Mid Morning Concurrent Sessions: Consumer Perceptions in Aviation: Presentation: From Customer Service to Self Service; the Decline of Passenger Satisfaction

This study will explore the ramification of the airline industry’s failure in strategic management, as they move away from a customer service oriented approach to one dependent upon the self-service of the consumer. Up until 1978 the airlines were regulated by the federal government, meaning that fees and prices could only cover operating costs with small consistent profits being made by the airlines The Airline Deregulation Act was passed in 1978 as United States federal law intended to remove government control over the fares, routes, and new airline entry from commercial aviation. By deregulating the airlines, the airline companies would be left to their own management practices and could route their flights any way they deemed efficient; moreover, new airlines could now try to enter the market. Theoretically, if the airlines charged what the market could bear and bring down costs, then more passengers would fly, therefore maximizing the airlines profits. As operating costs rose coupled with the effects of 9/11, the airlines devised new ways to increase their profit margins. This approach was the levying of additional fees, and a dependence upon the customer assuming more of the travel responsibilities. The problem is that this has directly added to the dissatisfaction of the airline industry. Through the review of customer satisfaction surveys, and the interviewing of a sample of airline passengers, this research will show there is a direct correlation between the non-customer service based approach by management, and the poor opinion of today’s airline industry