Midwest Express Wins Gold In Smaller Carriers Category

Midwest Express for the second consecutive year scored highest among the four smaller U.S. carriers listed in BTN's Annual Airline Survey. The Milwaukee-based carrier swept virtually every category, placing first in the eyes of both corporate travel decision makers and travel agencies. In fact, Midwest Express' overall combined score of 3.25 out of 5 was nearly 20 percent above its closest competitor and ranked behind only four major carriers.

To be fair, the other three smaller carriers—AirTran Airways, American Trans Air and Frontier Airlines—operate within either low-fare or affordable fare models, whereas Midwest Express is known for its quality of service. Even so, Midwest Express easily won the overall price value category with a 3.73, a score that also beat out all major carriers with the exception of Southwest Airlines.

AirTran, American Trans Air and Frontier, however, did improve their overall scores versus last year, indicating a generally more favorable perception of the industry's low-fare segment while the economy stays sour. The success of JetBlue Airways further promoted low-fare operations throughout the country, but the New York-based carrier was just beginning to ramp up operations last year and thus was excluded from this survey.

The four smaller carriers included in this segment do not qualify for major carrier status, as defined by the U.S. Department of Transportation. Due to limited route networks, usage among survey respondents was between 40 percent and 50 percent. However, in all four cases, those figures substantially were higher than last year's, suggesting corporations are more likely to try these smaller carriers and use them when it makes financial sense without sacrificing traveler convenience.

"This segment of the industry is very service-oriented and more visible than it has been historically," said Brian Mogler, American Express director of consulting services. "Those carriers complement preferred supplier programs, driven by pricing and markets served."

Not only did Midwest Express lead small carriers in the survey, but it also improved its overall score among both subsets of respondents. Furthermore, when comparing Midwest Express with the 10 major carriers, it finished fourth or better in six of 10 categories, including complaint/problem resolution, for which it earned the industry's best score.

Much of the improvements can be attributed to the carrier's emerging corporate sales program. Currently, more than 50 corporations have agreements with Midwest Express, compared with only a select few one year ago. "It has been an evolution to become more receptive and aggressive regarding corporate discounting. The policy until 18 to 24 months ago had been to completely avoid doing that and to let standards of service speak for themselves," said Kevin Farley, the carrier's director of sales as of January. "But since I have come in, I have tried to get more empowerment for sales reps and have decisions made in the field."

Midwest Express' overall score among corporate buyers rose slightly but its score among travel agents rose a whopping 28 percent. Indeed, its 3.20 agency aggregate score compares quite favorably with the other three smaller carriers, which did not receive an overall agency score above 2.55.

However, Farley acknowledged that "we are not all things to all people." Scores were low for quantity of sales rep visits and availability of timely and accurate flown data.

The other three smaller carriers congregated at the bottom of the list, with only .09 separating their aggregate scores. Denver-based Frontier and Orlando-based AirTran finished neck and neck for second and third place. Frontier performed better among corporate buyers while AirTran received slightly higher marks from travel agency representatives.

Overall, Frontier's combined score improved, but lower scores in all 10 categories drove performance, measured specifically by corporate buyer responses, down to 2.73 from 3.06.

AirTran also received improved scores from respondents at large—including a 50 percent year-over-year gain among agents—and finished a mere .01 behind Frontier overall. The biggest improvements were seen in quality of communication and complaint/problem solving. However, its agency score for quantity of sales reps registered at just 1.54, the lowest individual score in the entire survey.

Nevertheless, AirTran has garnered corporate support in some of its business markets as buyers beholden to local hub carriers seek cost relief. The most well-known case is Atlanta, where many corporations have shifted traffic away from Delta. But a Pittsburgh-area travel manager, frustrated by US Airways and speaking to BTN on the condition of anonymity, said AirTran is doing an excellent job in approaching corporations. "We have told AirTran that we will support them and have put some mandates out there that they be used," the travel manager said.

Meanwhile, Chicago-based American Trans Air again finished in the basement, with an overall score of just 2.57. Still, that score was a vast improvement over the 1.95 it achieved a year ago.