The Impact Of Outsourcing On The Airline Industry

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This report is to provide an analysis of the effect of outsourcing in the airline industry. In the airlines, outsourcing is very common especially at small cities and international locations. It has its advantages and disadvantage. It helps to reduce costs such as payroll, benefits and any other related costs. Also, it has it disadvantage such as the quality of the work could be affected. I also will look into the process for an airline beginning to outsource a location (or stations) that was not previously outsourced. An advantage of outsourcing a station is that the airline can save a lot money. As the contactor takes over, they will assume responsibility of hiring, training, paying any related cost for that individual. Also, the airline is no longer responsible to follow the union contract between the employee and contractor. The disadvantage of outsourcing is that quality of work produced by the employee is highly affected. Lots of these employee have a notion that they are high expendable and can be replaced easily. Mix that thought process with low pay and little to no benefits and one might get an employee that will not do a quality job. Some stations has already been outsourced could be replaced by another company or contract. This report will briefly look into how that transition could affect the overall operations of that station in a positive and negative matter. I will refer this a contract transition. During this transition, operations at that particular
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