrades, I feel all elite levels should have unlimited first-class upgrades, with priority for the highest levels, of course. This concept seemed to work as I struggled my way up to the top of the elite ranks at CO. When I was at the lowest level, I had good chances of getting upgraded. I got upgraded almost all the time at the highest level.

Those are just two ideas of many that I have. Please keep in mind that any ideas I come up are merely ideas for others to improve.

I don't care how far out those ideas are. I learned that the best ideas are the ones where one comes up with the ultimate unrestricted fantastic idea, then backs up to become more realistic with the idea.

If we can have an area primarily for constructive suggestions and ideas instead of complaints, and we stick together as a large group, maybe the airlines will take us more seriously than their marketing departments.
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Old Dec 16, 2002, 1:25 pm
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Lets see,
Id create a seperate Elite lounge at major airports to encourage flying. Premium tags on all elite baggage when checked. Offer discounts on airline booze to elites. Thats really all I can think of.
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Old Dec 16, 2002, 1:27 pm
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I think there should be a separate forum for this sort of discussion. Maybe even a rotisserie league. Then the rest of us can focus on buying tickets and being passengers.

Mook, I like your profile. It's spunky.
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Old Dec 16, 2002, 1:41 pm
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Ok, this is only half joking.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Canarsie:
What would you do to improve the airline for the frequent traveler?</font>
Abolish the frequent flyer program and instead concentrate on providing the best possible product/service for your target market. Loyalty will come automatically if your product is significantly better than the competition.

As B Watson pointed out in a recent thread this model seems to work for brands like Four Seasons, Ritz-Carlton, etc.
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Old Dec 16, 2002, 2:03 pm
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Things I would do as CEO:

1. Listen to my employees.
2. Take care of my employees.
3. Listen to my customers.
4. Take care of my customers.
5. Simplify the process to make flying fun again and reduce costs.
6. Become personally involved.
7. Lead by example.

The job of management is to get work done by others. As Yogi Berra said, great managers are made by great players.

As CEO, I would spend some time at the airports, talking to employees and customers. I would find out their concerns and work to address them.

I would set up quality and communication "circles" where employees would be able to discuss company issues and propose solutions.

I would also set up consumer panels where, in particular, frequent flyers would be able to make suggestions and provide input. Further, I would institute a mediation and arbitration process where aggrieved consumers could seek a fair resolution of disputes. Much of this would be at the front line level where employees and supervisors would be empowered to resolve minor disputes much more than they are now. (While some customers are very unreasonable and/or unrealistic, most just want to be made whole. After Delta damaged a bag of mine and gave me a gazillion bogus reasons why they would not take care of it, I took it to a shoe repair shop where it cost me all of $1 to fix. It probably cost Delta more to argue!) It's a lot cheaper to take care of problems at the front line.

I would simplify the fare structure. It makes no sense to have fares on the books that make no logical sense. Most people just want to get where they want to be safely, on time and with reasonable comfort. I would shy away from loss leader fares and instead put in place a system where fares are inexpensive but not ridiculously so. A full plane of people paying $225 or so makes more sense that a schizophrenic fare system.

If there are upgrades, I would seek to make them available first to the best customers as a reward for their loyalty. I would, however, reserve a seat or two on each flight for a "mystery" upgrade similar to what many sports teams use.

I would encourage employees to, within reason, have fun on the job, bearing in mind the safety, efficiency AND hospitality are our primary goals.

I would destroy most of the form letters the so-called customer relations people use and instead have them respond with "real people" language. It's prefectly okay to say "we screwed up" instead of making excuses or engaging in double speak.

I would also fly my own airline and let people know when I am on board and who I am. Most of the time I would be in the cheap seats but occasionally not because I would want to hear what the platinum level folks think, too.

The biggest thing I would do, though, is throw out what isn't working about the present model and then ask my employees and customers what kind of model would work and then try to build it.

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Old Dec 16, 2002, 2:08 pm
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let me run them all. I'll talk sooooo much that the feds will simply bow down, give up, and just give me all the money I want to boast up the fledging carriers that be and I'll fly us all for free anywhere we all want to go!

Ha ha ha
(I can, you see, bust on myself)

Seriously though, maybe the CEOs need to be someone with a personality and who knows how to enjoy the flying experience like so many FT-ers and FFF-ers say they do.

:MM
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Old Dec 16, 2002, 2:17 pm
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Canarsie:
What would you do to improve the airline for the frequent traveler?
</font>
Here are some plusses and minuses to chew on, with absolutely no statistics or business model to back me up:

1. Increase seat pitch and air circulation.

2. Eliminate FC domestically in favor of roomier economy seats.

3. Calculate multi-leg itineraries as point-to-point, eliminating the motivation to "pad" itineraries to amass miles or segments.

4. Refuse to sell three-leg itineraries until all two-leg itineraries are nearly sold out. This prevents mileage and segment padding.

5. $5 for special meals, but free movie headsets. I hate airline movies, and I hate sticking airline headsets into my ears.

6. Calculate elite levels based on actual miles flown (subject to the above-mentioned limitations) with a premium for top-tier fares.

7. Priority luggage handling and boarding for elite members.

8. Miles expire two years after last activity.

9. Free booze coupons for elite levels only. Hey, the stuff dehydrates ya like a prune.

10. Platinum members get 100% mileage bonus; Gold gets 50%; silver gets 25%.

11. FF award seats non-changeable and non-refundable, unless a 50% mileage premium is paid (waived for elite levels). Reduced mileage requirements to Europe off-season.

12. Upgrade policy: Automatic for PM in advance; 72 hours for Gold; reduced mileage for silver on day of travel. K or better fare except on day of travel, then fill 'em up with standbys. No paper upgrade coupons.

13. In fact, no paper coupons of any kind.

14. Priority waitlisting for elites.

15. Intriguing idea: Mileage charge for FF tix would be PER LEG, so that multi-leg itineraries would cost more than the same destinations flown directly.

Those are afew ideas off the top of my head, without any deep thinking...
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Old Dec 16, 2002, 2:37 pm
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by RIP-PSA:

3. Calculate multi-leg itineraries as point-to-point, eliminating the motivation to "pad" itineraries to amass miles or segments.
INTERESTING IDEA! I WOULDN'T GET ANNOYED AT THE CHANGE.

5. $5 for special meals, ....
WHY NOT? THIS IS A SPECIAL SERVICE.

11. FF award seats non-changeable and non-refundable,
SEEMS TOO INFLEXIBLE AND PUNITIVE. WHY NOT ADD ELECTRIC SHOCK AND CANING TO PASSENGERS WHO WANT TO CHANGE THEIR RESERVATION?

...
</font>


[This message has been edited by Skylink USA (edited 12-16-2002).]
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Old Dec 16, 2002, 6:15 pm
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I smell a Delta employee. My humble apologies if your not, but this sound just like a Newbie Exec fresh out of an MBA program that the Company shelled out top dinero (No Robert)for and your objective is to "think outside the box" or "break the paradigm".

That being said, 1.) replace the fare structure with an understandable model, 2.) treat the customer like YOU would want to be treated, 3.) respect your employee's, 4.)reward your stockholders and do it in that order.

Again, my apologies if all you say is true but the professionalism of your writing, limited number of posts, hidden e-mail account all triggered the paranoia in me, no it didn't...

G
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