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- W153800312 abstract "Many airlines are embracing outsourcing as a way to cut operating costs. This paper provides an overview of this trend, and discusses how it will impact employment, customer loyalty, level of service, safety and security. Outsourcing in the aviation industry has taken place primarily in three areas: outsourcing of assets ownership; aircraft operations; and maintenance, repair and overhaul services. The author concludes that although outsourcing can reduce airline operating costs, it does have some negative impacts. Because most outsourced functions are performed by the contracting company for many airlines, with employees being paid relatively low salaries, one would not expect the employees to value their services to the airlines nor would they demonstrate loyalty and pride. Outsourcing some airline functions, such as baggage handling and cabin cleaning, appears to have impacted levels of service and passenger satisfaction. The increasing trend in outsourcing has prompted the Federal Aviation Administration to establish a program to monitor airline compliance with safety standards and regulations. However, several independent reviews have concluded that oversight of aircraft repair stations is poor. Current regulations require that airline-affiliated technicians be subject to a pre-employment background check, but foreign and domestic independent contractors are not covered by these requirements. Additional security concerns arise from the fact that some foreign contractors are located in areas where terrorist groups are known to operate." @default.
- W153800312 created "2016-06-24" @default.
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- W153800312 date "2005-01-01" @default.
- W153800312 modified "2023-09-24" @default.
- W153800312 title "Outsourcing in the Airline Industry: Policy Implications" @default.
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