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International Airline Travel and Consumer Issues
Matthew James
Science, Technology, Environment and Resources Group
The Global Trip
Have you booked your seat for your next round-the-world sojourn? Are
you taking advantage of one of the many multiple airline linkups that
provide one ticketing process for all of the international sectors? Do
you expect to gain considerable frequent flyer points as a result of your
travel?
Well, think again if you expect to have a hassle-free trip round-the-world.
Even with a seat reservation and reconfirmation, do not expect a guaranteed
flight! Nor may you receive all the frequent flyer points that you expect.
Special menu requests do not always appear either. These realities of
modern travel confront the unsuspecting traveller.
Despite the glowing hype of travel brochures, it pays to read the small
print on the back page. However, even the contingencies and items listed
there do not always account for all possible events. In reality, there
are some major pitfalls facing Australian citizens when they journey around
the globe by airlines, as there is no government or industry limit on
overbooking.
Overbooking
Many of us would think that travel on airlines, after advance payment
and confirmation, would be simple. However, airlines do not guarantee
travel. A reservation is made when an airline records a request for a
seat in its computer system. Once a passenger obtains a validated ticket
that reflects reservations for a specific flight and date, the system
confirms a possible seat.
However, seats assigned in advance are not guaranteed and form no part
of the contract of carriage. To offset the lost revenue, most airlines
overbook flights based on an analysis of the flight's historical 'no show'
factor. Airlines recognise that overbooking of flights is not an ideal
solution to the 'no show' problem that occurs when passengers fail to
arrive for their flights. So even with a valid ticket and reservation,
passengers may not even get on the plane (Choice 1995, 32-33)!
When more passengers than expected show up, staff solicit volunteers
to give up their seats. If an insufficient number of passengers volunteer
to take later flights, staff may deny boarding to those passengers who
did not check in early. If airlines are unable to get passengers to their
destinations, within two hours of their scheduled arrival time, the travellers
may be eligible for denied boarding compensation. However, Australian
domestic airlines do not provide such compensation.
Typically, staff select volunteers on a first-come, first-served basis,
but before staff make the final decision, they must consider a number
of aspects including the availability of later flights. They must work
quickly to prevent a delayed departure and may inadvertently create duplicate
lists of volunteers. Airlines will determine the compensation for volunteers
be it monetary or travel credit. As an example, USAir, in partnership
with Qantas and British Airways, will pay compensation for involuntary
denied boarding to the amount of 200% of the sum of the values of the
passenger's remaining flight coupons, up to US$400 (USAir 1993). This
amount reduces if USAir arranges for comparable transport not arriving
later than two hours after the planned arrival, or free or upgraded transport.
Frequent Flying
Qantas, Ansett and Air New Zealand spend much effort in promoting the
continuity of their international airline frequent flyer reward programs.
However, consumers really have to make an effort to ensure that airlines
register the new points resulting from travel activities.
Passengers cannot always earn or use frequent flyer points on some partner
airlines, as restrictions apply. Even if they do not, it may be up to
the passenger to apply to the Australian airline in order to have accrued
points added to the tally. Australian international airlines do not automatically
add to passenger points for flights made on foreign airline partners.
How many customers realise this?
Reward flights are often not available during peak periods of travel
or to certain destinations. It can take frequent flyer members some perseverance
to have airlines register their points and provide free travel. Ticket
issuance itself may be a problem due to mail delays requiring fresh ticketing
at the airport. Special promotions, offering extra points during certain
periods, require diligence by consumers, as the points involved do not
necessarily appear on passenger point statements, unless consumers query
it.
Special Requests
Passenger requests for special meals, seats, assistance or other matters
do not always translate readily from one airline to the next. Round-the-world
travellers should be particularly aware of the need to reconfirm all such
details well in advance of flight departures. Even this does not always
work!
This raises matters of consumer rights on round-the-world tickets particularly.
If complaining to an airline results in no effect, then to whom can the
consumer turn while overseas? As pointed out earlier, there are few guarantees
involved in these airline code sharing deals.
Future developments may include joint round-the-world fares having extended
features and options. In all of this though, the needs of the traveller
should remain paramount. Currently, Australian customers purchasing round-the-world
tickets expect to receive service commensurate with that found on the
issuing airline.
Global Alliances
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| Qantas Airways, British Airways and prospective partner American
Airlines expect to form a core of a global World Alliance to collectively
advertise and promote their services. While each may retain its own
identity, they may use a common sub-brand for the alliance in a similar
way to the KLM Royal Dutch Airlines and Northwest Airlines alliance.
Such code sharing linkages also provide for significant operational
savings to transfers, ticketing, frequent flyer schemes and the like,
making them of appeal to airlines. Ansett has links with other airlines
including United Airlines. The latter now links to Lufthansa, SAS,
Thai Airways and Air Canada. Singapore Airlines now links with Delta
Airlines and Swissair. Deregulation has made the airline industry
more competitive, but these links keep control in few hands (BTCE
1996, 14-20).
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References
BTCE 1996, 'Code Sharing in International Aviation: A Discussion Paper',
Working Paper 21, February.
Choice 1995, 'Overbooking Ordeals', December, p.32-3.
USAir 1993, Terms of Transportation, March, (pamphlet).
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