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Air mergers won't help passengers: survey
By Christopher Hinton, MarketWatch
NEW YORK (MarketWatch) -- Consolidation among the network air carriers is likely to depress customer satisfaction levels to new lows as the airlines continue to raise fares and find new ways to nickel and dime passengers, the American Customer Satisfaction Index said Tuesday.
In its latest quarterly survey, the index found customer satisfaction with airlines fell to its lowest point since 2001 after airlines raised ticket prices, overbooked flights, and charged extra fees for checking more than one bag and for "premium" seats.
Airlines have said they are struggling to lift their revenues to match the skyrocketing jet fuel prices that threaten to push them into bankruptcy. Further, domestic network carriers are exploring consolidation as a way to help them cut costs, raise ticket prices and compete more effectively against foreign carriers.
But the four airlines at the bottom of the ACSI list are also the ones in various stages of merger talks: United Airlines, U.S. Airways, Delta, and Northwest.
When it comes to mergers, combining two negatives doesn't make a positive," said Claes Fornell, the survey's founder. "Passenger satisfaction is dismal, and things probably won't get any better if airlines continue to charge more for less."
U.S. Airways' index score fell 12% in the first quarter to 54, while its potential merger partner, United Airlines, held steady at 56. Rival carrier Northwest lost 7% to score 57 and Delta's jumped 2% to 60 points.
The industry average is 62 points, the ACSI said.
Also improving was American Airlines, up 3% to 62 points, and Southwest adding 4% to 79 points
.Southwest "has led the industry in passenger satisfaction for the past 15 years, and is one of only three airlines to improve since last year," the index said. "Its strong ACSI results kept the airlines from setting a record low."
The total index, which also includes food, hotel and healthcare services, added a fraction in the latest quarter to 75.2 on ACSI's 100-point scale.
Christopher Hinton is a reporter for MarketWatch based in New York.
By Christopher Hinton, MarketWatch
NEW YORK (MarketWatch) -- Consolidation among the network air carriers is likely to depress customer satisfaction levels to new lows as the airlines continue to raise fares and find new ways to nickel and dime passengers, the American Customer Satisfaction Index said Tuesday.
In its latest quarterly survey, the index found customer satisfaction with airlines fell to its lowest point since 2001 after airlines raised ticket prices, overbooked flights, and charged extra fees for checking more than one bag and for "premium" seats.
Airlines have said they are struggling to lift their revenues to match the skyrocketing jet fuel prices that threaten to push them into bankruptcy. Further, domestic network carriers are exploring consolidation as a way to help them cut costs, raise ticket prices and compete more effectively against foreign carriers.
But the four airlines at the bottom of the ACSI list are also the ones in various stages of merger talks: United Airlines, U.S. Airways, Delta, and Northwest.
When it comes to mergers, combining two negatives doesn't make a positive," said Claes Fornell, the survey's founder. "Passenger satisfaction is dismal, and things probably won't get any better if airlines continue to charge more for less."
U.S. Airways' index score fell 12% in the first quarter to 54, while its potential merger partner, United Airlines, held steady at 56. Rival carrier Northwest lost 7% to score 57 and Delta's jumped 2% to 60 points.
The industry average is 62 points, the ACSI said.
Also improving was American Airlines, up 3% to 62 points, and Southwest adding 4% to 79 points
.Southwest "has led the industry in passenger satisfaction for the past 15 years, and is one of only three airlines to improve since last year," the index said. "Its strong ACSI results kept the airlines from setting a record low."
The total index, which also includes food, hotel and healthcare services, added a fraction in the latest quarter to 75.2 on ACSI's 100-point scale.
Christopher Hinton is a reporter for MarketWatch based in New York.
