Saturday, October 12, 2013

Flying in Europe and North America, puzzling differences

I have recently had the opportunity to fly extensively across both Europe and North America, and it has struck me how different the experience was. It is also puzzling me why this is so.

Let me first highlight the differences I observed. On almost all counts, flying in Europe seems superior. The aircraft are newer, they are equipped with entertainment systems or individual monitors, they serve meals, and flight staff is attentive. Airports are not overcrowded and well-connected to cities, usually by train or subway. Security is rather smooth and security personnel seems "normal".

Contrast this with North America, where the fleet is old and noisy, nothing but a magazine is offered as entertainment, everything but non-alcoholic drinks is nickel and dimed (and the airline's credit card is constantly peddled to you), and flight staff seems tired or disgruntled. Airports are full to the brim and impractical, in particular you have to rent a car or get an expensive taxi to get anywhere. Security is obnoxious and its personnel seems quite uneducated.

Even for transatlantic flights, there is a noticeable difference on similar counts between US and European airlines.

And with that, flying is less expensive in Europe, at least in my experience. Labor and fuel costs appear to be higher there, and I do not think European airlines are saving on their aircrafts as they are newer. Personnel, in particular, seems to have much better working conditions. A Delta stewardess, for example, told me she had to take a vacation day (one of 10 a year) to get a visa to fly overseas for Delta. And she is only paid when aircraft doors are closed. The dismal situation of US pilots is well known. I heard no similar complaints in Europe.

With all this, US airlines are doing very badly. They seem to have higher prices, lower costs and provide fewer services. How is this possible? Is it because there is more competition from rail and low-cost airlines in Europe? Is it because American airlines have some liabilities in their luggage, like large pensions or large overhead? The days of state subsidies for national airlines are long gone in Europe, so that cannot be an explanation either. I am left puzzled.

5 comments:

Anonymous said...

"The days of state subsidies for national airlines are long gone in Europe, so that cannot be an explanation either."

Sure.

http://www.reuters.com/article/2013/10/10/us-alitalia-idUSBRE9990RX20131010

That said, I agree that service is worse on U.S. airlines. But with prices, I don't agree at all.

1) I don't care if I have to pay $6-$10 for a sandwich. If I don't want to buy it on the plane, I buy it at the airport. U.S. airports have plenty of cheap meal opportunities. European airport food is mostly ridiculously overpriced.

2) The comment about how to get from the airport has nothing to do with airlines but rather with government investment into infrastructure and other types of regulation.

3) Since flying is much more widespread in the U.S., many airports and the aging air traffic control is at capacity. But that is mostly also controlled by the government. The U.S., for instance, is only now starting to use GPS!!!

LemmusLemmus said...

On the minor point of the airports being better connected, this is just a specific case of public transport being better in much of western Europe than it is in the U.S. (at least in many cities, it's heavily subsidized).

Anonymous said...

I have also wondered why US airlines are always on the verge of bankruptcy when their prices are higher and service and taxes are definitely lower.

Anonymous said...

In Asia, the services are even better and prices are lower. In fact, I believe Asia does a lot better in most industries in the service sector than the US in terms of the quality/price ratio.

Tim Worstall said...

"Labor and fuel costs appear to be higher there, and I do not think European airlines are saving on their aircrafts as they are newer."

Newer fleets are significantly cheaper to operate. That's part of the answer. Not all of it, but part.