(02-05-2019 01:37 AM)Antarius Wrote: Rice's attitude is akin to bean counters running an airline. My flight from LHR was delayed due to maintenance. 12 or so passengers were on a connecting flight onwards from DFW. But due to a focus on closing the door and hitting that perfect D0 departure, we got left behind by a matter of minutes. Resulting in the airline putting us all up at hotels, owing us compensation and taking 12 seats out of inventory, many up front, on subsequent flights.
They hit some arbitrary metric and lost money in the process. Similarly, Rice hit some rule out there, pissed someone off, gained nothing... but by god we felt big time doing so.
Sorry to be the old git in the corner with all the answers, but hold my beer…here goes…
So Heathrow was your departing airport and DFW was your gateway airport? You were connecting to another flight, but it’s not clear if it’s to a ‘hub’ or to a ‘spoke’. Big difference.
If to a ‘hub’ then a proportion of the passengers that did make that flight (x-12) would be put at risk of missing their connection. Probably “x” is a multiple of 12? A matter of minutes is a bit of an understatement (?) if any of the affected 12 had anything other than hand luggage. (On a flight from Heathrow that probability approaches zero unless they’re a courier or a drug mule.) Was the luggage checked in all the way to their destination? So you need to account for additional time for the luggage and it might be safe to assume that international arrival gates aren’t always proximal to internal departure gates. Also there’s the issue of take-off and landing slots. Are there potential additional fees/penalties to the airline? What about managing gate availability or the need to rearrange gates and luggage handling and catering and crew and staff for other subsequent flights?
To a ‘spoke’ then less of a problem, but still a problem for maintaining the aforementioned take-off slot at DFW and the arrival slot at Airport X and any potential fees/penalties (?) and any affected logistics.
Now let’s look at the costs to the airline. From the airline’s perspective everything is about availability and limiting out-of-pocket costs. Note that airlines live and die on cash flow.
The airline will put you up in an available hotel room. Don’t look at the rack rate on the back of that door, but because that’s not what they pay. They have an arrangement with several hotels proximal to the airport. Often the airlines will try to use airport hotels with free shuttles to avoid taxi fares. The last time I got bumped off a flight the hotel room rack rate said $180 (and that was when money was worth something) and the bill I saw going to the airlines said $20. The vouchers for dinner and breakfast are also costed in similar fashion and of course they don’t include alcohol.
The consequent flight (on their airline) is based on availability. Their out-of-pocket cost is zero. Be nice to the airline personnel and try for an upgrade. First class is normally wide open on internal morning flights. If they need a reason to upgrade you suggest ‘mishandled customer’. (It’s worked for me.)
The compensation they gave you is unknown to me. In the old days you would receive a ‘free’ roundtrip ticket to anywhere in the continental US that the airline flew. The last time I was bumped off a flight I received a travel voucher for $300 for that airline. Again their out-of-pocket cost is zero. (If they gave you cash then you’re luckier than I ever was.)
The total out-of-pocket cost to the airlines so far is less than $50 assuming no cash compensation. Given I flew on 57’s, 67’s, MD80’s, L1011’s, etc.; you probably need to triple that cost to $150.
So, the estimated actual cost for 12 passengers is 12 x $150 (?) or $1800. Assume I’m 200% out and it’s still ‘only’ $5,400.
Now what did the airlines avoid that I haven’t mentioned…
Luggage. If you’re separated from your luggage it is effectively ‘lost’. To or from Heathrow and it will take days to recover, if ever. Excluding the black hole of Heathrow if the airline can confirm it’s on the next flight they will try and avoid anything beyond a courier charge to return your luggage to you. That charge is ‘infinitely’ variable. If you land at DFW you might live in Hurst or Hillsborough so radically different costs on face, but if they have an arrangement it may be at a fixed charge. My guess it’s north of $50 and probably twice that. If they can’t avoid compensation then the airline is out-of-pocket hundreds of dollars (and the courier fee when your luggage arrives). I think the Montreal Convention states it’s a maximum of about $1600(?) per person for international flights. It’s at least twice that for domestic flights. BA lost my ex-wife’s luggage and she spent less than $200. Needless to say they happily reimbursed her. Anything remotely reasonable will be paid: suit; shirt; tie; shoes; socks; trolleys; and toiletries to name a few. For women and anyone so predisposed be sure to add cosmetics. My ex-wife only bought two tops, a handbag, and a pair of sandals. Yes the airlines probably have insurance, but they’re probably self-insured. You’re also not compelled to claim against your own (travel) insurance. Obviously don’t double dip as that’s fraud.
So the potential cost of 12 domestic passengers separated from their luggage is 12 x (~$3200 x ?% + ~$100). It’s impossible to determine the 'actual' cost, but the maximum would be approximately $39,600. Assume “x” = 0.333 and the total projected cost would be about $14,000.
As you can see the airline's main consideration is keeping the luggage with the passengers ($5,400 < $14,000). And although they might have lost money they did effectively mitigate their potential losses.
And yes I’m a degreed and qualified accountant, but was never a bean counter (aka auditor). (I’m also a former straßekrieger.)