SF Gate: Annual airline quality report offers ratings that don't fly

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Sunday, May 5, 2002 (SF Chronicle)
Annual airline quality report offers ratings that don't fly
Ed Perkins


   With due press coverage, the professors at the University of Nebraska at
Omaha and Wichita State University have issued their annual Airline
Quality Ratings for 2001, and overall scores for the industry improved a
bit. Among individual airlines, the winner was Alaska, with now-defunct
TWA at the bottom of the list.
   The composite AQR scores measure how well airlines did - collectively and
individually - in avoiding problems. But I'd never base my choice on those
scores: They exaggerate small differences among problem areas, and they
omit several vital elements of the total quality picture.
   The two universities have been compiling their AQR scores for more than a
decade. The original scoring included some 20 separate factors, many of
which had nothing at all to do with the "quality" of an airline as
experienced by its customers. Now the index is based on only four critical
factors: On-time performance, denied boardings (bumpings), mishandled
baggage and numbers of complaints received by the Department of
Transportation's consumer office. Each received roughly equal weighting in
the composite score.
   In descending order, the ranking for 2001 was Alaska, US Airways,
Northwest,
   Southwest, Delta, American, America West, Continental, United, American
Eagle and TWA. Among the more important lines AQR did not score were
AirTran, American Trans Air, Frontier, newcomer Jet Blue, and perennial
"best airline" winner Midwest Express.
   Given that its four criteria are all important to travelers, why do I
disagree with AQR? Two reasons:
   First: Three of its four rating elements are based on the numbers of
failures rather than the numbers of satisfied travelers. Since the numbers
of failures are very small compared to numbers of travelers, scoring on
failures grossly inflates minor performance differences. Here's an
example: On average, the airlines bumped about eight out of every 100,000
boarding passengers, with a high of 18 for TWA and a low of about four for
America West and American. According to scoring by failure, then, TWA was
more than four times worse than America West or American. But if you look
at success rates, the differences were tiny: TWA did not bump 99.982
percent of its travelers, compared with 99. 996 percent on America West
and American. That difference is so small that it =1Fwouldn't even show up
as a blip on a typical chart. Similarly, scores based on complaints (an
average of two per 100,000 travelers) and mishandled bags (one out of 200)
inflate minor differences. Only the on-time arrival measures are based on
success rates.
   Second: AQR entirely omits what to me are significantly more important
"quality" factors. As you must surely be aware by now, I believe that
seating is by far the most important element of airline quality, and AQR
=1Fdoesn't include seating measures (although it could). Food service is
important to some travelers, and the number of available frequent flyer
seats is critical to many others. And to lots of consumers, easy
availability of low fares is surely the most important of all quality
issues.
   To me, three domestic airlines stand head and shoulders above the others:
   -- Midwest Express, for offering near-first-class seating and food servi=
ce
at coach prices.
   -- Among the big lines, American's extra room in coach puts it far ahead
of the pack.
   -- Southwest, for its widespread availability of low fares - at the last
minute as well as in advance.
   If Midwest Express, American and Southwest flew everywhere you wanted to
go,
   you'd have no need for any of the other lines. Unfortunately, the AQR
scores would never lead you to that conclusion.
   E-mail Ed Perkins at eperkins@mind.net=20
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Copyright 2002 SF Chronicle

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