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AirTransport World Editorial

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enigma

good ol boy
Joined
Nov 26, 2001
Posts
2,279
I posted this on the general board, but it isn't getting the read it deserves. Men, this is from a MANAGEMENT magazine. Let's hope that managers read it.

enigma




http://www.atwonline.com/magazine/a...?articleID=1255

Editorial: Stop the Machine

Last December, US Airways and Comair each suffered near-simultaneous operational meltdowns over the Christmas holiday period, resulting in the cancellation of many hundreds of flights and the inconveniencing of nearly three quarters of a million passengers.

But there the similarity ends. Comair's problems were owing to an unfortunate confluence of two of commercial aviation's biggest dragons: Weather and computer problems. A severe ice storm at its Cincinnati hub literally froze aircraft to the tarmac. Then as Comair was recovering, its flightcrew scheduling system shut down due to a software glitch that arguably was unforeseeable by the airline.

By Perry Flint
Air Transport World, April 2005, p.5

At US Airways, the problems largely were manmade, as is clear in the detailed report commissioned by US Transportation Secretary Norman Mineta following both events. Keenly aware of personnel shortages among the flight attendant and ramp agent work groups, US Airways officials knew they were rolling the dice well before piles of unchecked luggage started reaching the ceiling in Philadelphia. To have flown the published schedule would have required near-perfect weather and operating conditions and better-than-average attendance from a worn down, depleted and resentful staff that was (and still is) living through a second bankruptcy reorganization. As it was, a bit of typical East Coast weather was all it took to set back the company's marketing efforts by a year or so.

Leaders of the airline deserve no credit for the fact that as the situation unfolded, their first reaction was to blame union sickouts when no doubt they had been warned by lower downs in the management food chain that the system was held together with duct tape. Yet their response may hint at a deeper and more systemic problem confronting other legacy carriers-not just those engaged in a fight for survival.Quite simply, executives may have chosen to disbelieve what they were being told because it conflicted with what they wanted to hear.

The fact is that, for better or worse, fewer and fewer senior managers come up through the ranks of their own or other airlines. If they are too focused on yesterday's closing price and next week's P&L, they are in danger of isolating themselves from those on the ground level who understand what it takes to make an aircraft depart the gate ontime with the correct number of passengers and bags. Furthermore, they may have little emotional or intellectual connection to those frontline supervisors and lower and mid-tier managers who remain after years of layoffs and pay cuts. Yet it is those individuals who form the core of any airline's operation. Today, many are tired and they are supervising workers who often are just as worn out, and embittered to boot.

Last year was the first in which airline traffic exceeded the record level set in 2000, but US airlines-whose operational performance is monitored more easily than that of their foreign counterparts thanks to DOT's monthly reports-also experienced a noticeable deterioration in service standards. US Airways' December collapse was an extreme situation, but the data form a trend line that looks especially disturbing heading into the peak summer travel months.

In the Japanese kaizen style of production, any worker may bring the assembly line to a halt if he or she sees a problem developing. An airline can't cease flying every time a bag gets misplaced or a crew is out of position, but there needs to be a mechanism through which the frontline supervisors can say "stop" to the unworkable schedule being put together 12 floors above-before the crisis occurs.

It is tempting to treat airline breakdowns as isolated incidents rather than teachable moments, but this attitude needs to change because things such as the European Union's new passenger rights policy and FAA's intervention at Chicago O'Hare don't always occur from happenstance. Sometimes they are the result of big mistakes, such as those made by US Airways in December, British Airways in the summers of 2003 and 2004 and Northwest Airlines in January 1999.

Today, after four years of layoffs and belt-tightening, the system is running flat-out, pedal to the metal, with nothing left in reserve to cope with the occasional hitch in the machine. And in such a situation it is vital that the CEO in the driver's seat is keyed to what is going on under the hood.
 
As stated in the same magazine last year "Airline management is a endangered species, no one wants to do it". Great managers and leaders are not coming to the airline business, there is too much reward in other sectors of the American economy. The obstacles are nearly overwhelming to include relentless competition, gov’t regulation, tempestuous union relationships, and extremely small profit margins at even the profitable carriers. So much is outside of the control of management. Who wants to do it except for a short-term ride?
 
gotta feel sorry for them managers huh!

pilotyip said:
As stated in the same magazine last year "Airline management is a endangered species, no one wants to do it". Great managers and leaders are not coming to the airline business, there is too much reward in other sectors of the American economy. The obstacles are nearly overwhelming to include relentless competition, gov’t regulation, tempestuous union relationships, and extremely small profit margins at even the profitable carriers. So much is outside of the control of management. Who wants to do it except for a short-term ride?

Poor babys. Maybe if we increased their compensation and retention bonuses regardless of performance, gave them 22 years retirement credit the day they set foot on property and pass benefits for life maybe then (and only then) would this industry be able to attract the high calibre of "executive talent" it needs to turn things around.

But remember, the huge compensation must be regardless of performance or results. And don't forget to throw in a token "base pay" that's a small fraction of their overall compensation so they can reduce it and look like they are sharing the pain.

Oh what will we do if we can't attract the same level of executive talent that we've had the last few rounds of leadership everywhere? We will really be screwed then!
 
pilotyip said:
As stated in the same magazine last year "Airline management is a endangered species, no one wants to do it". Great managers and leaders are not coming to the airline business, there is too much reward in other sectors of the American economy. The obstacles are nearly overwhelming to include relentless competition, gov’t regulation, tempestuous union relationships, and extremely small profit margins at even the profitable carriers. So much is outside of the control of management. Who wants to do it except for a short-term ride?

YIP, you make a good point. However, I wonder if there really is a shortage of good top managers in this country? Or, do we have a shortage of managers who are actually willing to work hard in a difficult environment?

Or do we have a shortage of top managers who come with the "right" credentials? You know, MBA's from the elite schools. In other words, are there plenty of good people available, but the elitist, incestuous boards of directors don't consider them worthy?

just a thought

enigma
 
Good point enigma, to get those jobs you have to have connections at the highest levels of the banking and finance industry. Your buddies from Harvard, Stanford, etc. give you first name access the big picture of american industry. Inside good people are unknowns outside of the company, makes it tuff for them.
 
With David Neelman and and Dave Barger at the helm we dont have to worry about this crap. The only thing that is scary is when they decide to move on for a new challenge or in Barger's case more money.
 
enigma said:
http://www.atwonline.com/magazine/a...?articleID=1255

Furthermore, they may have little emotional or intellectual connection to those frontline supervisors and lower and mid-tier managers who remain after years of layoffs and pay cuts.

That statement is all too true. There is a disconnect (whether by choice or ignorance) between the ivory tower and the field and there doesn't necessarily have to be any layoffs or pay cuts involved. No different than a politician and their constituents or Hollywood and the real world.
 
a320drivr said:
With David Neelman and and Dave Barger at the helm we dont have to worry about this crap. The only thing that is scary is when they decide to move on for a new challenge or in Barger's case more money.

Boy,that Blue Kool Aid sure has some kick to it....:rolleyes:



PHXFLYR:cool:
 

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