As US Airways (NASDAQ:UAIR) slides back into bankruptcy, it should take a hint from Hawaiian Holdings (AMEX:HA). The company's Hawaiian Airlines subsidiary is also under the direction of a bankruptcy trustee, but it is the first to introduce a new service that will both satisfy customers and help streamline airline operations.
Hawaiian passengers can already check in over the Internet. Using BaggageDirect.com, they can now check in luggage from their home, office, or hotel (at least 12 hours notice is required). When passengers arrive at the airport, they go through security and directly to their departure gate.
The goal is no lines, no waiting, and no hassles.
Using guidelines approved by the Transportation Security Administration (TSA), BaggageDirect will send a trained, uniformed, and TSA-certified "mobile skycap" to retrieve the luggage and present the passengers with their boarding passes and baggage claim receipts. The cost for one person with two pieces of luggage is $30. It is $15 for each additional person going to the same location.
Besides reducing the crush of people at the ticket counter and providing enhanced customer service, airline operations can be optimized because pre-checked luggage can be sent through screening devices at nonpeak periods. The net result is better service for everyone.
Motley Fool Stock Advisor recommendation JetBlue (NASDAQ:JBLU) has been establishing new levels of customer service, charging discount prices, and growing quickly. It will be interesting to see whether Hawaiian can translate a somewhat costly baggage service into more paid passengers and higher operating margins.
Many investors are probably asking why American parent AMR (NYSE:AMR), Delta (NYSE:DAL), Northwest (NASDAQ:NWAC), and all the other full-service legacy airlines are not offering a service like this -- especially to retain their high-margin first-class passengers. Then again, maybe the fact they are not first is indicative of why other airlines are stealing their customers.
Discuss JetBlue and Delta Air Lines -- and thousands of other stocks -- on The Motley Fool discussion boards.
Fool contributor W.D. Crotty does not own stock in any of the companies mentioned, but he'd love to return to Hawaii -- to escape Ivan!
