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? Does Bigger Really Mean Better When looking at the aviation industry? s desire to merge into one mecca airline, a good example is with United Airlines and US Airways, many consumers forget about those who are actually working for those airlines? Consumers beware further consolidation could lead to higher prices and poorer service? (Marks). Sure bringing together two ideas to make the route system of one particular airline vaster, but the effects on the employees can be very stressful and sometime tragic. Regardless of whos buying who, or whos becoming who, all possible efforts are made to keep all the employees of both still working.
However, due to the overload on personnel many, especially those with less security, are put on reserve or followed. So how good is it really for airlines to merge? Two key factors need to be considered when looking at the airline mergers, the benefits for the consumers and the job security of the employees. Professor Darryl Jenkins, director of the Aviation Institute at George Washington University states, ? My nightmare of consolidation is that it will leave us with a very unhealthy airline industry, and that seems to me more probable than anything else? (Marks). Everybody seems to be worried about helping out everyone at the sametime.
But as history has proven many times over, you cannot appease everyone all the time. And with this sudden intrest in the consumer all the time, the value of the Christensen, pg. 2 employees get overlooked. April Grigg, a first officer, pilot, with United Airlines says: ? I am worried that being a new employee at United. Well, for one thing the integration of seniority lists is going to be a nightmare... at United, there are people who stand to lose a great deal of seniority if they go strictly by date of hire and seniority is everything at an airline decides your vacation, work schedules, etc? (Grigg).
This obvious concern for advancement from one airline employee also reflects upon the rest, not to mention those that are incoming. Another big concern that comes with a companys eagerness to want to purchase another airline is looking at how the economy is doing at that time. Sure lately the economy has been great and maybe never better, however? ... some airline analysts say the carriers themselves may want to think twice before merging for their own financial health... The company has also just signed a record contract with its pilots, and the economy is flirting with a recession? (Marks). Because of such concerns, airlines have established unions and union representatives to protect the interests of such actions.
Surprisingly enough, in the case of American Airlines merging with Trans World Airlines (TWA), many of the unions will not support this transaction. The leaders of three unions said they? ... have yet to receive the assurances from management concerning the benefits, job protections and career expectations that our members deserve? (? Unions? ).
American Airlines just went through another big merger only a few years ago. In 1998 American bought out another small, west coast based carrier Reno Air and due to Christensen, pg. 3 this, ? The 11, 000 pilots, who begin contract negotiations this summer, protested American? s 1998 purchase of Reno Air and caused the cancellation of more than 6, 000 flights? (?
Unions? ). How many flights are going to be cancelled this time. Not only for American but how about now United Airlines. Since the Deregulation Act of 1978, airliners have been able to expand their service and partners without the interference of the government. Hence the deregulation. But lately the government has felt that it is necessary to step back into the deciding light to help maintain the integrity of the industry.
Kevin Mitchell, chairman of the Business Travel Coalition (BTC) says in regards to congresses proposed antitrust bill for airline mergers, ? Moreover, this bill also recognizes that the problems of inadequate competition levels, eroding passenger service levels and aviation system gridlock are inextricably linked? (Mitchell). How is this supposed to make the industry service better on either the crews or the passengers? So how good is it really for airlines to merge?
It may come as somewhat ironic that an airline named? United? is trying to buy up all they can and become the largest carrier in the system. But who are they trying to unite? The crews, the passengers, or maybe it is the world that they are trying to unite. All-in-all, it is the ideas of a few, if not several, members of a board or committee that makes these decisions.
They could care less about the consumer or more importantly the employees that keep that company running. With further consolidation an employee will have less opportunity for diversity, and be subject to more rigid guidelines. How much better is that! ? Works Cited Grigg, April. Telephone interview. 19 April 2001.
Marks, Alexandra. ? Critics of Airline Mergers Launch Countermoves. ? Christian Science Monitor Vol. 93 Issue 86 (2001): pp. 2 Mitchell, Kevin P. Airline Competition Concentration. U. S.
Senate Judiciary Subcommittee on Antitrust. Washington: FDCH Congressional Testimony, 21 Mar. 2001? Unions Won? t Support American? s Purchase of TWA. ?
AP World stream 28 Mar. 2001
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