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American Airlines' Operations Crisis And What It Means For You

Sept. 20, 2012
4 min read
American Airlines' Operations Crisis And What It Means For You
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On Tuesday, the Wall Street Journal ran an article by Scott McCartney who writes “The Middle Seat” column with the first line: “If you’re making travel plans for this fall, avoid American Airlines. American has become too unreliable.” You don’t need a decoder ring to get his point!

Pinpointing The Problem

So what brought on the strong words? As many of you no doubt have seen, read or heard about this week already, American has been having huge problems with its unions and flight delays that brought its on-time availability down to a miserable 48% in recent days, and an even further disheartening 39% of flights arriving on time on Monday with 29% of the total flights coming in excessively late.

With the recent delays and cancellations, looks like we won't be seeing many of these planes taking off.

The article points out that many of American’s competitors didn’t seem to experience any similar issues, with United, Southwest and US Airways notching an 80% on-time record, and Delta and JetBlue with numbers around 90% according to FlightStats.

McCartney blames pilots and their union for the delays, claiming they have called in sick in large numbers, moved aircraft deliberately slowly and grounded flights for mechanical issues that wouldn’t normally cause delays. However, the union is strongly denying the charges, and one AA spokesperson told NPR’s Marketplace program that since the airline is under increased scrutiny in bankruptcy, pilots are being extra careful with operations and doing everything by the book so the airline comes off with as clean a record as possible. What’s the point, though, when over half your flights are coming in late and you can’t prove it’s for verifiable safety issues?

McCartney goes on to say that American flyers are in for more of the same and that American has announced it will be cutting back its fall schedule to increase flexibility with pilot schedules. However, there are probably more labor skirmishes in the future.

Regardless of who wins, though – the airline or the workers – it’s the passengers who get caught in the middle, often in messy, exhausting, expensive situations, and as McCartney points out, angry passengers can take a long time to give their business back to a company that has burned them.

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The Response

American issued a response to the recent “operational challenges” that included the following statement: “As a result of a number of factors, including an increase in maintenance reports filed by pilots, as well as levels of sick leave usage that have been running higher than historical norms for some time, we are reducing the rest of our September and October schedule by approximately 1 to 2 percent. This will ensure customers are provided reliable service while minimizing any impact to their travel plans. We recognize these adjustments may affect our people and our customers, and are taking several proactive steps to minimize any inconvenience.”

To wit, AA is proactively canceling flights to help avoid future travel disruptions, though I suspect passengers on those flights have found the changes plenty disruptive. They’ve also redoubled efforts to stay in communication with elite flyers, saying they will prioritize “Communicating with our most frequent customers to explain why we're experiencing schedule disruptions, and to reassure them of our eagerness to help if they are personally affected.”

It’s also taken other extraordinary steps like allowing passengers to standby for earlier flights at no additional charge, and the small but nice gesture of handing out snacks and refreshments to affected customers.

So what does all this mean? For me personally, I’m glad that I already requalified for Executive Platinum status for next year so I don’t have to try flying in this mess, because as much as I love to bank miles and points, my priority when traveling is to get to my destination on time and I wouldn’t want to take chances with all these cancellations and delays.

I understand the pilot union’s frustrations, and they have given up a lot to help the airline throughout the bankruptcy proceedings so far, but as Scott McCartney pointed out, I just don’t see how this tactic is going to fix anything. Rather, I only see it alienating even the airline’s most loyal flyers as well as causing the airline, which has already hemorrhaged $6 billion in the last four years, to lose even more money.

I don’t have any horror stories of my own since I haven’t flown American lately, but if you’ve been affected by the recent operations issues, I’d love to hear your stories.

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Apply for American Express® Gold Card
at American Express's secure site
Terms & restrictions apply. See rates & fees
Best for dining at restaurants
TPG Editor‘s Rating
4 / 5
Go to review

Rewards Rate

4XEarn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
4XEarn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
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2XEarn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
1XEarn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • Intro Offer

    As High As 100,000 points. Find Out Your Offer.
  • Annual Fee

    $325
  • Recommended Credit

    Excellent to Good

Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

Pros

  • 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.