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A PASSENGER'S RX FOR THE AIRLINES
By Joe Brancatelli
April 18, 2012 -- Air Travel stinks. That's a given. But the question is whether business travel can be improved.

I say it can. In a million important ways. Some of the obvious upgrades we'd like (more legroom at our coach seats, for instance) would disrupt the economics of a downtrodden, not particularly inventive industry. Others are, frankly, impossible in a world of $100-a-barrel oil.

But some improvements would make our lives easier, declutter the air-travel system, and help blacken the airlines' blood-red financial performance too. Here are six really simple ideas—call them The Seat 2B Airline Six Sigma if you must—that would work if only the airlines could see the forest as they fly over the trees.

Only Sell One-Way Fares for Assigned Seats
When airlines start reporting first-quarter earnings this week, the losses will be large and the excuses tired. That's because the legacy carriers don't want to admit that their own convoluted, unexplainable and largely indefensible fare structure annoys travelers and costs airlines way too much to manage and maintain. The only consistently profitable carriers, Southwest and JetBlue, keep it simple: All fares are sold one-way within a comparatively narrow range of prices.

So why do the other airlines lard their fare structures with bizarre rules and mind-boggling complexity? Because their goal is to charge each customer the highest amount possible and especially sock it to business travelers, who buy at the last minute and usually can't hit the restrictions tacked on to the low prices. But the structure doesn't work: It is costly to operate and requires expensive and extensive human interaction whenever flights are disrupted by weather or other crises. It also infuriates profitable business flyers like us and convinces every leisure traveler that they've paid too much even when they have actually paid too little.

A much smarter way to go would be to sell only one-way fares bundled with a seat assignment. Airline seats can and should be sold like theater tickets: You're offered a range of specific seats, each priced according to its relative desirability. The system is more transparent, less difficult for customers to understand, cheaper for airlines to operate, and, in the long run, would generate more revenue.

Make Nonrefundable Fares Truly Nonrefundable
Airlines make a big deal about selling "nonrefundable" fares. But they're not, of course. Airlines use the term "nonrefundable" when they really mean: "We'll change your flights, but you have to pay a fee to do it." Like most articles of faith in airline pricing departments, this stupid game doesn't work either. It's unclear whether the fee revenue actually offsets the hard-dollar cost of "restocking" an airline seat once deemed sold. And the process enrages customers because the fare structure is so messy that they often have to call the airline for help in negotiating the change.

A better solution: Make tickets genuinely nonrefundable. You bought it, you own it. And that's the key. Travelers would own the seats they've purchased and could do with them what they wish. Meanwhile, the airline's job is done and the revenue booked. If travelers can't use their seats, they could eat the cost, give or sell the seats to a friend, or peddle them on a secondary market. As sports teams have done, airlines could even create the secondary market themselves and claim a piece of the resale action.

Eliminate Code Shares
I once compared airline code shares to putting Froot Loops in a box of Cheerios. I went so far as to explain that cereal companies can't imagine doing what airlines routinely do: slap their computer codes on the flights of other carriers and claim them as their own.

If code shares were just a matter of phony advertising, we could keep chuckling. But these days, airlines slap their ID tags on and sell the flights of dozens of other carriers. The code-shares prove airlines have no sense of brand identity or desire to sell a definable product to their customers. They actually think you're too stupid to notice when you book, say, a Delta flight, but end up flying Air France or Czech Airlines or Alitalia or even Aeroflot.

Problems are legion with code shares: If the airlines involved lose your luggage or have a cancellation, each carrier blames the other and you’re left in limbo, bouncing back and forth between two unhelpful customer-service departments. It's even worse domestically when big airlines share their codes with small, regional carriers. Most customers have never even heard of the small airline they end up flying. And many of the smaller airlines have questionable safety procedures.

Airlines can get virtually all the of supposed business benefits of code sharing simply by using time-honored industry practice of "interlining" and harmonizing schedules. It simplifies a traveler's experience without making believe Froot Loops and Cheerios are the same product.

Bring Back Rule 240
Speaking about time-honored industry practices, the Transportation Department should require all airlines to adopt a modern-day version of Rule 240. That's the pre-deregulation requirement that carriers put you on the next available flight of any other airline if it has a cancellation or other schedule disruption.

Airlines these days write the contracts of carriage to ensure that they have virtually no responsibility if they screw up your flight. Given the recent cutbacks in schedules and high load factors on each flight, you could wait days for a "reaccommodation" when an airline cancels or delays a flight. It's not right and it's not fair.

If an airline can't accommodate you as originally ticketed and can't rebook you on a comparable service quickly, they should be required to immediately place you on the flight of another carrier.

No Fee for Carry-on Bags
Statistics show that the only U.S. airlines that make money consistently are the two carriers (Southwest and JetBlue) that permit you to check at least one piece of luggage free. But charging for luggage—then creating elite-status and credit-card "perks" that waive the fees—is another one of those idiotic articles of faith that the airline industry at large will carry to its financial grave. Let's just all agree to laugh at its funeral and continue flying the smart, surviving carriers. But charging for carry-on bags, a hideous practice created by the P.T. Barnum acolytes who run Spirit Airlines and recently adopted by a niche carrier called Allegiant, is beyond the ken. The federal government permits us to carry one bag and one personal item on a commercial aircraft. It's our legal right, and airlines shouldn't be allowed to charge us for exercising our rights.

Stop Faking Frequent-Flyer Programs
Frequent-flyer programs use "miles" as currency, which made sense when the plans were created in the early 1980s. In those not-so-halcyon days, a mile of travel and the revenue it generated were roughly equivalent across an airline's network. You could, generally speaking, gauge customer loyalty and financial value based on the number of miles they flew. But because today's fare system is so bizarre, there's no relationship between the number of miles you fly and your financial contribution to an airline.

It's long past time that airlines adopt a revenue-based model for their frequency plans. Business travelers generally contribute the most revenue to airlines, so the frequency programs should reflect that reality. Hotel programs already do—and it explains why frequent travelers now increasingly believe hotel plans are fairer and easier to understand than airline schemes.

The Fine Print…
One of the dreariest components of modern air travel is the checkpoint Kabuki practiced by the Transportation Security Administration. Even former TSA Administrator Kip Hawley admits as much in an essay published last weekend in the Wall Street Journal. The problem with Hawley's admission? He created most of the despicable practices the TSA now uses, and he knew even as he created them that they weren't effective. Hawley's arrogance and alibis remains the hallmark of the TSA under his successor, John Pistole.
ABOUT JOE BRANCATELLI Joe Brancatelli is a publication consultant, which means that he helps media companies start, fix and reposition newspapers, magazines and Web sites. He's also the former executive editor of Frequent Flyer and has been a consultant to or columnist for more business-travel and leisure-travel publishing operations than he can remember. He started his career as a business journalist and created JoeSentMe in the dark days after 9/11 while he was stranded in a hotel room in San Francisco. He lives on the Hudson River in the tourist town of Cold Spring.

THE FINE PRINT This column is Copyright © 2012 American City Business Journals. All rights reserved. Reprinted with permission. JoeSentMe.com is Copyright © 2012 by Joe Brancatelli. All rights reserved.