Our company has been the subject of lawsuits and bad press due to various conflicts with passengers forcing them to disembark in order to make room for other passengers, due to overbooking. This memo proposes that we find a better alternative than physically forcing passengers off the flights, by enforcing our Rule 25 Denied Boarding Compensation. Analyzing it more carefully and potentially creating new policies regarding to overbooked flights, bumping passengers and improve our customer service. Background United Airlines’ has been through bad press due to overbooked flights and how the situations have been handled. Everything escalated quickly when it could have been handled in a professional manner without any physical abuse. We have been under siege due to …show more content…
United Airlines to request passengers who are willing to relinquish their confirmed reserved space in exchange for compensation in an amount to what the passenger paid for their flight and a one night stay at a formal hotel due to the circumstances. 2. United Airlines to not remove passengers who are on board and in their seat cannot be removed from a flight, unless there a safety or security issue present. 3. United Airlines can reduce the amount of overbooking to prevent anymore incidents. 4. United Airlines to provide training for gate agents on how to handle the most complex situations with different passengers. Benefits of the Proposal Adoption of this proposal will lead to several benefits: Faster resolution for any overbooking problems that might be faced, staff will be aware on how to better handle any upcoming situations with the passengers Improvement of our sales, costs, income and shareholder value as lawsuits diminish and our public image improves A more innovative
We have all heard the phrase, time is money, and for the airline industry this is literally true. Herb Kelleher knew that corporate management needed to be as unobtrusive as possible to allow for the quick turning of planes at the gate. He also realized that an open climate of communication, and decentralized day to day decision making, would motivate employees towards a shared goal of accomplishing this task. Employees viewed themselves as part of the team and by working together they would ultimately produce greater customer satisfaction and loyalty. At Southwest, employees experienced a high degree of work motivation, satisfaction, and performance as defined in McGregor’s theory Y. Employees at SWA were able to perform a variety of skills, and had a degree of au...
Better customer service by employing personable flight attendants in designer clothing. Song wanted to present an image of a high end airline so that the customers are not compromised on service while paying lower fares.
They have been known for exceptional customer service, as noted in their mission statement, however in 2014 one headline read, “After decades of prompt departures and arrivals, its punctuality has been abysmal since August” (Southwest Airlines). This unpleasant and unexpected turn came when Southwest attempted to make a change in the time allotted for turnarounds at the airport. Perhaps they became a little too greedy with everything that was going right for them. Their plan was to crunch time and make money by having more flights in less time. Unfortunately, their plan did not work exactly how they had hoped; one delay caused a domino effect and less than 60 percent of their flights were arriving or departing on time (Southwest Airlines). This is a challenge Southwest is having to overcome still to this day. They are in the process of allotting more time for turnarounds, but in the meantime they will be losing money. This is a sacrifice they are having to make in order to gain back customer satisfaction. One reporter noted, “The poor operational performance is a shocking turn for the Dallas-based airline that typically sits atop customer satisfaction ratings, with such consumer-friendly policies as free checked bags and no fees to change a flight” (Southwest Airlines). Southwest Airlines’ reputation of fantastic customer service has been prevalent for decades. This slip up in an
The code of conduct for United Airlines starts out with a brief purpose that is not unlike many other large companies. The document is clear that the purpose is to help everyone covered by the document
It’s the day before Valentine’s Day, you are eagerly waiting to get home to your significant other so you can celebrate the day of love, and you load your flight and hit the runway to take off. However, you sit on the runway for six hours waiting only to find out that you cannot leave. This was the tragic realization for many passengers who choose to fly with JetBlue on February 13, 2008 (Hanna). On that day, only 17 of the 156 flights scheduled left the airport (Hanna). More and more flights were canceled over the course of a week, leading to 1,096 flights in all and more than 130,000 angry customers (Smith). Finally, on February 20th flights resumed as usual but as you can imagine there were a lot of unhappy customers to deal with (Hanna).
If the short haul passenger was the backbone of Southwest Airlines success, then their 737s were the lifelines that supported it. By choosing the 737 as the airplane for all of Southwest's flights, the company saved time and resources in training its employees. The crew could be easily substituted for one another due to the extensive training on the 737. Low costs and, therefore, low fares are an enormous competitive advantage, when combined with their high-quality and loyal workforce. A very unique culture was found at Southwest Airlines among all of its employees.
