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Airline labor-management conflict - Case Study Example

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Summary
Ott James in his article titled “What if Delta goes down?” delves on the general impacts of the cancellation of the Air Line Pilots Association contract with Delta Airlines, in the event that both sides fail to reach a consensus, forcing the airline to dissolve. Ott (2006)…
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Airline labor-management conflict
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Download file to see previous pages Therefore, he was balanced in his assessment of the situation. Ott (2006) had clearly pointed out that the fate of the airline rested with the management, ALPA representatives, the industrial court and the team of arbitrators who are mandated to manage the ALPA contract in the event that both sides in the conflict failed to reach an amicable solution.
According to Ott (2006), the collapse of Delta would have created a big gap in the America’s aviation industry, leaving the remaining players to heighten their competition and inherit Delta customers and clientele base. A consensus on the issue of picketing pilots who were protesting pay cuts would stem the fallout following the airline’s move to control labor expenditures.
The article is extensive in the sense that it touches on the future of would-be pilots who may start to wonder how they will survive in an industry coupled with risks and lower incomes. Factually, such cuts could have had negative repercussions on the then aviators, other professionals and stakeholders in the industry as well as subsequent pilots.
Ott (2006) had painted out a clear picture of the short-term and long-term impacts of the likely collapse of Delta, suggesting that an estimated 50,000 jobs would be lost immediately. And with the exit of such a significant population of human resources and profitable assets, key Delta hubs such as Jackson International Airport would be reduced to idleness due to under capacity. And whereas other busy hubs that are dominated by Delta such as Salt Lake City and Cincinnati would face a similar fate, the airline’s rivals in the market like Continental Airlines would struggle to provide alternative air transport mechanisms.
Ott (2006) had foreseen that the failure of Delta’s rivals to fit in its shoes would reduce the former busy hubs to hubs for more local flights. A complete reversion to the current bee-hive of activity in those hubs from fewer regional ...Download file to see next pagesRead More
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