AMERICAN AIRLINES Airbus A300 & Boeing 777 at JFK, New York, USA. Sept 2008.

AMERICAN AIRLINES Airbus A300 & Boeing 777 at JFK, New York, USA. Sept 2008.

At a time where airlines are cutting jobs, services, airplanes, while raising fees – it seems odd that American Airlines has decided to move forward with paying out $14million in bonuses — or does it?

There is no denying that moral at some airlines are reaching record low levels. About 72,000 American Airline employees might feel a little less down when they see their performance based bonuses (averaging $200).

According to American Airlines, the incentive program seems to be working – with customer service up 3% and on-time service up 23%.

I think it can be hard for airlines to realize what their greatest investment can be…not planes, new technologies, or routes, but investing into their employees. On a flight with all the “toys,” no fees, and on the newest plane can be great, but if the customer service received is horrid, it can leave a very lasting impression.

Source: Business Week Image: Tom Turner

EDITOR-IN-CHIEF & FOUNDER - SEATTLE, WA. David has written, consulted, and presented on multiple topics relating to airlines and travel since 2008. He has been quoted and written for a number of news organizations, including BBC, CNN, NBC News, Bloomberg, and others. He is passionate about sharing the complexities, the benefits, and the fun stuff of the airline business. Email me: [email protected]

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1 Comment

i dunno about this. i have worked in a number of different places that offer “incentives” like this. all it does is make people learn the loopholes to earn the reward. plus with the average of $200, probably the top execs are making millions and the people who earn it are getting a $25 gift card to red lobster.

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