Heavy Weather At American Airlines :: essays research papers

Heavy hold at American AirlinesBusiness WeekHeavy Weather at AmericanJan.27 1997pg 32     There is a big shake up at American Airlines. The pilots want more gold but focussing has already spent it. Another strike you say. Yip, lookslike it. The chief executive director of American Airlines was stunned when on January8, by an overwhelming vote, pilots rejected a tentative contract. Pilots thengot a message from the comp whatever president expression "For the first time in manyyears, we fear for the future of our company."     The priming that this strike could spell disaster for one of the leadingairlines in the military man is the rather large instal of new aircraft American orderedfrom Boeing. American says that having to throw higher(prenominal) pilot salaries and buy newaircraft makes it an uneconomical investment, in other words they can not doboth and simmer down stay in business. A strike could even threaten a purposedal liance with British Air guidances. American in not alone though. With painsprofits on the constant rise, employees of other airlines are pushing for higherpay also, but undeniably American is in the worst state of affairs right now.     It looks to me like the pilots were not very(prenominal) happy with the decision to grease ones palms new aircraft from Boeing back in November when it was first voted on.It seems as though instead of purchasing new aircraft the pilots wanted a payincrease. What the pilots want is a pay increase of 11% over the next fouryears. What the fill been offered is a 5% increase. The argument that thepilots have put forward is the occurrence that their offer does not even keep up withinflation. It looks as though a strike would be very unlikely because of theamount of money involved, somewhere around fifty million a day would be lost byAmerican. That big of a loss could be very detrimental to any company.     What can management do with a quandary like this? It seem that theydeparted without knowing where they were going to land. They should have dosure there would not have been an uprising in any part of the company before thetook measures as drastic as parliamentary procedure six-billion dollars in new aircraft. Itlooks to me like there needs to be transgress communication between all facets ofmanagement in this company.     The only way out of this mess that I can see is to reduce the order fromBoeing so that they can afford to give the pilots there precious pay increases.This could cause more problems depending on how lenient the contract between