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What Should US Air Offer Crash Victims?

January 30th, 2009 @ 1:36 pm

18 Comments

Categories: Best Practices, Compensation, Executive Ethics, Executive Focus, Finance, Management, Opinion, Regulation, Strategy

Tags: Passenger, CEO, Public Relations, Team Management, Product Marketing, Customer Relationship Management (CRM), Marketing, Corporate Communications, Management, Enterprise Software

You’re CEO of US Air. One of your planes has an unfortunate altercation with a flock of Canadian geese (which are huge, by the way), both engines conk out, but the pilot and crew pull off a miraculous Hudson River landing and everybody survives. What do you offer crash victims?

And yes, it’s definitely a CEO decision, although I’m sure customer service and legal departments weigh in. 
According to the Wall Street Journal, sighting customer letters from US Air CEO Doug Parker and another executive, the airline has offered or provided victims of flight 1549 the following:

  • A $5000 check for luggage, since bags won’t be returned for a number of weeks, not to mention water damage (I think that’s per passenger, not per bag)
  • Reimbursement for ticket costs for flight 1549
  • Chairman’s Preferred status, their top frequent flier level, through March 2010
  • Individual support via their Customer Care Team, which I’m guessing includes reimbursement for reasonable expenses incurred as a direct result of the crash
  • Of course, an apology

According to a report in The New York Times:

Barry Leonard, a passenger who suffered a cracked sternum and bruising during the splash landing, received his checks on Monday morning at his home in Charlotte, N.C. — the original destination of Flight 1549.

Mr. Leonard, a frequent flier on the airline, said that he was grateful for the gesture and that US Airways had “bent over backwards” since Thursday, when shortly after takeoff from LaGuardia Airport, the plane, an Airbus A320, apparently struck a flock of birds and was forced to land on the water.

Valerie Wunder, an airline spokeswoman, said the $5,000 checks were not intended to “shut down” any other claims, like lawsuits, that passengers might file.

Another victim wasn’t quite so enamored with the airline’s gesture, this from the Wall Street Journal quoting a piece in the NY Post:

“You’re going to crash me into the water, and you’re going to tell me all I get is an upgrade?” asked Antonio Sales, 20, who was traveling with the University of South Carolina’s track team. “That’s more of an ‘OK, you’re not dead, I’ll give you something to hold on to.’ It’s not enough at all.”

As a multimillion-mile frequent flyer, I’d be ecstatic just to be alive and able to talk to a reporter. I’d say US Air has handled this crisis extraordinarily well, starting with having a pilot capable of landing an Airbus A320 on water with no engine power. But that’s just me.

If the obvious goals are doing the right thing and minimal bad PR, what would you do in CEO Doug Parker’s shoes, or how would you feel if you were a passenger?

 
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  •  
    1

    seansilverthorne@...

    01/31/09 | Report as spam

    RE: What Should US Air Offer Crash Victims?

    Um, why would the airline offer passengers an apology? Apology for what? Having a crew on board that saved their lives in an emergency water landing?

    If USA Air was somehow at fault, that would be another story. I think Mr. Parker was more than generous, and Mr. Sales, at age 20, has some growing up to do.

    Great post!

  •  
    2

    mrfreedman

    02/01/09 | Report as spam

    RE: What Should US Air Offer Crash Victims?

    The airline did a great job. It is the GREEDY people that have the problem.. I think if they offered $10,000 for the luggage, it would have smoothed things over better...

  •  
    3

    sir_sloppy

    02/02/09 | Report as spam

    RE: What Should US Air Offer Crash Victims?

    Ask them what they think would be appropriate, barring any fat payout of money. The pilots and crew of the aircraft performed in a professional way and the passengers themselves behaved extremely well, so it's not like anyone owes anyone very much of anything except a token thank you from both sides.

    USAir could grant them employee travel status for a certain period of time, where there is perceived value at little cost to either party. In this time of layoffs and uncertainy, the airline could offer employment to any of the passengers who thought they would take the company up on the offer, obviously matching job needs to job skills. And finally, just send the passengers a christmas card and a pair of tickets to next year's SuperBowl.

  •  
    4

    tprevot

    02/02/09 | Report as spam

    RE: What Should US Air Offer Crash Victims?

    They had thier lives saved over an unforeseeable accident. It is disappointing to see that anything other than what they have been "given" has been suggested. Welcome to the world of the entitlement mentality! Great job US Air.

  •  
    5

    heatherbow

    02/02/09 | Report as spam

    RE: What Should US Air Offer Crash Victims?

    I think all the passengers should give God thanks for sparing their lives. This is a miracle, and should give each passenger a time to reflect on their lives. The offer by the CEO should be welcomed.

  •  
    6

    Mrdoug

    02/02/09 | Report as spam

    RE: What Should US Air Offer Crash Victims?

    Each passenger should be extremely grateful they are alive. I would be. If the airline had been negligent, that's one thing. I of doubt they could control the geese though. If anyone lost anything of high value, above the $5,000, make a claim and US Air could cover that. All in all, US Air I think is handling this entire issue very well.

