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Heavy Weather At American Airlines - College Essay

Heavy Weather At American Airlines



Business Week
Heavy Weather at American
Jan.27 1997
pg 32

There is a big shake up at American Airlines. The pilots want more
money but management has already spent it. Another strike you say. Yip, looks
like it. The chief executive of American Airlines was stunned when on January
8, by an overwhelming vote, pilots rejected a tentative contract. Pilots then
got a message from the company president saying "For the first time in many
years, we fear for the future of our company."
The reason that this strike could spell disaster for one of the leading
airlines in the world is the rather large order of new aircraft American ordered
from Boeing. American says that having to pay higher ...

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Boeing back in November when it was first voted on.
It seems as though instead of purchasing new aircraft the pilots wanted a pay
increase. What the pilots want is a pay increase of 11% over the next four
years. What the have been offered is a 5% increase. The argument that the
pilots have put forward is the fact that their offer does not even keep up with
inflation. It looks as though a strike would be very unlikely because of the
amount of money involved, somewhere around fifty million a day would be lost by
American. That big of a loss could be very detrimental to any company.
What can management do with a dilemma like this? It seem that they
departed without knowing where they were going to land. They should have made
sure there would not have been an uprising in any part of the company before the
took measures as drastic as ordering six-billion dollars in new aircraft. It
looks to me like there needs to be better communication between all facets of
management in ...

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PAPER DETAILS
Added: 9/23/2004 01:28:43 PM
Category: Economics
Type: Premium Paper
Words: 586
Pages: 3

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