Case 2 - Baggage Complaints: Descriptive Statistics and Time Series Plots

Baggage Complaints: Descriptive Statistics and Time Series Plots

Background
Anyone who travels by air knows that occasional problems are inevitable. Flights can be delayed or cancelled due to weather conditions, mechanical problems, or labor strikes, and baggage can be lost, delayed, damaged, or pilfered. Given that many airlines are now charging for bags, issues with baggage are particularly annoying. Baggage problems can have a serious impact on customer loyalty, and can be costly to the airlines (airlines often have to deliver bags). Air carriers report flight delays, cancellations, overbookings, late arrivals, baggage complaints, and other operating …show more content…

Exhibit 3 Calculating Baggage %
(Create a new column in the data table, and rename it Baggage %. Right click on the column header, and select Formula to open the Formula Editor. To create the formula: 1. 2. 3. 4. 5. 6. Type 100 Select multiply on the keypad Select Baggage from the columns list Select divide by on the keypad Select Enplaned from the columns list Click OK.)

In Exhibit 4 we compare the records of the three airlines using Baggage %. We see that American Eagle has the highest rate of baggage complaints when adjusted for number of enplaned passengers. Exhibit 4 Average Baggage % by Airline

Plotting the Baggage % on a time series plot allows us to see changes over time. In Exhibit 5 we see that baggage complaint rates from American Eagle and United passengers increased through 2006 and began declining thereafter.

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Exhibit 5 Time Series Plots of Baggage % by Airline

The time series for Hawaiian passengers in Exhibit 5 is relatively flat compared to American Eagle and United, so it’s difficult to detect a pattern over time. In Exhibit 6 we isolate the data for the Hawaiian flights. Complaint rates for Hawaiian passengers began to drop in the summer of 2008 until fall of 2010, after which the rate of complaints returned to historical levels. Exhibit 6 Data Filter and Time Series Plot of Baggage % - Hawaiian