BATANGAS STATE UNIVERSITY

COLLEGE OF ACCOUNTANCY, BUSINESS, ECONOMICS AND

INTERNATIONAL HOSPITALITY MANAGEMENT

A CASE ANALYSIS
OF
MISHANDLED BAGGAGES
IN PSA AIRLINES

In Partial Fulfillment of the Requirements for

IHM 103 – Quality Service Management
In Tourism and Hospitality

Submitted by:
Dotig, Claudine P.
BSTM 1104 Student

Submitted to:
Efren S. Catapang, Jr.
Instructor

December 9, 2021
I. OVERVIEW
PSA Airlines is an American regional airline headquartered at Dayton International
Airport in Vandalia, Ohio, United States. The airline is a wholly owned subsidiary of the
American Airlines Group, and it is paid by fellow group member American Airlines to staff,
operate and maintain aircraft used on American Eagle flights that are scheduled,
marketed and sold by American Airlines.
Pacific Southwest Airlines was a United States airline headquartered in San Diego,
California, that operated from 1949 to 1988. It was one of the first large discount airlines
in the United States and is considered a precursor to Southwest Airlines. PSA was known
by its slogan "The World's Friendliest Airline" and for the iconic smile painted on the nose
of its airplanes, the PSA Grinning birds Opinion L.A. of the Los Angeles Times stated that
PSA was "practically the unofficial flag carrier airline of California for almost 40 years."
PSA was known for its sense of humor. Founder Ken Friedkin wore Hawaiian shirts
and encouraged his pilots and stewardesses to joke with passengers. Because of the
major San Diego flight schedule and its discount fares, military personnel nicknamed PSA
the "Poor Sailor's Airline."
Throughout PSA's lifetime, the flight attendants, with their humor, over-the-top
passenger service, and sense of duty, helped to create a loyal passenger following. One
flight attendant, Sandy Daniels, with the help of a frequent flyer, started the "Precious
Stewardess Association". Frequent fliers would bring tasty treats to the crew, particularly
on morning flights. In turn, PSA started the "Precious Passenger Association", with
certificates and free drinks given to friendly and helpful passengers.
The airline is named after Pacific Southwest Airlines (commonly known as just
PSA), one of the predecessors of today's American Airlines, to protect the trademark.
Regardless of how friendly their airline is, arising passenger’s complaints about
mishandled baggage happen in between flights. The number of mishandled bags is
caused by reasons such as lost, damaged, delayed, and pilfered. The mishandled
baggage can be also encountered if the baggage is improperly checked by skycaps, the
baggage may be claimed by the wrong passenger and the baggage may be delayed
because of the security.
According to the Bureau of Transportation Statistics, there are 17 air carriers that
reached the reporting threshold in domestic scheduled passenger revenues (one half
percent of total domestic scheduled service passenger revenues) for the 12 months
ending June 30, 2020.
One of the reporting air carriers included is PSA Airlines. PSA Airlines are required
to report the number of mishandled bags, as reported by or on behalf of passengers, that
were mishandled while in its custody, including gate-checked baggage, “valet bags,”
interlined bags, wheelchairs, and scooters since PSA Airlines ranked 11 over 17 air
carriers as of March 2020 to March 2021.
 This Case Analysis study reviews the number of mishandled baggage in Pacific
Southwest Airlines. The researcher will provide or address alternative solutions to the
said problems.

II. PROBLEM
Pacific Southwest Airlines or the PSA Airlines are one of the air carriers reported
with most handled baggage. A bag is considered delayed when it is reported as delayed
or lost, and the bag is not yet proven lost. However, there are still limited instances when
a carrier may exclude a bag reported as mishandled by or on behalf of the passengers’
report. In addition, there are mishandling caused by third parties. Third parties are
considered those who are not performing services on behalf of the carrier, such as when
the passenger authorizes the agent of a certain cruise ship to pick a bag on his or her
behalf. Therefore, in this case analysis, the researcher aims to illuminate explicit concerns
as follows:

a. Baggage delays and mishandling appear to occur during connection

Connections pertain to certain carriers that carry more bags than other
carriers. They are likely to have complications in handling baggage since they
have to deal with connections between international and domestic flights.
Larger carriers such as PSA Airlines tend to have a higher rate of baggage
problems by reason of numerous connections such as regional partners.

Baggage or bags may be mishandled off between carriers for the purpose
of transferring the bag to a connecting flight. Passengers reported mishandled
bags on international itineraries with domestic segments. The root cause was
the domestic itineraries with multiple operating carriers on a single ticket.
Regional airports such as PSA Airlines are largely based on transferring
baggage with minimum connecting times. These minimum connecting times
impact the baggage delay and arise the cause of transfer mishandling.

