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The Prie of Customer Service

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Submitted By jjacobs0111
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The Price of Customer Service

Jessica Jo Jacobs
1352 West 5th St. #N27
Ontario, CA 91762

Southern Illinois University Carbondale

AVM 450-3 Management Problems in the Aviation Industry

Spring 2014

Mt. San Antonio Community College

Assignment #3
Abstract
The incredibly small profit margin that exists with the operations of airlines causes special attention to be paid to customer service. In order to decide how much money is to be spent of satisfying a customer, one must first discover how profitable a satisfied customer really is to an airline. Through the use of on-line journals, news articles, and case studies, information will be presented that will help develop an opinion. The end result will prove why customer service is an essential part of profitability.

The Price of Customer Service In an industry where it is a constant balance to keep a profitable margin, customer service that can be expected at various airlines can vary extremely. From a management perspective the question is how much will the customer service cost and does the cost outweigh the profit that results from said services. Services to be considered include baggage fees, loyalty programs, available attendants, check-in services, in-flight services, and level of technology available to customers. Directly related to customer service and the profitability generated by it is the structure of operations and management theory in use at each individual airline. By evaluating management theories, company culture, and operations, and then comparing these to profits of each airline, a conclusion can be drawn that will identify the most important and profitable principles of customer service and describe how to successfully integrate the findings into the operations.
The level of customer service varies from airline carrier to airline carrier. Some airlines, such as Southwest,

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