As if the airline industry needed more fodder to tarnish its reputation, American Airlines had to cancel over 3300 flights last week for wiring inspections required by federal safety guidelines revealed in an audit.
News reports on the issue were dominated by interviews with disgruntled travelers who, in some cases, missed important meetings or didn’t get to their destination for days. I’m so glad that wasn’t me, but it very easily could have been me, or any one of us.
American’s woes continue. Just yesterday, American’s parent company, AMR Corporation, announced that it posted a $328 million first-quarter loss “as surging fuel prices sent the industry into a downturn.”
Probably the worst news for American is that even before all this happened, a consumer rated study noted that they were already one of the lowest rated airlines in terms of safety. At least that was the perception as it was a study given to consumers, but it can’t be all that wrong with their recent safety compliance problems.
And it gets worse, not just for American, but for the whole airline industry. The Transportation Department announced yesterday that beginning in May, airlines will have to pay some bumped passengers as much as $800, double the current top penalty. The higher penalty also applies to planes of as few as 30 seats, rather than 60 seats or more under the old rule, which exempted many regional jets.
As an airline passenger, I’m happy to know that they we finally have rights in this area. But, it also means that we’re going to have to help pay for that somehow whether it be increased airfares or other inconveniences.
With the announcement this week of Delta and Northwest combining forces, American will have to be even more creative as to how to remain competitive in a shrinking industry. A report this week also noted that this merger is likely to spur other carriers to merge to help with cost savings and global brand recognition required to survive amid soaring fuel prices and a weak U.S. economy.
This week’s reports are likely not the last in a string of bad news for the airlines. Fasten your seatbelts, fellow air travelers, we’re in for an interesting ride…