Under the baggage delays that occur during connection is the number of
bags enplaned. Enplaned bags pertain to the bags that were placed into the
aircraft cargo compartment for each domestic nonstop scheduled passenger
flight. Consequently, a one-way connecting passenger would have his or her
checked bag counted each time the bag was enplaned.

According to the Federal Register, the number of wheelchairs and scooters

accepted for transport in the aircraft cargo compartment is to be included in the
total number of checked bags enplaned. Similarly, the number of mishandled
wheelchairs and scooters is to be included in the number of mishandled
checked bags. They believe that the number of mishandled bags (and the rate
of mishandled bags per 1,000 bags enplaned, which will be calculated by DOT
 and included in our Air Travel Consumer Report) should include all items of
which the carrier took custody.

b. Airplane Baggage Handling Requirements

Airline passenger baggage are mishandled once more as a result of,

weather, theft, human error, and occasion, due to the screenings procedure.
Most of these baggage delays emerge by transfer baggage mishandling.

In addition, PSA Airlines also operates regional jets. These airplanes tend
to have more bulk and weight issues since they don’t have the same size
compartments that a bigger airplane can carry. The indicated situation may
have an impact also in baggage delays and mishandling.

Once mentioned by the Congress of the Committee on Transportation and

Infrastructure that other mishandling factors within the airlines' control include
things like tagging errors, loading errors, and space, and weight restrictions.
Each carrier tracks its operation and does its best to deal with these issues.
But in the aggregate, they really only amount to about a single-digit percentage
point of the problem.

The DOT Response according to the Federal Register: The Department

believes that requiring the reporting of data on the mishandling of all assistive
devices, particularly those transported in the passenger cabin, is impracticable.

The Department understands that airlines do not have a mechanism for

tracking items carried in the passenger cabin. Further, wheelchairs and
scooters are generally checked as single items, while other assistive devices
are generally stored inside baggage. Requiring the reporting of data on
assistive devices stored inside checked baggage would require passengers
and airlines to inventory such baggage. As a result, the Department will require
that carriers report data only on scooters and wheelchairs.

Another thing that impacts the mishandling of baggage in terms of airline

handling requirements is the screening delays. In such situations, passengers
were stuck in long security lines with backups, and the airport was
overcrowded. Baggage was sometimes left far behind during the baggage
screening process behind that can possibly cause to mishandling of baggage.

Gate-checked baggage is luggage that the traveler carried to the gate but
that was picked up by the carrier and checked into the aircraft’s baggage
compartment. This process requires automated high-tech systems that falls
under the airline handling requirements. Problems occur as the planes meets
the required capacity.
III. ALTERNATIVE SOLUTIONS

Pacific Southwest Airlines (PSA Airlines) are one of the airlines with the most
mishandled baggage that negatively impacts the customer service commitment. The
objective of this case analysis is to offer alternative solutions for the mishandling of
baggage in PSA Airlines as explained below:

III. 1. Customer Testimonies

An effective airline should assess ways on how to improve customer service

including the mishandling of baggage. PSA airlines should look forward to
receiving analysis, especially from their customers. The customer’s testimonies
and witnesses will help the airline gain an understanding of the cause of the
mishandled baggage. Customer testimonies will play an essential role in how the
PSA Airline will perceive solutions and recommendations in solving the problem.

According to Franzen (2015), Positive customer testimonials help to

establish your credibility and reliability as a business. Negative reviews can sway
buyer choices away from your company but may also provide you the opportunity
to show your target consumer how you work to make every situation right for every
customer whenever possible.

To learn about creative ways to solve problems inside and outside of the
airlines, communicate with your customer with their personalized experiences.

III. 2. Modernized Baggage Handling System

The old system of the airlines where we used to have these codes of carriers
and there were check-in agents to tag out and to match the destination where the
customer is going. The usual process results in the delay of the baggage and
probably to mishandling of baggage. Improvising things will be a great extent. It
will be the biggest area of improvement which is the modernization by the carriers
and its capacity.

Modernized systems will include programs to differentiate and sort things

that fall under baggage which are wheelchairs and scooters. And thus, air carriers
are needed to implement a new mechanism to capture such data in the baggage.

A statement published in the Federal Register is to comply because of the

time necessary for re-programming existing systems, installing new equipment,
and training employees. In particular, given that this rule can significantly change
the mishandled baggage metric. In addition, the modernizing of the baggage
handling system of a certain airline will provide them adequate time for updates
even in the internal system and reporting processes. This alternative solution can
change the game for the old systems of certain airlines that caused headaches on
passengers during their flights.
IV. RECOMMENDATIONS

Based on the alternative solutions in Section III of this case analysis in relation to
the mishandling baggage in Pacific Southwest Airlines (PSA Airlines), the researcher
highly recommends applying the Enforcement Policy regarding reporting the mishandled
baggage data of PSA Airlines.

