Friday, July 27, 2007

The Airline Industry - Wharton Style

Did not mean for a series to develop but it has. First I pointed to the Economist talking about the ills of the US aviation industry (esp customer service) and then NPR. Now a good read from Wharton called "Feel Free to Move About the Airport: Turbulence Continues to Roil the Airline Industry".

The article continues the list of horror stories for delays and customer non-service but in Wharton style tries to find the reasons (beyond Airline stupidity). Reasons discussed include:
  • The hub and spoke system being at fault because it is not a scalable and small shocks at one airport effect everyone;
  • Over protective bankruptcy laws making airlines inefficient;
  • Simply the record demand levels;
  • Antiquated safety rules slowing down take off and landing (such a prohibition on being within 20 miles of a plane that took off before you);
  • The lack of an economic penalty for bad service and delays meaning then is no incentive to improve; and
  • Limited access for better run and more customer focused competitors.
Agree with all of these. Thanks to Madame BOOT for sending through the article.

1 comment:

Anonymous said...

BOOTy is subliminally telling you its time to go to italy ??