Sirius Blogging

Airline risks from social media and “United Breaks Guitars”

 

At its core, the airline industry is risk averse.  Typically, that’s applauded.  We want them to avoid risks, especially if we share in the consequences.

 

Airlines avoid change because it involves risk.  They change if dictated by governmental regulations or labor agreements or there is clear anticipatory evidence that revenues will be increased significantly or costs and/or risk will be reduced.

 

Their current policy for accepting musical instruments as baggage has customers accepting most of the risk, even if the airline acts negligently.  Airlines maintain liability for loss but not damage.  With required baggage and identification tags, very few bags are lost for good although, many are delivered in crumpled heaps.

 

Checking properly packed instruments should pose no greater risk than other baggage during normal handling.  Airlines have insisted they have no control over packaging, how the instrument is packed and lack expertise at the point of acceptance (ticket counter, skycap) to determine content conditions.  This can all be addressed by certifying packaging for safe transport and cursory acceptance training, as done for carriage of live animals and dangerous goods.

 

Until recently, risk costs for mishandling reasonable amounts of normal baggage were included in ticket prices, whether or not the passenger actually checked luggage.  Now, many airlines charge to carry checked bags but the limited liability for musical instruments remains.

 

Airline policy for transporting musical instruments as baggage is opportunistic.  Airlines understand there are no comparable alternatives for those traveling with instruments.  They are incented to have customers accept risk but not to handle instruments with care.  Until now.  Social media has got at least one airline to reconsider the policy because of risk to their treasury.

 

Several months ago Dave Carroll, a struggling musician, accepted the limited liability for checking his Taylor guitar on United Airlines for his connecting flights between Halifax and Omaha.  However, while changing planes in Chicago, Mr. Carroll noticed his guitar being handled roughly on the tarmac.

 

Upon arriving and finding his guitar damaged, Mr. Carroll plead with the Friendly Skies to accept responsibility.  He was denied by both the local office and United’s baggage service headquarters.  He sought justice via the court of public opinion, produced a video about his plight and posted it on Youtube.

 

It helps that the tune is catchy and Mr. Carroll has some talent but, within a few weeks millions had viewed the video (viewed nearly 6.5 million times to date).  United has offered to settle the claim in exchange for removing the video from Youtube.  Dave was no longer interested in settling.

 

Links to the video were sent to many guitar playing friends who travel.  A viral firestorm formed.  So, what possible damage did this do to United?

 

If as a result of viewing this video, 1% of the viewers did what the song suggests and “fly another airline or drive…”, and the average ticket price is $200, the cost to United has been $13 million.  Certainly it would have been a better option to repair Dave’s Taylor.

 

It is unlikely that Mr. Carroll’s case will change the industry’s limited liability policy for musical instruments as checked baggage by itself.  But, it had to get their attention.  If United Airlines measures the social media risks for continuing this policy, it may find it cost effective to lead its industry toward approving suitable packaging for and accepting damage liability of musical instruments as checked luggage.

 

Craig Ruess

 

Craig Ruess’ airline career started in 1977, before the Internet had significance.  Since September, 2003 Mr. Ruess has been a Digital Marketing Consultant with Sirius Business Solutions, Inc. and WSI Serious Web Solutions.  Craig partners with Kevin Dean of WSI Net Advantage to offer monthly Better Web Results Workshops for industries such as Home Improvement, Law, Auto Service and Machine and Sheet Metal Shops.