TIME: Is American the Worst-Managed Airline in America?
Is American the Worst-Managed Airline in America?
By Bill Saporito | @bilsap | February 6, 2012
Members of the Transport Workers Union (TWU) were scheduled to vote on a new contract with American Airlines, or AA, this December that would have lowered the airlines cost and outsourced hundreds of jobs that werent directly related to aircraft maintenance. They never got the chance because American instead filed for bankruptcy. On Wednesday AA announced it planned to outsource just about all of them 4,600 mechanics jobs are going, along with 4,200 ground-service positions, 2,300 flight attendants and 400 pilots. About 15% of Americans work force is getting a one-way ticket to Termination, Texas thank you for dying with us today.
Of the cuts, the latter two figures make the most sense: American isnt likely to be needing as many flight crews by the time its bankruptcy is settled because passengers are going to be bailing. Flying is horrible to begin with, and flying an airline run by a group of really angry people isnt likely going to enhance the service level.
American was the last of the majors to file for bankruptcy some have gone through the Chapter 11 bath twice but its a standout for another reason. Over the long term, it has arguably been the worst-managed major airline perhaps the worst-managed service company thats still in business. Over the past decade American has lost some $11 billion, which is about 15% of the industrys total losses over the history of the entire industry. Thats quite an accomplishment.
AA is an airline that always seems to be mad at someone: employees, competitors, passengers, governments, OPEC. The company has been at war with its unions for years. Granted, the TWU is a rough crew, and the pilots are no picnic either. But both groups already negotiated givebacks and the TWU was on the verge of coughing up some more. Blaming the unions, which is basically what management is doing, misses the point. As a very smart CEO of a unionized company said to me years ago: If you arent getting along with your union workforce, dont call it a labor problem because its not. Its a management problem. And American has managed its workforce badly for years. ...................(more)
The complete piece is at: http://business.time.com/2012/02/06/is-american-the-worst-managed-airline-in-america/#ixzz1lbefx62C
DrDan
(20,411 posts)CanonRay
(14,104 posts)What more proof do you need?
Ichingcarpenter
(36,988 posts)said it was cost saving to hire them in their memo....
doc03
(35,348 posts)was with Air Tran, from what I saw it shouldn't be hard to beat them.
Loge23
(3,922 posts)The usually repulsive Mr. Stein did a piece on CBS Sunday AM in which he lamented the seemingly imminent layoff of 18,000 A.A. employees against the also imminent insane cash windfall of a few of the Facebook kids - including the guy who painted murals on the walls in exchange for stock: he stands to make about $10M.
We can go on about economic inequity in this country and rightfully so, but it's the values that are hopelessly out of whack.
Billions for a gossip, game, and ad site. Layoffs for hard-workers.
just1voice
(1,362 posts)and I didn't read the link to Time.
ProgressiveProfessor
(22,144 posts)Or Buffalo if you are Canadian. At least that is what cable TV teaches you.