Pilot Union Reject Tentative Pact with American Airlines: Article Analysis Essay

Introduction

The article "Pilot Union Reject Tentative Pact with American Airlines" by Susan Carey gives an account of deprivations faced by pilots and flight attendants under AMR Corporation. AMR Corp is a commercial aviation business and a parent company to several American airlines. Over the years predicaments in the corporation have intensified to the extent of affecting the levels of elite status. For instance, the value of silver, the lowest tier and a frequent-flier program has dropped, and travelers have been complaining that some of the perks accrued to the program have been withdrawn (Carey, 2012). Initially, in their effort to resolve the menace, AMR Corp filed for Chapter 11 bankruptcy to legitimately carry on with its reorganization plan. However, this was against their pilots, flight attendants and Transport Workers Union (TWU) who had earlier rejected a concessionary six-year contract proposal from the company.

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According to Scott McCartney, voting against the offered contract gave the United States Bankruptcy Judge supremacy to retract pilots' labor agreement and impose more severe terms on the group. Although the Allied Pilots Association (APA) rejected the deal, it had addressed some crucial complaints among workers such as furlough protection and equality in reorganizing AMR. Nevertheless, this was not the first time workers under TWU were rejecting similar deals. In this occasion, they were against AMR seeking court protection and advocated for a merger with the United States Airways Group Inc who had offered them better contract terms (Carey, 2012). According to Carey American pilots have created a labor uncertainty hurting ability of AMR to raise capital. The employees might also lose protection and might suffer bargaining for better terms if the court rules against their current agreement.

Contrary to the article, employee retention and attracting top talents in an organization should be a priority for the company. As the labor market continues to improve competition for top talent in the labor market keeps intensifying. Offering wage hikes and sustainable working conditions are some of the strategies leading companies to embark on to remain competitive. The United States Airways Group Inc was using this ideology not only to pursue the AMR Corp for the merger but also to appeal to the larger airlines' employees to support their strategy. Subsequently, AMR Corp could not address its problems by imposing a concessionary agreement to its workers.

Likewise, the actual travel status value of airline loyalty depends primarily on the type of traveler. For instance, light travelers are not likely to travel often and therefore are not concerned with flier programs. When it comes to selecting elite airline status, several factors are taken into consideration by the majority of travelers. Lounge access, fee waivers, and upgrades are among the valuable perks that can make a stressful travel experience smooth and gratifying. In recent years, loyalty programs have received significant refurbishments. According to the article, AMR corp intended to increase the spending minimum value to achieve elite status and to take away some incentives offered to travelers. Contrary, this would make travelers consider mileage programs presented by international carriers rather than withstanding minor benefits. As a result, some of this decisions keep revoking potential customers and therefore the company limits its revenue.

Conclusion

In conclusion, the frequent flier meant to attract customers to American airlines has been fading away as some of the measures taken to revive the airlines are making them less accessible to occasional travelers. Most people value decent deals over swanky facilities. Therefore, the strategy adopted by AMR Corporation to reduce its costs would eventually hurt the airlines rather than reviving its fading reputation. Lastly, turning to United States Bankruptcy Court, this would not resolve the menace in the industry but strive to satisfy employee and travelers would have a productive and lasting impact.

References

Carey, S. (2012). Pilots Union Rejects Tentative Pact With American Airlines. WSJ. Retrieved from https://www.wsj.com/articles/SB10000872396390443991704577577331575899376