There are systems which run workshops for staff at Qantas, so that these staff can receive a better understanding of what is expected of them and so they improve (Qantas, 2017).
Even though Southwest offers no-frills, there is still a high degree of customer satisfaction that continuously builds customer loyalty for the company. As mentioned, Southwest offers low prices on their airplane tickets. Also, Southwest is renowned in the airline industry for its short turnaround time on arrivals and departures. And since people's biggest concern nowadays is money and time, having low price airline tickets to cater their traveling needs in a shorter period of time will surely satisfy them. Moreover, aside from the low prices offered, what attracts to customers is Southwest’s way in dealing with them. The employees of the airline treat their customers well and really listen to their needs.
1- Issues The main issue of this case is the lack of profits of the airline industry, an industry that should be more than profitable due to the large amount of customers, the necessity of using airlines’ services and the high prices charged by most of these airlines. What we are going to deal with is, why is this happening? And how is American airlines dealing with this problem?. To be able to discuss how American airlines wants to regain profitability, we must identify and analyse different issues such as, the company’s background, the airline industry as a whole, the demand for air travel, the marketing strategies, the distribution systems, pricing policies etc.
Southwest's philosophy of "Service for Smiles and Profits" encourages employees to treat customer service as the most important aspect of their job. It appears that when employees strive for this high level of service, the rest takes care of itself and success is inevitable (Amanor-Boadu, 2007). Southwest Airline's management structure is designed to carefully direct the activities of employees while still maintaining the spirit of "fun" that is the cornerstone of the airlines' customer service success (Lancaster, 1999). The fundamental concept of management at Southwest is the notion of a "loose-tight" design. Within the context of tight rules of conduct, employees are encouraged to take a wide degree of leeway. For example, the company encourages employees to make their own customer service decisions. Employees are encouraged to try new things, knowing that they will not be punished for innovation as long as they do not violate safety standards, endanger crew or passengers, or keep a plane from taking off or landing on time; this allowed not only to increase the speed of service but it allowed to increase the quality of it too.
United's average passenger fare currently is 5% 10% higher than Southwest and the recent $10 increase may price them out of the market.
The promotion of employees from within is a fact and testament of their successful development and training program. Southwest Airlines has a program designed to strategically developed managers in an intensive Manager-in-Training program that prepares them for the next level. The university is the umbrella for training and development for Southwest since 9/11 which has focused on enhancing its curriculum to help employees achieve their goals. Southwest Airlines provides a Career Development Group that helps employees focus on personal and career growth. This is accomplished by working on a component that will align the employee’s personal development needs and strengths so they can grow more. It also encompasses a skills assessment that’s structured toward helping employees align their degree to a specific job within the company. As stated before, Southwest’s purpose is designed to encourage employee fulfillment and by their Career Development services help them become more fulfilled in their jobs. According to their philosophy, Southwest Airlines hires for attitude and trains for skills. This is why they have become a company with high retention rates. Southwest Airlines is voted “the best place to work” for a simple reason. The company invests in their employees and are committed to their values and
With no solid sources, this article remains not credible because it is not able to be trusted. One quote that demonstrates the article being biased is, ”Can the airlines really be this stupid?” (Moore, Stephen; United Airlines Overbooking Fiasco Should Have Never
Wilson, T. B. (1999). Rewards that drive high performance. Retrieved online February 18, 2007, from: http://www.wilsongroup.com/ecr/case/SouthwestAirlines.pdf.
United Airlines is one of the largest airlines in the United States and worldwide. Also, it is ranked as the oldest commercial airline that was founded by Walter Varney. United Airlines started as an Air Mail Service and then extended its services to be an Air Carrier. In 1927, William Boeing started his own airline, Boeing Air Transport, and started buying any other air mail companies, which included the Varney’s Air Mail Company. After a while, Boeing started manufacturing aircraft and parts, which allowed him to extend his company to a bigger organization. Also, within Boeing’s company, he bought several airports to expand his organization. In 1929, Boeing’s company has changed its name to be United Aircraft and Transport Corp. (UATC).