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Unfriendly Skies - Part 2

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snow-back

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Despite the additions, US Airways Chief Executive Doug Parker says the low-fare market leaves airlines with little choice but to operate lean staffs. "You can't get the passengers to pay more so the airlines can staff another flight attendant. It's the reality of the business and what the consumer has told us they want," he said in an interview.
For decades, airline jobs were coveted, and many of the largest carriers attracted multiple generations of the same families drawn to the glamour of aviation. The pay was better than comparable jobs in other fields, the benefits were generous, and travel passes allowed workers to fly for little or no money.
Now, snarling passengers and trimmed pay have taken away much of the industry's allure. And airline workers have a harder time taking an inexpensive vacation: With planes full of paying passengers, they're often unable to grab a free seat for themselves.
Even the more financially successful budget airlines are doing more with fewer people. "We're trying to grow the company without adding head count," says Greg Wells, senior vice president of operations for Southwest Airlines. When Southwest was faced with the ramp-worker injuries at Chicago's Midway Airport over Christmas, the airline muddled through by asking for or imposing overtime and using fewer gates so there would be enough manpower to cover each one. It is studying why there were so many injuries.
Black Eye
JetBlue Airways Corp. got a huge black eye when it mishandled a Valentine's Day ice storm in New York, stranding customers in airports and on planes for hours at a time. David Neeleman, the founder and chief executive officer, days later admitted there "are some areas of the company...that needed to be beefed up and didn't keep pace with the growth" of the discount airline. Last week Mr. Neeleman stepped down as CEO.
While unions criticize what they call excessive staffing cuts, they're not happy about one response to the problem: outsourcing work. A few years ago, Northwest hired lower-wage "skycaps" to help check in passengers inside the terminal, but it had to halt the practice after the union argued successfully that the skycaps violated contract terms governing customer-service agents.
Last month the union representing United's mechanics filed a grievance saying the airline is outsourcing a higher percentage of maintenance spending than the union's contract allows. United says it is within the contractual limit.
Carefully negotiated union pay scales also can make it difficult to raise wages for hard-to-fill jobs. Stephen Gordon, president of the International Association of Machinists district that represents Northwest ground workers, says Northwest was having trouble recruiting ramp workers and wanted to raise starting pay to $10 an hour from $9. The union's reply: If you do that, you need to give everyone a $1-an-hour raise. The wages stayed the same.
When outsourcing does happen, the process isn't always smooth. In 2005, Alaska Air Group Inc.'s Alaska Airlines outsourced ramp jobs in Seattle to an outside firm. The transition was marked by misplaced luggage, late flights and an incident in which a damaged aircraft had to make an emergency landing. The airline and the outside firm, John Menzies PLC, say the problems have been fixed.
Overall, airline and government officials say tighter staffing doesn't represent a threat to passenger safety. A spokeswoman for the Federal Aviation Administration says air travel "has never been safer."
Ground operations are among the most acutely affected by the airlines' cutbacks. Troy Bacon, a ramp agent in Atlanta for Delta Air Lines Inc., says he has seen a shortage of drivers to transport luggage at the international terminal during weekends, which contributes to baggage delays. "Sometimes, they may be 10 minutes late because they're so undermanned," though the company has been hiring, he said. Delta says it recently adjusted staffing to address problems like the one Mr. Bacon describes. Mr. Bacon says his pay fell nearly 20% as Delta reorganized in bankruptcy court, to $14.07 an hour from $17.28, although he has gained some of that back recently.
Mr. Gordon of the machinists union said Northwest is having difficulty hiring and retaining qualified employees in expensive cities such as Boston and New York. In Minneapolis, where the airline has a hub, "you can hire on the ramp for $9 an hour" and work bad shifts out in the cold weather, or "you can work inside a Target for $11," he said. Northwest confirms that it is having hiring difficulties in some places.
Customer-Service Cuts
In Dallas, Southwest Airlines had 140 customer-service agents before 9/11, compared with about 90 now, says Debbie Aven, an official with a part of Mr. Gordon's union that represents these workers. (Southwest says the pre-9/11 figure was closer to 120.) The company now sometimes assigns one or two agents to handle multiple gates, which can cause problems when a flight is late or oversold, says Ms. Aven.
Southwest says it doesn't think the new staffing arrangement has worsened service for passengers, although it won't roll it out fully until it introduces technology that will help rebook passengers automatically when there are storms or other disruptions.
Yesterday, the University of Michigan released its American Customer Satisfaction Index. U.S. airlines scored 63 out of a possible 100, their lowest score in seven years and two points lower than last year. Airlines fared worse, by nine points, than the federal government and even lagged by two points the Internal Revenue Service.
American's vice president of customer-services planning, Marilyn DeVoe, says the airline's overall staffing is adequate. "Would we like to have more manpower?" she asks. "I would. But it just isn't prudent as a business."
Write to Melanie Trottman at [email protected] and Susan Carey at [email protected]
 
I copied and pasted this with part 1 so that there's only one thread.

