Monday, May 6, 2019

Trans World Airlines Flight Attendance Case Study

Trans manhood Airlines Flight Attendance - Case Study ExampleThe strike happened at a time when the air passage business was highly competitive (Wallace, n.d.). All air hoses were aiming at making huge pull in margins. The industry had exit deregulated. This case study is a summary of the issues that characterized the strike. It also gives an opinion on the subject supporting it with standardized occurrences and common practice. It also makes recommendations on the best management to solve predicaments similar to the one faced by the IFFA and TWA. The recommendations analyze the most favorable solutions to parties embroiled in similar trade disputes.Icahn was faced with the need to rationalise on be to bolster TWAs profits. One way of doing this was by reducing labor costs. It was the easiest way out owing to the fact that other management teams apply it when faced with situations that demand to lower operative costs. Icahn required wage concessions and benefit costs amounti ng to about 300 million U.S. dollars. This would reduce labor costs and expenses before tax by 20% and 8% respectively. The Air Line Pilots standstill (ALPA) and the International Association of Machinists and Aerospace Workers (IAM) were agreeable.The two groups granted Icahn concessions worth $100 million and $50 million respectively, the consideration being profit sharing and worker stock-ownership plans. Icahn was expected to get the remainder from IFFA (Wallace). ALPA and IAM expected the same. If not, he would have to sell the airline because there were some interested parties. IFFAs leader, Victoria Frankovich, had her reservations about the wage concessions. This was coupled with Icahns demands that the public life attendants would be required to put more hours to increase the airlines productivity and competitiveness. It was intimated that the airline pay a lot more in wages as compared to other airlines with whom it competed thus justifying these demands.

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