Agents See Client Trust Eroding in American Airlines

After a spate of operational woes and a flurry of media horror stories, on everything from loose seats to 30-hour flight delays, are travel agency clients worried about flying American Airlines?

Clients aren’t turning away from American in droves, travel agents told Travel Market Report. Nor are travel advisors routinely recommending that clients book away from American or rebook on other carriers.

But agents are hearing from concerned customers, and some said consumer unease could escalate into active distrust if American’s reputation does not turn around soon. Others noted that American has strong ties, especially with its corporate customers who tend to be quite loyal to the airline.

That loyalty has been tested during a string of challenges that included a cataclysmic drop in on-time performance, to as low as 48%; alleged labor actions by the carrier’s unions, and, this week, news of seats shaking loose on several flights, posing a safety hazard. (See sidebar.)

Rebooking some clients
“We have some customers that have asked for alternatives or who need to be booked off American because they have to be somewhere for a meeting, on the corporate side, or to catch a cruise,” said Jennifer Wilson-Buttigieg, co-president of Valerie Wilson Travel in New York.

But overall, “a very low portion of business has moved off American in the last two weeks, under 10%,” said Wilson-Buttigieg, who noted the loyalty of the carrier’s partners.

Wilson-Buttigieg commended American for its “excellent communications,” including daily updates that the agency posts online. “That gives us facts, and facts are key.”

Still, between the seat situation and what she called “bumps in the road” as the carrier goes through bankruptcy, “it is disruptive,” she commented. “There’s no way I would say it’s not an inconvenience to the advisor and the end user.”

What are my rights?
One agent who has fielded calls from concerned clients is Donna Johnson, owner of Red Bird Travel Plus, an Ensemble agency in the Dallas suburb of Cedar Hill.

Most calls to Johnson have been from corporate travel planners and travelers inquiring about their rights if their American flights are cancelled.

“If the airline is at fault for the cancellation, and they say you can go in two days, or tomorrow, a lot of times even seasoned travelers don’t realize that they can force the airline, by rule, to get them there within four hours on another carrier,” said Johnson.

Safety fears
One call was from Johnson’s own mother, who is scheduled to fly with Johnson on a nonstop American flight to Reno at the end of the month. After hearing alarming reports of loose seats, her mother said, “‘I don’t want to go on American.’”

Then she learned that the alternative to American would involve changing planes. Never mind, her mother said. She’d stick with American’s nonstop service.

Like Johnson’s mother, most clients aren’t interested in trading a nonstop flight for a connection. In Dallas-Fort Worth, where American dominates, that makes booking away from the carrier an impractical choice, she suggested.

What’s going on?
Ricci Zukerman, owner of Worldview Travel, a Virtuoso agency in Santa Ana, Calif., was also hearing from concerned customers. “Our clients are asking, ‘What the hell is going on?’” she said.

“One said he’d received a newsletter from American promoting the use of an iPad on the plane. His reaction was ‘Are you kidding me? Who wants to hear about an iPad when the seats are coming loose?’”

While clients are not booking away from American, they are “watching this closely,” she said. “American had the public trust, but this has eroded. People are waiting to see what’s next.”

AA relations decline
Equally serious in Zukerman’s view is a worsening relationship between agents and the airline. “We used to get great service and support from American, now we wonder what is going on.”

She faults decisions that have been made since the airline declared bankruptcy, particularly cuts and reassignments made to the airline’s sales staff.

“They took away our best reps and brought in people without experience and knowledge. We’ve lost 10 to 15 years worth of relationships.”

Fallout expected
Ralph Santisteban, owner of a Miami-based CruiseOne franchise, said on Tuesday that he had not yet received calls from concerned clients, but he fully expected them to start coming in.

“Consumers have American Airlines on the brain right now because of all the restructuring and bankruptcy, so anything that happens with American has a magnifying glass on it.”

Clients have expressed concerns about American’s bankruptcy status and how it might affect their flights, he said. “Since the bankruptcy, we sell American Airlines with a disclaimer letting clients know there is a possibility that something can happen to their flights.”

Broader view
Wilson-Buttigieg suggested that agents take a longer view of American. “Most people forget that they are the last legacy U.S. carrier to go through bankruptcy, and in a bankruptcy you shake everything upside down.”

For her part, she anticipates that American will emerge from bankruptcy intact.

In the meantime, Wilson-Buttigieg had advice both for the carrier and for frontline travel advisors.

“American has got to keep proactive communications coming to travel management companies and to the customers.

“The advisors have to do a phenomenal job of advising the customer on the options and giving them information. At the end of the day the customer is going to decide.”