Operating a successful airline means balancing the needs of customers and investors in a manner that capitalizes on the company’s most valuable assets – the knowledge and creativity of the American Airlines workforce.
• Customers expect low fares and a high-quality product.
• Investors have higher expectations for American than ever before, and without them, the
company can’t reinvest in its future and grow.
• Employees want to know the company cares about them and that there is a direct link
between the company’s performance and their employment opportunities and
professional growth.
In order to meet the demands of these varied stakeholders, American must be best-in-class – better than its competitors in all aspects of the business. Operational simplicity and competitive wages are obviously a large part of any successful business enterprise.
But, another important element is productivity. To be successful, American must be more flexible, more efficient, and most importantly, more productive than the competition. That is why American hopes to work together with its unions to improve productivity in ways that enable smarter and more efficient work. In fact, efforts already are underway to improve productivity across all aspects of the operation, from scheduling to air traffic control issues to management.
During contract negotiations with each union, American plans to explore the full range of issues that drive productivity, including work rules, scheduling, staffing and compensation. Making the most effective use of the workforce and fleet is fundamental to American’s ability to compete and improve its financial foundation.
Resources:
Bureau of Labor Statistics
Dallas Fed Report on Productivity Gains in Service Industries
Hunting for Productivity Gains, Aviation Week
