US Airways 2007 Annual Report Download - page 16

Table of Contents
(d) Rate of customer complaints filed with the DOT per 100,000 passengers.
We faced major operational challenges during the first half of 2007 resulting from adverse weather conditions in the northeast,
heavy air traffic congestion in many of our hubs and difficulties associated with the migration to a single reservation system in early
March 2007. All of these factors contributed to a difficult operating environment. During 2007, we implemented several initiatives to
improve operational performance as follows:
• We hired approximately 1,000 new employees system-wide to boost airport customer service.
• Starting with the June 1, 2007 schedule, we lengthened the operating day at our hubs, lowered utilization, and increased the
number of designated spare aircraft in order to ensure operational reliability.
• We established Passenger Operations Control (POC) centers at our Philadelphia and Charlotte hubs and at Reagan National
airport. These POC centers monitor all inbound flight activity and identify customers who are on flights that for whatever reason
(weather, air traffic congestion, etc.) might miss their connecting flights. The POC center professionals interact closely with the
airline's System Support Center to rebook passengers who may misconnect even before the inbound flight lands.
• We announced in the third quarter of 2007 the appointment of Robert Isom as the new Chief Operating Officer to head up the
airline's operations including flight operations, inflight services, maintenance and engineering, airport customer service,
reservations, and cargo. Mr. Isom has over ten years of airline experience at Northwest Airlines, Inc. and AWA.
The implementation of our initiatives resulted in an improved trend in operational performance since the second quarter of 2007. In
the fourth quarter of 2007, our on-time performance improved to 76.9% as compared to 64.3% in the second quarter of 2007. In the
month of December 2007, our on-time performance was ranked first amongst the ten largest U.S. airlines. Our rate of customer
complaints filed with the DOT per 100,000 passengers improved, decreasing to 2.27 in the fourth quarter of 2007 from 3.64 in the second
quarter of 2007. Our rate of mishandled baggage reports per 1,000 passengers was 7.28 in the fourth quarter of 2007, an improvement
from 8.57 in the second quarter of 2007.
Frequent Traveler Program
All major United States airlines offer frequent flyer programs to encourage travel on their respective airlines and customer loyalty.
US Airways' Dividend Miles frequent flyer program allows participants to earn mileage credits for each paid flight segment on US
Airways, Star Alliance carriers, and certain other airlines that participate in the program. Participants flying on first class or Envoy class
tickets receive additional mileage credits. Participants can also receive mileage credits through special promotions that we periodically
offer and may also earn mileage credits by utilizing certain credit cards and purchasing services from non-airline partners such as hotels
and rental car agencies. We sell mileage credits to credit card companies, telephone companies, hotels, car rental agencies and others that
participate in the Dividend Miles program. Mileage credits can be redeemed for free, discounted or upgraded travel awards on US
Airways, Star Alliance carriers or other participating airlines.
US Airways and the other participating airline partners limit the number of seats allocated per flight for award recipients by using
various inventory management techniques. Award travel for all but the highest-level Dividend Miles participants is generally not
permitted on blackout dates, which correspond to certain holiday periods or peak travel dates. US Airways reserves the right to terminate
Dividend Miles or portions of the program at any time. Program rules, partners, special offers, blackout dates, awards and requisite
mileage levels for awards are subject to change. On January 31, 2007, we changed our program regarding active membership status to
require members to have either earned or redeemed miles within a consecutive 18 month period to maintain active membership status.
Prior to the change in the program, members were granted a 36 month period to maintain active status.
Ticket Distribution
The now common usage of electronic tickets within North America, and the rapid expansion of electronic ticketing in Europe and
elsewhere, have allowed for the streamlining of processes and the increased efficiency of customer servicing and support. During 2007,
electronic tickets represented 99% of all tickets issued to customers
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