The Impact Of Outsourcing On The Airline Industry

The Airline industry is a large and constantly growing industry. It facilitates economic growth, international investment and world trade and is therefore central to other industries as well for globalisation. There are various forces which lead to globalisation in airline industry. Key drivers of change are forces likely to affect the structure of an industry; sector or market. (1).

Seventy percent of the aircraft’s production and designing was outsourced to over fifty Tier 1 suppliers compared with only thirty-five to fifty percent that was traditionally outsourced in the production of other aircrafts (S. Tang and D.Zimmerman, 2009: 77). In late 2008, over twenty-seven thousand Boeing employees went on strike due to the company’s outsourcing policies and what its effects on job security (Doornbos n.d.). The strike lasted for fifty-seven days and it would cost Boeing a total of three months in production time, an estimated $100 million a day in revenue, and approximately $7 million a day in net income (Isidore

By outsourcing, Qantas is able to significantly reduce costs and maintain it’s competitive advantage. However this advantage also has a draw back, hundreds of engineers have also been cut from their jobs and have had their jobs given to people overseas. This puts a bad reputation on the name of the business as an Australian business will cut jobs from Australian workers and supple foreign workers with jobs. Families and friends of these workers may feel resentment towards Qantas and choose to travel with another airline instead resulting in a loss of customers. This strategy has been effective in reducing cost but has resulted in a reduction of quality and safety and led to a decreased business reputation resulting in a loss of customers and stakeholders.

Outsourcing, or the practice of Corporations expanding their influence, and labor force to foreign countries needs to stop. As it causes the decline of developed nations labor forces, does nothing to fix inequality in underdeveloped nations, has adverse affects on the economies of developed nations, and outsourcing allows corporations to cause extensive harm the the world, and it’s enviornment. If the practice of globalization were ended, it would improve the lives of many people in developed nations, the policies that affect them, and ultimately the world.

In 1936 congress put all commercial airlines under the Railway Labor Act. Since then, there was a period of 42 years under economic regulation where the government oversaw labor relations. Since deregulation, the goals of collective bargaining have not changed much, nor have the objectives of management and labor unions. (Wensveen, 2011, p. 422)

You may have been asked if your job is next with the recent outbreak of shipping American jobs overseas. Lately, all of the corporate talk is about outsourcing and how it’s helping American companies grow, but what is not talked about is how it’s going to effect the American economy in the next few years and what should be done to stop it. Outsourcing is a modern plague that is killing the American dream. Its long-term effect is catastrophically damaging to the American economy and Americans need to step up their educational expectations, skill sets and motivation if they are to keep that long-fought for dream alive.

In airline industry there are three major suppliers; jet-fuel providers, airplane manufactures and labor. Due to the current economic situation and ever-increasing fuel price, the position of the airline industry to its jet-fuel suppliers is worse. While the power of jet-fuel suppliers is stronger, the influence of airplane manufacture and labor on the airline

• Provide background on the global industry • Present a regional analysis • Discuss current and future evolvement of the industry (trends) • Discuss challenges and strategies impacting the industry • Discuss the new breed of airlines • Discuss why airlines fail and how to achieve success

I am suing American Airlines to collect 15% of the total revenue accumulated and collected by AA form using my revenue generating idea and system of collecting extended hold fee from AA customers in need of more time to purchase their tickets while locking-in the price of the ticket offered at the time of reservation for up to 7 days. AA collected the fees from this concept without license or prior permission and agreements, and under implied contract not to use my revenue generating idea without prior license and permission to use my revenue generating idea and system, I am the owner and founder of the concept of offering extended hold fees for customers that in need of more time than the initial free 24 hours offered by the airline, thus using my system

In recent years, full service airlines are facing different challenges including the increasing competition, market shifts and the change of customer needs. This essay is to analysis the three main difficulties faced by full service airline and suggests some improvements.

After six consecutive years of profitability, the U.S airline industry was descended into a downward spiral. The number of passengers flying dropped from 56 million in August 2001 to 30 million in September with no passengers for two days after the attacks (Poling). It took three years for the airlines to reach the 56 million passenger mark again. The impact on the travel industry, specifically the airlines, was more severe than in other areas.

The Airline industry has experienced continual problems with rising costs with both fuel and maintenance which has caused them to increase their fees to the consumers to pay for those rising costs. This paper will help explain what an airline such as Delta does to help alleviate such costs without forcing its consumers to flip the bill through high fees that consist of tickets, baggage fees and food. The costs of doing business in aviation today have spiraled out of control making it very expensive for both airlines and the

Operations in international and/or foreign countries will create significant operational challenges. Differences in governing laws and regulations for the airlines industry, business, and employee relations will become challenging. Interpretation and intent for various laws can and will provide ambiguity that must be dealt with. Research shows that various international airlines continue to be plagued by high costs and poor service (Ramamurti & Sarathy, 2007).

In the airline markets, SIA has strong competition from not only Asia areas, airlines but also many international brand airlines such as United Airlines and American airlines (best airlines in American for 2012). Although SIA has a great brand reputation with global markets, but it also continually develops the new equipment in the busy airline industry to provide the new attractive point for increasing the customer satisfaction.

Literature reveals that the globalisation of the airline industry has resulted in easier accessibility across international borders. This has greatly benefited the tourism industries economic sector with a rise of foreign tourists and an increase in global competition (Dwyer, 2015). However the negative effects on the environment are vast with climate change has become a global problem. A swish study proved that out of the countries examined, 50-85% of tourism based emissions are as a result of air transport and therefore if the tourism industry is to reduce emissions, it can only be achieved through a major decrease in these environmentally destructive emissions caused by aviation (Perch-Nielsen et al, 2010).