With the issue being mentioned, the rule requires carriers to record the number of
bags that were mishandled rather than the number of passenger reports of mishandled
luggage. It also instructs carriers to record the number of bags on route rather than the
number of passengers. Furthermore, it compels air carriers such as PSA to record the
number of wheelchairs and scooters that were enplaned as well as the number of these
devices that were mishandled for the first time. Therefore, the presence of enforcement
policy regarding mishandled baggage data of PSA Airlines are hereby recommended:

a) Managers, as the superiors of the PSA Airline, must gather data and
information regarding the mishandled baggage happening inside their airline.
Employees must have enough knowledge to understand systems that will ease in
collecting data.

To justify this recommendation, Section 441 of the FAA Reauthorization Act

of 2018 provides that the compliance date for November 2, 2016, the final rule
shall be effective not later than 60 days after enactment of the Act, which is
December 4, 2018. A certain air carrier must submit mishandled baggage data to
the department with the said improved mishandled baggage methodology. This
will include the local scheduled flights, separately report statistics on mishandled
wheelchairs and scooters.

In addition, many airlines stated that obtaining data on mishandled baggage

including wheelchairs and scooters in the passenger cabin would be impossible
due to the lack of data on objects moved in the cabin. These initiatives will
generally reflect the same approach as their support for the proposed reporting
requirement for mishandled baggage, such as wheelchairs and scooters
transported in the air carrier compartment, so that travelers may make better-
informed selections.

b) Managers must ensure that the airline is well-constructed, and the systems
are modernized. In this action, the problems that occur in airlines such as
mishandling of baggage will lessen by monitoring the data given.

To justify this recommendation, Executive Order 12866 (Regulatory

Planning and Review) and DOT Regulatory Policies and Procedures mentioned
that the performance in baggage handling can be expected to improve with
purchasers better informed on the comparative performance of different carriers,
competition among airlines should sharpen. In addition, Members of the public
provided plenty of suggestions aimed at improving the air travel experience for
disabled travelers.
IV. POSSIBLE RESULTS AND OBSTACLES TO IMPLEMENTATION

Having chosen the Enforcement Policy regarding the reporting of mishandled

baggage as an alternative in solving the negative impacts of the problem, there are
positive results and obstacles as well as we prevent and lessen the complication, to
improve the customer service in PSA Airlines.

Members of the company and as well as the public made numerous

recommendations intended to improve the air travel experience for passengers without
having a small possibility of encountering complications in the mishandling of the
baggage. These recommendations include mandated upgrade on systems, exemption
fees for passengers with disabilities (Possibly because of the wheelchairs that need to
transport in air carriers), and a modernized way of checking baggage to avoid such
issues.

The difficulties of implementing it will be the amount of money that will be needed
in upgrading the system of the said airline. It is not impossible if the PSA Airline prioritized
finding the root cause where mishandling of baggage occurs to happen.

Therefore, the Enforcement Policy regarding the reporting of mishandled baggage

can be a solution to monitor data happening inside the PSA Airline which can lead to
smaller possibilities in encountering issues namely mishandling of the baggage.

VI. REFERENCES

Bts.gov (2018, November 1). Number 30 – Technical Directive: Mishandled Baggage,

effective Jan 1, 2019. Bureau of Transportation Statistics.
https://www.bts.gov/topics/airlines-and-airports/number-30-%E2%80%93-
technical-directive-mishandled-baggage-effective-jan-1-2019

Federal-Register.gov (2016, February 11). Reporting of Data for Mishandled Baggage

and Wheelchairs and Scooters Transported in Aircraft Cargo Compartments.
Federal Register. https://www.federalregister.gov/documents/2016/11/02/2016-
26181/reporting-of-data-for-mishandled-baggage-and-wheelchairs-and-scooters-
transported-in-aircraft-cargo

Franzen, K. (2015). Why Customer Testimonials are Important for your Business. Neon
Goldfish. https://blog.neongoldfish.com/general/why-customer-testimonials-
important-for-your-business

Govinfo.gov (2006, May 3). Mishandled Baggage: Problems and Solutions. Committee
on Transportation and Infrastructure. https://www.govinfo.gov/content/pkg/CHRG-
109hhrg28283/html/CHRG-109hhrg28283.htm
Transportation.gov (2018, October 31). Enforcement Policy Regarding Reporting of
Mishandled Baggage And Wheelchair Data. United States of America Department
of Transportation Office of the Secretary Washington, DC.
https://www.transportation.gov/sites/dot.gov/files/docs/resources/individuals/aviat
ion-consumer-protection/323451/mishandled-baggage-and-wheelchair-reporting-
enforcement-policy.pdf