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Delta Airlines recently proposed giving frequent flyers a controversial perk: the option of paying $5 extra to speak to a customer service agent in the United States, rather than be routed to a call center in India. Public disapproval led Delta to abandon the idea.

It's okay to have a faulty product, it's not okay to have a faulty customer service. We cannot control engineering issues or weather, but we can control how we serve our guests.

In leadership, you gotta love people first. Love the position second.

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Some airline gate agents are habitually canceling customer airline tickets for silly reasons.

The airport gate agent can cancel my airline ticket for a silly reason and I can call the police to have it investigated.

Bumping airplane passengers off flights for silly reasons is how some airlines boost their profits!

It is virtually impossible to get a refund from a budget airline!

It is cheaper for an airline to bump passengers off an oversold airplane than it is to sell the correct number of seats for it.

Budget airlines are the Greyhound busses of the skies.

I suspect the poor customer service at the budget airlines would be grounds for termination at the larger airlines.

Customer service tends to be bad on budget airlines.

It's okay to have a faulty product, we don't like it, but its okay. What's not okay is if the service is faulty, if our response to the customer is faulty. The reason for their patronage is determined by how we made them feel.

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Look at any profession where the stakes are high and you’ll see a well-thought-out plan being followed. Professionals never just wing it. Doctors follow a treatment plan. Airline pilots follow a flight plan. Soldiers follow a military operation plan. How would you feel about engaging the services of any of the above professions where the practitioner says to you “screw the plan, I’ll just wing it.” Yet this is exactly what most business owners do.

If we are not attracting, maintaining, or developing the new generation of workers we are also NOT attracting, not retaining and not growing the new generation of customers.

It’s tempting to think that when you call the bank or another financial service provider and you are put on hold for twenty-five minutes, it’s simply because it’s a peak time of day and many other account holders are calling at the same moment. Tempting, but wrong. In reality, the wait time likely has nothing to do with timing and everything to do with your CLV, or customer lifetime value. This is a calculation of how much your business is worth to whoever you are calling, and the higher the number, the better the service. At a bank or credit card company, it might be determined by your balance. Frequency of travel and spending levels help set your CLV at airlines and hotels. More and more, as soon as you call any consumer-facing company, according to Palmatier, the company’s first step is to identify your phone number and then determine your CLV. “If it’s high,” he explained, “they might take your call more quickly, or direct it to one of their best-performing or most highly trained representatives. We call this heterogeneity in customer service, and it’s driven by the profit motive.

Budget airlines often have serious customer service problems, overbooking of flights, rescheduling of passengers, lying about passenger refunds, delays and reliability issues.

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Everything we do is in service to people. When we lead, it is to serve our people so they can serve our customers.

Cheaper airline tickets from budget airlines have come at the expense of poor customer service.

Hello budget airlines, goodbye customer service.

It is a really nasty thing for an airline to strand a passenger thousands of miles away from their final destination.

The Go story provides a useful reminder that some of the most instructive analogs—First Direct, in Go’s case—don’t have to come from your own industry. And analogs from outside your industry are less likely to have been noticed and copied by your competitors. Everyone in the airline industry already knew about Southwest and Ryanair. But First Direct’s low-cost but friendly service model was something quite different, an inspiration for Barbara Cassani and her team and a key ingredient in Go’s ability to attract and retain its early customers.

If I do not have 100% confidence that an airline is going to fly me to my final destination, then I can no longer book with that airline.

Rules, no matter how enveloping, will never deliver an exceptional customer experience. Colleen Barrett, who in her forty-seven-year career at Southwest served as head of marketing, customer service, people, and operations, describes the airline’s approach to rules: “The rules are guidelines. I can’t sit in Dallas, Texas, and write a rule for every single scenario you’re going to run into. You’re out there. You’re dealing with the public. You can tell in any given situation when a rule should be bent or broken. You can tell because it’s simply the right thing to do in the situation you are facing.” 17 Backing up this freedom is a concerted effort to ensure every team member has the information needed to think and act like an owner. At Southwest, training programs cover industry economics, financial ratios, profitability drivers, and more. By investing in the judgment of its people, Southwest creates a business that is smarter, more innovative, and more profitable.

Common sense alone reveals the essential problem that economic theory ignores. Just imagine what would become of a firm that develops computer software or a new pharmaceutical if its product were priced at the cost of making another copy of its program! Bankruptcy would be certain. To prevent such bankruptcy, we grant developers of software or pharmaceuticals protection through copyrights or patents, which limit competition. Because of the longstanding use of these monopolistic arrangements, we readily accept that they are consistent with the principles of free competition. In fact, they are not. More and more, the existence of sunk costs makes industry resemble a software industry without the protection of copyrights or patents. For example, airline bankruptcies have become almost commonplace. Like the railroads of the nineteenth century or the software developer of the twentieth, an airline commits an enormous investment in an industry where the cost of servicing another customer is minimal. As competition drives prices down toward this level, the firm becomes unable to meet its financial commitments. Economic theory as it stands today is irrelevant to understanding this process. Economists may employ scientific tools, such as mathematics and statistics, but they apply them in a context that is questionable at best. Economics purports to be scientific because it grounds its ideology on a rigorous theoretical foundation, but this foundation rests on wildly unrealistic assumptions.

Our business should be beyond just innovating through products, it should be innovating in leadership too. Without our people, what we provide won't reach our customers effectively.

Eventually, the current airline industry strategy of shameless fee charging is going to collapse under its own weight. It’s the depressing result of a product mindset that prioritizes add-ons and revenue extraction and devalues customers. What could a flying experience look like in the future? Well, to start with, it might also include cars and trains. Maybe United sends you a cobranded Uber car with a monitor that includes all your hotel and flight details, a drop-down menu to preselect all your entertainment and dining options, and light rail information for your destination city. Maybe that car’s arrival time at your house is synchronized to your flight’s actual departure time. Maybe you can start binge-watching Narcos in the car and pick it up on the plane where you left off. Maybe when you arrive at the airport, a service like Clear can speed you through security lines with a swipe of your boarding pass and a thumb scan, because all your standard ID information has already been paired with your biometric details. Maybe all these services could be wrapped up in a flat annual frequent-flier membership plan.

Boeing at the time had a towering reputation for customer service, a share of the jetliner market that surpassed 70 percent, and a stock that had been the Dow’s best performing for a decade. “The Seattle Airplane Company was probably the most honest, reputable, best company you would ever work for,” said Gordon Bethune, who was a customer training executive and division chief at Boeing from 1988 to 1994 before leaving for Continental. Soon after he joined the airline, it placed

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