American Airlines and US Airways airline merger: New logo. Same poor service.

Tom Dougherty, CEO – Stealing Share

4 March 2013

This airline merger will only make things worse

Chances are, those who fly either US Airways or American Airlines do so because of a loyalty program. Not because of superior service.

US Airways and American fail to do an adequate job of getting passengers from point A to point B.

The most common metric to measure airline success is the on-time performance rate. Airlines have become so satisfied with mediocrity that they boast when their on-time percentage is above 85 percent.

“Unfortunately, as the number of airlines dwindles prices jump, service sags and brand becomes irrelevant.”

 

airline mergerWhat kind of success is that? What if your car only started 85 percent of the time? Or if your soda was carbonated only 85 percent of the time? Or if your cable only worked 85 percent of the time?

Chances are, you would switch cars, sodas and cable providers.

Powerful brands cause people to pay more and inconvenience themselves to use them, which is not true with airlines. Passengers choose airlines based on price, schedule and loyalty programs.

An airline merger is not done to provide a better service. It’s done to pick up additional airports and aircraft. Unfortunately, as the number of airlines dwindles prices jump, service sags and brand becomes irrelevant.

With this airline merger there will be just four major domestic carriers: United, Southwest, Delta, and the new American.

The problems that plagued American to the point of bankruptcy and the sloppy service from US Airways will remain. Who knows, conditions may worsen.

Is there room for an airline to develop a brand that attracts travelers beyond price, schedule and service?

Absolutely. With the consolidation of two inferior carriers, the opportunity is greater than ever.

See more posts in the following related categories: airline merger American Airlines US Air US Airways American merger

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