"Report Calls for Airlines to Fulfill Promises"

Monday, February 12, 2001

Report Calls for Airlines to Fulfill Promises


WASHINGTON (Reuters) - U.S. airlines made uneven progress in their voluntary
effort to boost customer service, according to a government report on Monday
that recommended their promises for better service be made legally binding.

But Transportation Department Inspector General Kenneth Mead said the root
cause of consumer dissatisfaction was flight delays, which have soared to
record levels in the past year and are threatening to get worse in spring
and summer.

Although the industry's response to delays was not a formal part of his
investigation, Mead said action by the airlines to reduce delays and
cancellations was crucial because the industry is ``not working well.''

In his report on 12 areas of customer service, Mead found that 17 U.S.
airlines have made progress, but still give passengers incomplete
information about delays and cancellations. The report also said airlines
need to do a better job of handling oversold flights.

But the report also said airlines did well in addressing customer complaints
and are doing a better job of providing information about low fares.

The industry said the report was ``fair and objective'' and reflected
progress.

While airlines are paying closer attention to customer service than a year
ago when they began the voluntary initiative, Mead said, the aviation system
is struggling.

He said flight delays ``are the most deep-seated'' underlying cause of
consumer dissatisfaction with air travel. ``Action by the airlines to reduce
flight delays and cancellations is critical,'' he said.

Flight delays rose a record 20 percent in 2000, according to Federal
Aviation Administration (FAA) figures. Consumer complaints were up 14
percent.

LONG ROAD AHEAD

``The road ahead is long, and aggressive progress will be required by the
airlines, airports and the FAA if consumer confidence is to be restored,''
Mead said.

The industry reacted swiftly to Mead's findings.

``We believe the report accurately reports the solid progress we've made and
we view it as a blueprint,'' said Michael Wascom, a spokesman for the Air
Transport Association. ''I believe this provides a framework to move
forward.''

The ATA is the main industry lobby group and was instrumental in developing
the 12-point customer service improvement initiative as a model for
individual carriers, which came up with their own plans.

Congress asked the inspector general to monitor and report back on the
customer service plans, which were created in 1999 to fend off intervention
by lawmakers.

A central recommendation of the Mead report is for the airlines to modify
their contracts of carriage, which are the enforceable legal obligations to
passengers, to include the new customer service plans.

Only three airlines, Southwest, Alaska Airlines and United Airlines UAL.N),
incorporated the entire customer service plan into their contracts of
carriage, the report said. Other carriers have done so to some degree.

The recommendation for making the consumer plans legally binding will
accelerate efforts on Capitol Hill to pass a passenger bill of rights.

Mead specifically said provisions governing the lowest fare for which
passenger are eligible; the holding or canceling

of reservations; the accommodation of passengers delayed overnight, and
passenger needs on long delays while on a plane should be enforceable under
the contract of carriage or by regulation.

U.S. Sen. Ron Wyden, an Oregon Democrat and one of the most vocal critics of
airline customer service, announced his intention on Monday to file rights
legislation.

Mead will testify about his findings on Tuesday before the Senate Commerce
Committee.

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