  •  
    7

    dkbradley

    02/02/09 | Report as spam

    RE: What Should US Air Offer Crash Victims?

    I don't think you can put a price on one's life, and I commend US Airways, an airline who is struggling to change its image, on the offers provided to the survivors who happen to be ALL of those passengers. They have another chance at life thanks to Sully who is a true hero. Mr. Sales, apparently this wasn't enough of a life-altering experience for you. Do grow up and learn that no one owes you anything.

  •  
    8

    glenruiz

    02/02/09 | Report as spam

    RE: What Should US Air Offer Crash Victims?

    Is this is what this country has come to, greed making people see an opportunity to make the almight buck! Same as the CEO'S on Wall Street! No wonder we have the problems we do. Why not just be thankful for walking away with your life intact.

  •  
    9

    Steve Tobak

    02/02/09 | Report as spam

    RE: What Should US Air Offer Crash Victims?

    I'm afraid we'll never see how greedy it gets since the inevitable lawsuits will likely go unreported.

    Steve Tobak

  •  
    10

    johndstewart

    02/02/09 | Report as spam

    RE: What Should US Air Offer Crash Victims?

    ?You?re going to crash me into the water, and you?re going to tell me all I get is an upgrade?? Would you rather it had been into downtown Manhattan? Dude, you are one luck sole just to be alive! You beat the odds of surviving a plane crash and lucked out to be flying with Sully. Take the bus next time.

  •  
    11

    schaded

    02/02/09 | Report as spam

    RE: What Should US Air Offer Crash Victims?

    I believe, as evidenced by all of the comments to date, that the majority of people (maybe a shrinking majority, but still a majority) are essentially good, not greedy and selfish. I think Mr Sales was singled out as the lone loser on this flight by the NY Post because issues like this irritate good people and sell papers. As for Doug Parker, I happened to have worked with/for him in my days as a finance manager for a division of America West Airlines (pre-merger), and witnessed first hand his integrity and willingness to do the right thing, even if there were easier or cheaper options. I imagine he felt that, although they were not at fault, offering something to these people was the right thing to do.

  •  
    12

    Lyle Orth

    02/02/09 | Report as spam

    RE: What Should US Air Offer Crash Victims?

    The CEO of US Air has made the right decision. His Customers were greatly inconvenienced by the accident. As a business Owner, we have to take the extra steps to support our Customers even when the accident was not caused by our actions.
    As for Antonio Sales,I would be thankful that I was flying with US Air when the accident happened.

  •  
    13

    frenchresistance1

    02/02/09 | Report as spam

    RE: What Should US Air Offer Crash Victims?

    The CEO has done a great job of managing this crisis. It's just that everyone in this society thinks they deserve their assess kissed as well as a ton of money. I think when we all fly we understand it's a given that we might crash. If it's the airlines fault, of course you can use legal means, but if it's a flock of geese, well, how in the hell did the airline know that was going to happen. Get a life. Not everything deserves compensation. I think the CEO, and his PR advisors, are right on the mark. Hey, these folks are alive.

  •  
    14

    jiking

    02/03/09 | Report as spam

    RE: What Should US Air Offer Crash Victims?

    I think their offer is quite reasonable though it should include covering medical expenses (unless that is covered under point #4).

    Personally, I would happily take that along with the gift of one heck of a story to tell!

  •  
    15

    cblapp

    02/04/09 | Report as spam

    RE: What Should US Air Offer Crash Victims?

    I absolutely agree that the ariline is not responsible for the accident (has anyone heard the term Act of God?); only for their response to it. They have responded magnificently, from the pilot's ability to land the plane safely in the river, to the crew's ability to get everyone our of the aircraft and onto the rescue boats, to the company's offer of $5,000 plus any additional expenses over that amount.

    Unfortunately, the "gimme" culture that has evolved in this country - and other parts of the world - have passengers already contacting attorneys because they are now "nervous and tense" when they fly.

    There were also helpful and competent passengers who helped others to safety, and boaters - municipal and not - who put their craft in danger to get close enough to pick up the crash survivors (let's not call them victims - they are alive and mostly unharmed).

    How sad that people can't take the fact that they are alive because this airline took care of its planes and hired excellent pilots and crew as a blessing instead of wanting to profit from an unavoidable accident.

  •  
    16

    wayne001

    02/04/09 | Report as spam

    RE: What Should US Air Offer Crash Victims?

    I bet Sales was the first one off the plane and didn't lift a finger to help anyone else out. He probably grabbed his luggage from the overhead bin before he left also.

  •  
    17

    crodgers

    02/04/09 | Report as spam

    RE: What Should US Air Offer Crash Victims?

    Wow, this entitlement crap is ridiculous!

  •  
    18

    calbill

    02/09/09 | Report as spam

    RE: What Should US Air Offer Crash Victims?

    When one purchases an airline ticket there is standard contract attached to this transaction. The airline needs to respect its obligations and nothing more. In this case the airline is honoring its contractual obligations plus making a good will gesture. Apparently some passengers of flight 1549 expect more not because they deserve more but because they are living in a society in which if you whine you get rewarded. This is a sick symptom of our American society that needs a remedy.

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