"More Services Monitored as Airlines Struggle"

Tuesday, October 19, 2004

More Services Monitored as Airlines Struggle
By Keith L. Alexander
The Washington (DC) Post


With two major airlines -- United and US Airways -- in bankruptcy protection
and Delta Air Lines creeping ever closer, passengers are increasingly
worried about some fundamental issues of air travel such as aircraft safety,
customer service and transferring of tickets. 

Whenever an airline plunges into bankruptcy proceedings, or moves to the
verge, the Federal Aviation Administration automatically increases the level
of surveillance of the carrier's maintenance operations. 
 
FAA spokeswoman Alison Duquette said United, US Airways and Delta are on the
FAA's "heightened surveillance list," which means the airlines' ramp
operations, training, recordkeeping and maintenance facilities are inspected
more often than usual. Stepped-up inspections also occur when an airline
begins seeking pay cuts from its employees, Duquette says. All three
carriers have sought billions of dollars in pay and benefits cuts. 

Customer service typically takes a hit when airlines begin slashing workers'
wages. Morale gets bruised and passengers see the difference at the ticket
counter and on board their flights. United has asked for still more
concessions from workers in its bid to obtain financing to emerge from
Chapter 11 reorganization. The airline's employees gave up about $2.5
billion in pay and benefits when the airline filed for bankruptcy protection
nearly two years ago. Last week, the majority of US Airways' 28,000
employees were forced by a bankruptcy court to accept a 21 percent pay cut
through February. Employees there gave up about $1.2 billion during US
Airways' first Chapter 11 filing two years ago. 

"The quality of customer service has already started to go down -- not just
at US Airways. Airlines just don't want to pay for labor," said Pam Terry,
president of the Communications Workers of America Local 2000, which
represents US Airways' airport customer service agents and club workers. 

She said 10 of 170 US Airways agents at Reagan National Airport have decided
to retire by year-end as a result of the airline's current financial
troubles. To make up for a loss in manpower at the counters, airlines are
rolling out a growing number of electronic ticketing kiosks in airports and
sending more travelers to the Internet. 

Legislation was enacted following the Sept. 11, 2001, terrorist attacks that
requires airlines to honor tickets on a defunct carrier for a fee of no more
than $25 each way. The legislation was put forward in anticipation of
troubles in the airline industry following the attacks. It is set to expire
Nov. 19, and Senate Majority Leader Bill Frist (R-Tenn.) and Sen. Ron Wyden
(D-Ore.) have proposed extending it. Lawmakers are expected to vote on the
legislation when Congress reconvenes in mid-November. 

If the legislation is not extended, airlines will determine for themselves
whether to honor their competitors' tickets and how much of a fee to charge.


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