I'll leave it up to the mods to decide whether or not to lock this one.
 
Not a bad article, but they missed the point.

Dirt cheap tickets.

When you cut fares to the bone to subsidize the travelling public's flying, EVERYTHING gets cut, not just the cheap crap like pillows and blankets.

What REALLY gets cut are the expensive things....extra aircraft, extra gates, extra crews, spare parts and competent help. The things that make or break an airline operation on other-than-VFR days.

Every person I come across that complains about airline service I tell "tough sh!t, you brought it on yourself"

Nu
 
Management needs more pay to stay!!!!!!!

Management is still getting rich off the glam airline jobs.

CAL manager just got $150,000+ stock bonus. And the new hire in another thread got a 72 hours of pay instead of 76 as promised.



AP
Continental Director Exercises Options
Thursday May 17, 10:08 am ET
Continental Director Charles Yamarone Exercises Options for 5,000 Shares
NEW YORK (AP) -- A director of air carrier Continental Airlines Inc. exercised options for 5,000 shares of common stock, according to a Securities and Exchange Commission filing.In a Form 4 filed with the SEC Wednesday, Charles Yamarone reported he exercised the options Tuesday for $34.75 apiece and then sold all 5,000 of them on the same day for $37.30 apiece.
Insiders file Form 4s with the SEC to report transactions in their companies' shares. Open market purchases and sales must be reported within two business days of the transaction.
Continental is based in Houston, Texas.
 
NWA mangement got rich in BK!!!!

NWA management forced 50% plus pay cuts and got a bonus for doing it.

And all the union does is say that is not right years after the fact. Unions working for management.


AP
Unions Oppose Northwest Exec Pay Plan
Thursday May 17, 7:05 pm ET
Unions Oppose Northwest Airlines Executive Pay Plan; Judge Delays Ruling on Bankruptcy Plan
NEW YORK (AP) -- Labor unions opposed Northwest Airlines Corp.'s bankruptcy reorganization plan Thursday, arguing that a part of the plan that awards nearly $300 million in stock and options to top managers shows a lack of business judgment.[SIZE=-2]ADVERTISEMENT[/SIZE]
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U.S. Bankruptcy Judge Allan Gropper heard the arguments in a hearing on whether the company's restructuring plan should be approved. Northwest expects to emerge from Chapter 11 protection next month if the plan is approved.
Gropper said he would rule on the plan Friday.
Flight attendants, pilots and other workers have taken pay cuts as part of the company's 20-month reorganization, and lawyers said the stock awards were unfair because managers were not sharing in the sacrifices made by workers.
"This award goes beyond the obscene -- it is so extraordinarily large," Association of Flight Attendants lawyer Robert Clayman said. "Even in the perverse world of executive compensation, it cannot withstand scrutiny."
Union lawyers urged Gropper to change the management equity plan to give more to union-represented employees before he considered approving the company's overall restructuring plan.
Also Thursday, an investigator's report was released that said Northwest made reasonable efforts to value itself and entertain merger possibilities late last year.
The examiner appointed in Northwest's bankruptcy case did say the airline didn't appear to assign a value to its so-called "golden share" in Continental Airlines Inc. A golden share in effect gives Northwest veto power over any Continental merger. Shareholders who fought some elements of Northwest's reorganization claimed it should be worth $550 million, the examiner's report said.
Examiner Richard Nevins wrote that he "believes the Golden Share to be unique and valuable."
Gropper appointed Nevins after a group of shareholders claimed that Northwest was purposely undervaluing itself to keep shareholders from receiving anything in its reorganization, and that it had failed to aggressively seek merger possibilities.
Late last year, a hostile takeover offer by US Airways Group Inc. for Delta Air Lines Inc. prompted speculation that a round of airline mergers might be about to begin. However, Delta fought off the US Airways offer, and no other U.S. airline mergers have taken place. Delta has acknowledged considering a "business combination" with Northwest late last year.
Northwest agreed to pay up to $5 million in legal bills for the shareholder group after they all saw a draft of the examiner's report earlier this month. A redacted copy filed Thursday was the first time any of the report became publicly available. The redacted portions include about five pages, beginning with a section talking about merger possibilities.
Northwest's unsecured creditors are being paid in shares in the reorganized airline. They are also being offered the chance to buy additional shares for $27 each, but Nevins' report said only about 10 percent of them have chosen to do so. Northwest's old shares will be canceled, and those shareholders will receive nothing when it emerges from bankruptcy protection.
In bankruptcy court Thursday, Northwest lawyer Bruce Zirinsky said the company's board met late last month to discuss a possible raise in directors' compensation that the new board could adopt. The flight attendants' lawyer, Clayman, said in court that directors' pay is proposed to rise to $200,000 from $46,000 a year.
 

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