Suggestions for Airlines - Essay Example

 Turbulence in the Sky: The Airline Industry in Need of a Survival Strategy, is a case study that points out seven major problems with the airline industry that may limit its ability to survive in the long run. There are several options available to the industry to help improve its longevity. Here five suggestions are posited in response to the case study. First of all, the airlines have no reason to keep multiple airports open in close proximity to one another. For example, there is no need to have three airports in and around New York City.

It is not cost effective. Therefore, the first suggestion is to operate one airport per thirty mile radius. Doing so will cut costs. Secondly, customers do not appreciate buying airline tickets at what they think is a fair price, only to find numerous surcharges added to the ticket. The price quote customers receive is misleading. It would be beneficial for airlines to sell tickets up front at the true price – the price of the ticket plus all the taxes. This idea is similar to the way gasoline is sold.

A price of $3.19 per gallon is the final price with all taxes included. Similarly, an airline ticket of $319 should be the final price with all taxes included. Someone should not have to buy a $200 airline ticket only to find out the true total is $319. Next, if airlines continue to struggle financially, they should consider making part of the company available to the public via stocks in order to earn some money back. For airlines that are already available in stocks, they should consider releasing more shares to the public.

The fourth thing airlines should do is provide incentives to current and potential future customers. The idea of frequent flyer miles does not seem to be working enough to sustain the airlines. Perhaps airlines could take a hint from retailers. They can offer coupons good “for a limited time only.” Or they could offer cash back good towards a future purchase. For example, for every $250 spent on an airline ticket, the customer receives a $25 credit toward the next ticket. By taking this action, airlines may be able to secure recurring customers.

The last thing the airlines could do to help their survival is offer more for the same amount of money. More and more often people complain of poor customer service at airports and on airlines. Politeness goes a long way. A lot of courtesy can help retain customers and lack of manners can turn them away. Efficiency needs to be improved as well. Also, many airlines do not offer their customers sufficient meals or snacks on a flight, and food and drinks can be costly. Since people are not allowed to carry their own snacks with them on the planes, the least airlines can do is offer a select number of food and beverages as part of the ticket price.

If airlines instituted these five suggestions into the industry, it could help to keep them in business. Customers would feel more comfortable knowing for what they are paying, and the airlines should be able to save money. If the airline industry wants to survive, it needs to make big changes like the ones mentioned here.