Passenger grievances do not impact the financial performance of carriers reports a new study. "We have found no link in customer satisfaction and financial performance,” says Jeffrey Wong, a professor of accounting at the University of Nevada, Reno. “Airlines don’t seem to place a priority on customer service despite the fact that they advertise to the contrary. And yet, some airlines are still profitable.” In 2017, US carriers saw an after-tax net profit of US$15.5b, up from $14b in 2016. Wong said airlines carefully choose the services they provide to customers. “In the end, their profitability does not appear to be dependent upon customer service, based on our analysis,” Wong said. “Given that the airline industry offers a service with few alternatives, the findings of our research may not be surprising." <br/>
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Congress approved legislation Wednesday that reauthorizes the FAA for 5 years. The legislation bars in-flight cell phone calls as well as the forcible removal of passengers. But perhaps more important is what is not in the bill. There are no new rules on airlines’ fees for reservation changes or bags and there is no move to privatise ATC. Part of the bill requires the FAA to determine within a year the minimum distance between seats by studying how quickly people can safely evacuate different airplane configurations. Most airlines in the US currently put 30 inches of space between rows in economy class, though some no-frills airlines like Spirit put only 28 inches between seats. “If they come up with a minimum seat regulation, that minimum will mirror the minimum in the market today,” said aviation consultant. <br/>
The International Court of Justice judges have ruled that the US govt must lift sanctions against Iran which pose a threat to civil aviation safety. The ruling follows consideration of measures imposed this year when the USA withdrew from participating in a multinational deal on Iran’s nuclear programme. Sanctions against export of commercial aircraft and parts to Iran took effect in early August. But Iranian representatives alleged that the US govt was violating a 1955 treaty on amity and economic relations between the two countries. The International Court of Justice states that, while some of Iran’s rights under the treaty might have been affected, it views other rights – such as those relating to import of humanitarian goods, or services to ensure civil aviation safety – as not being so. <br/>