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Tue, Apr 07, 2009

AQR Report Says Airline Performance Is Improving

Falling Traffic Means Better Focus On Passenger Needs

After one of the worst years ever in terms of passenger complaints in 2007, the nation's airlines posted substantial gains in 2008 according to a report issued Monday by the Airline Quarterly Rating, or AQR.

Fox Business reports the AQR report showed a 3 percent improvement in on-time performance in 2008, compared with 2007 numbers. Complaints among the 17 airlines reporting dropped to 1.15 complaints per 100,000 travelers in 2008... an improvement from the 1.42 complaints per 100,000 fliers in 2007, and the airlines' best performance in five years.

AQR notes the improvements came as fewer passengers flew on commercial airlines, due to the slumping economy... a not-altogether-surprising outcome of having to tend to less passengers.

"We know the system performs better when it.s less stressed by high passenger volume," said Dean Headley, associate professor of marketing at the W. Frank Barton School of Business at Wichita State University. "The economy scared away both business and leisure travelers in 2008."

Overall, Hawaiian Airlines was rated the best airline based on AQR guidelines, which measure on-time performance, lost baggage, and flight delays and cancellations. Low-cost giant Southwest Airlines scored the best regarding passenger complaints, with only 0.25 complaints per 100,000 passengers. The worst performance came from US Airways, with 2.01 issues per 100,000 passengers... far above the industry average of 1.15 complaints per 100,000.

Despite what could be rightfully termed a dismal performance, however, US Airways also took the "most improved airline" award for 2008 in AQR rankings. United, a regular presence at the bottom of customer satisfaction lists, made the least gains.

The full report, which is compiled annually through a joint research project funded as part of faculty research activities at Saint Louis University and Wichita State University, is available at the FMI link below.

FMI: Read The Full Report (.pdf)

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