Airlines' Cost Cutting Measures

Paper Summary:

This paper discusses the effects of the personnel cost-cutting measures employed by major airlines in the United States and their relationship to aircraft safety. The research focuses on four factors - employee layoffs, increase on employee workload, cutting employee benefits and cutting employee training. The paper presents a survey on aviation pilots at American Airlines (AA).

Table of Contents:
Abstract
Introduction
Background of the Problem
Statement of the Problem
Limitations
Delimitations
Definition of Terms
Acronyms
II Review of Related Literature Hypothesis
Introduction
Employee Benefits Cost Reduction and Wages Cutback
Employee Lay Offs
Increase in Employee Workload
Employee Training
Commercial Aircraft Safety
III Research Methodology
Introduction
Research Design
Research Model
Survey Population
Sources of Data
The Data Gathering Instrument
Pilot Study
Instrument Pretest
Distribution Method
Instrument Reliability
Instrument Validity
IV Results
Introduction
Demographics
Pilot's Awareness of Company Decision and Policies
Pilot's Awareness about AA's Cost Cutting Measures
Pilot's Perspective on the Effects of Cost Cutting
Measures of AA to Commercial Aircraft Safety
V Discussion
Introduction
Pilot's Awareness of company Decision and Policies
Pilot's Awareness about AA's Cost Cutting Measures
Pilot's Perspective on the Effects of Cost Cutting
Measures of AA to Commercial Aircraft Safety
Summary
VI Conclusion
VII Recommendations
Appendices

From the Paper:

"Since, 1998 the Government Accountability Office (2004) (GAO) of the United States had reported that majority of the leading airline industries have a difficulty of acquiring revenue and profit increase because of the growth of Low Cost Airlines (LCA) The proliferation of Low Cost Airlines has caused a strict competition in terms of domestic market share due to the relatively low prices that were offered and the relatively low cost cutting measures of LCA. Hence, it is reported by GAO (2004) that the operation costs of LCA have even increased to $1 Billion or 10% of its total operation costs. In effect of this, the research inferred that such an effect had a significant impact in terms of how passengers in general compare and view LCA to Big Airlines."

Sample of Sources Used:

• Comerford M. (2005, January 28). Held Down Rising Oil Prices and Falling Airfares Are Contributing to Billions of Dollars in Losses for the Troubled Airline Industry, Which Shows Few Signs of Escaping Its Dilemma Anytime Soon. Daily Herald, pp. C09
• Delta and NorthWest Airlines Declare Bankurptcy (2005). Retrieved February 20, 2007 from http://www.wsws.org/articles/2005/sep2005/bank-s15.shtml
• DeVries, J. (2005). Airline Layoffs, Worker Concessions. Retrieved February 20, 2007 from http://zmag.org/Zmag/Articles/jan02freeze.htm.
• Field D (1995, Febraury 27). Crashes Have Crews and Commuters Considering Safety. Insight on the News, (11), 9, 31.
• Hunter, D (2001). Retrospective and Prospective Validity of Aircraft Accident Risk. Human Factors, (43), 4, 509.

More papers on Airlines' Cost Cutting Measures:

• Term Paper # 38947 : " Security and Cost- Cutting Measures"
• Analytical Essay # 113227 : "Airlines and Rising Fuel Prices"
• Analytical Essay # 8359 : "Security Costs For Airlines Post 9/11"

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