Wichita State University Libraries SOAR : Shocker Open Access Repository Airline Quality Rating Report

The Airline Quality Rating (AQR) was developed and first announced in early 1991 as an objective method for assessing airline quality on combined multiple performance criteria. This current report, the Airline Quality Rating 2013, reflects monthly Airline Quality Rating scores for calendar year 2012. AQR scores for 2013 are based on 15 elements in four major areas that focus on airline performance aspects important to air travel consumers over the calendar year of 2012. The Airline Quality Rating 2013 is a summary of month-by-month quality ratings for U.S. airlines that are required to report performance by virtue of having at least 1% of domestic scheduled-service passenger revenue during 2012. Using the Airline Quality Rating system of weighted averages and monthly performance data in the areas of ontime arrivals, involuntary denied boardings, mishandled baggage, and a combination of 12 customer complaint categories, airlines’ comparative performance for the calendar year of 2012 is reported. This research monograph contains a brief summary of the AQR methodology, detailed data and charts that track comparative quality for domestic airline operations for the 12-month period of 2012, and industry results. Also, comparative Airline Quality Rating data for 2011 are included, where available, to provide historical perspective regarding performance quality in the industry. The Airline Quality Rating (AQR) System The majority of quality ratings available in the past have relied on subjective surveys of consumer opinion that were infrequently collected. This subjective approach yields a quality rating that is essentially non-comparable from survey to survey for any specific airline. Timeliness of survey-based results can be a problem in the fast-paced airline industry as well. Before the Airline Quality Rating, there was effectively no consistent method for monitoring the quality of airlines on a timely, objective, and comparable basis. With the introduction of the AQR, a multi-factor, weighted average approach became available that had not been used before in the airline industry. The method relies on utilizing published, publicly available data that reports actual airline performance on critical quality criteria important to consumers and combines them into a rating system. The final result is a rating for individual airlines with interval scale properties that is comparable across airlines and across time periods. The Airline Quality Rating (AQR) is a weighted average of multiple elements (see Table 1) important to consumers when judging the quality of airline services. Elements considered for inclusion in the rating scale were screened to meet two basic criteria; 1) an element must be obtainable from published data sources for each airline; and 2) an element must have relevance to consumer concerns regarding airline quality. Data for the elements used in calculating the ratings represent performance aspects (on-time arrival, mishandled baggage, involuntary denied boardings, and 12 customer complaint areas) of airlines that are important to consumers. All of the elements are reported in the Air Travel Consumer Report maintained by the U.S. Department of Transportation. Weights were originally established by surveying 65 airline industry experts regarding their opinion as to what consumers would rate as important (on a scale of 0 to 10) in judging airline quality. Each weight and element was assigned a plus or minus sign to reflect the nature of impact for that criterion on a consumer's perception of quality. For instance, the criteria of on-time arrival performance are included as a positive element because it is reported in terms of on-time successes, suggesting that a higher number is favorable to consumers. The weight for this criterion is high due to the importance most consumers place on this aspect of airline service. Conversely, the criteria that includes mishandled baggage is included as a negative element, and is reported in terms of mishandled bags per 1000 passengers served, suggesting that a higher number is unfavorable to consumers. Because having baggage arrive with passengers is important to consumers the weight for this criterion is also high. Weights and positive/negative signs are independent of each other. Weights reflect importance of the criteria in consumer decision-making, while signs reflect the direction of impact that the criteria should have on the consumer's rating of airline quality. When all criteria, weights and impacts are combined for an airline over the year, a single interval scaled value is obtained. This value is comparable across airlines and across time periods. In the spring of 2002, a nationwide survey of frequent flyers was conducted that allowed a revisiting of the weighting for the AQR elements. Analysis of the sample of 766 opinions showed no appreciable difference in the relative weights for the AQR elements. To maintain comparability across the years, the weights have been held constant. The Airline Quality Rating criteria and the weighted average methodology allow a focused comparison of domestic airline performance. Unlike other consumer opinion approaches that have relied on consumer surveys and subjective opinion, the AQR continues to use a mathematical formula that considers multiple weighted objective criteria to arrive at a single, fully comparable rating for airline industry performance. The Airline Quality Rating provides both consumers and industry watchers a means for monitoring comparative quality for each airline on a timely basis, using objective, performance-based data. Over its 23 year history, the Airline Quality Rating has often been cited as an industry standard for comparing airline performance. Currently the AQR stands as the only regularly published rating available for airline performance. With the continued global trend in airline operations alliances, the argument becomes even stronger for the Airline Quality Rating to be used as a standard method for comparing the quality of airline performance for international operations as well.