Decline Of American Airlines Essay

Its importance role of providing a platform for unions to negotiate and bargain with their respective airlines has minimized or prevented the extent of the damages strikes have on the airline industry. Strikes, such as the one by ALPA, have been proven to be disastrous with regard to public interest. RLA’s role cannot be taken lightly as an absence of such an act would be extremely detrimental to the airline industry and ultimately, United States’ commerce.

In 2015, it showed in the record that the number of employees American Airline has was 110,300 employees within different departments such as flight attendants, and ground workers and pilots. With this huge number of workers, they need a representative to make their rights will be claimed. That why American Airline has a voice with a different labor unions such as Association of Professional Flight Attendants (APFA), Air Line Pilots Association (ALPA), Transport Workers Union-International Association of Machinists alliance (TWU-IAM) and Allied Pilot Association (APA). Therefore, the airline will be forced to consider and listen to the labor unions and their demands to avoid strikes that can damage the reputation of the company.

To start, the workers had four main reason that cause them to go on strike. The first reason was that the employees were under-rewarded and overwhelming. Their nest reason was that their working hours were unreasonably long. The following reason was the FAA, Federal Aviation Administration, did not really supervise the safety on the work places for the workers. the last reason was

Some argue that the 9/11 attacks hastened the airline industry to make changes that would have come sooner or later because many carriers were already in financial trouble. The airlines were forced to make cuts in their cost structure and renegotiate labor expenses due to a decline in passenger demand, which realistically was needed regardless of the 9/11 attacks (Logan).

On August 12, 1994 professional baseball players went on strike for the eighth time in the sports’ history. Since 1972, negotiations between the union and owners over contract terms has led to major economic problems and the absence of a World Series in 1994.

The issues between the union and the Magic Carpet Airlines are that the airlines do not pay their flight attendants duty rig pay, there is no job security, and they weren’t able to use their sick leave when they were sick. They did not agree with the way they had to give a five day notice to swap routes with other Magic Carpet Airlines flight attendants. Their major concerns were their direct wages, they wanted to be paid more and have duty rig, and have job security. These concerns were all determined by surveys that were mailed out to each of the union members, and flight attendants voicing their concerns.

The airline industry is one of the largest and most innovative industries within the United States. Aside from the innovations for which it is reputable and which changed the world the US airline industry is also notable in terms of the developments registered at the level of collective bargaining. The lines below reveal a brief time line of the events after 1978:

On August 3, 1981, nearly 13,000 of the 17,500 members of the Professional Air Traffic Controllers Organization (PATCO) staged a walk out and strike. There were four main reasons the union members of PATCO decided to go on strike. First, to address the concerns by members who felt that their work was seriously undervalued and under-rewarded. The second reason was that the Federal Aviation Administration had neglected serious deficiencies in staffing and hardware reliability. Thirdly, their work week was unreasonably long, especially when compared to controllers overseas. The fourth reason for the strike was the FAA’s (FEDERAL AVIATION ADMINISTRATION) approach to management-union relations and the

During 4 nerve-wrecking months, there were comprehensive negotiations and discussions among the management and labor to achieve a sensible understanding agreement between the parties. The strike made an impact on the agreement, which made a great

Globalization can be defined as “making worldwide in scope or application”(1). In this comparison of the global corporate culture of Northwest Airlines and American Airlines several areas will be addressed. The strength of the global culture with-in the companies. The fit of the company to the global marketplace, and the adaptive ness or the empowerment of the employees will be examined and compared. Perhaps more important, than whether they currently have a global atmosphere, is whether they can improve or create this atmosphere. A comparison between the two airlines will be made on their mission statements, information dissemination, global-mindedness,

Northrup’s 1984 article “The Rise and Demise of PATCO” argues that both PATCO and the Reagan administration were justified in their actions, but both took unnecessary measures in the wake of new president Reagan’s policies. Northrup, an economist, compiled his essay from sources such as interviews with FAA employees, government reports, court cases documents, secondary economics sources. This highly objective essay highlights both the US government’s earlier concessions to PATCO, PATCO’s greediness, PATCO’s failures, and the Reagan administrations harsh reactions. Northrup concludes that PATCO had received generous offers from the Reagan administration but continued to strike out of greed and that if they and congress would have accepted previous agreements it would have changed the face of labor relations in the United States. This article matter because it gives us a glimpse into the reasons behind PATCO’s failure from the labor union’s point of view as opposed to the Reagan centric examination of the 1980s most often

The domestic US airline industry has been intensely competitive since it was deregulated in 1978. In a regulated environment, most of the cost increases were passed along to consumers under a fixed rate-of-return based pricing scheme. This allowed labor unions to acquire a lot of power and workers at the major incumbent carriers were overpaid. After deregulation, the incumbent carriers felt the most pain, and the floodgates had opened for newer more nimble carriers with lower cost structures to compete head-on with the established airlines. There were several bankruptcies followed by a wave of consolidation with the fittest carriers surviving and the rest being

American Airlines (American) made four fundamental changes to its rates. First, it moved to a four-tier rate structure; American offered first-class rates and three tiers of coach: full-fare, 21-day advance purchase and 7-day advance purchase. Overall, it expected to reduce coach fares by 38% and first-class fares by 20% to 50%. Though full fare coach prices dropped by about 38%, advance-purchase fares dropped by 6% when compared to the advance purchase tickets already being offered. Through this fare structure, American also eliminated deep discount tickets. Second, American eliminated the negotiated discount contracts of many large

At the onset of the airline industry in the United States, major network airlines were the sole providers of air travel. This multifaceted industry was a difficult industry to break into as a consequence of “sophisticated customer segmentation, hub-and spoke models and costly information systems for reservations, fare wars and intense competition” (Thompson 2008). Shrinkage in airline ticket prices augmented the demand for airline travel. Many markets were simply deserted or over-looked by major network airlines; this is a region a fresh “second tier of service providers” could enter into. This endeavor proved to provide a consumer savings of billions per year. Thus in June of 1971, after a tumultuous battle with other Texas-based

American Airlines was the United States’ largest carrier in 1992 with a fleet of 622 jet aircraft, flying 2,450 flights daily to 182 locations, as well as new innovative technology and programs. American Airlines was the first to introduce a computerized airline reservation system called Sabre, “Super Saver” fares and frequent flier programs. Regardless of the innovations, American Airlines and the airline industry was still not operating as profitably or providing customer satisfaction the way it should have in 1992. In 1991, As a result of a recession and the Gulf War, demand for air travel fell, fare wars came about, and the airlines