It is reported again that Continental Airlines, Pan American World Airways and Eastern are looking at strikes from its employees. Employees feel that because these airlines are either bankrupt or on the verge that their jobs are in jeopardy. It is said that they will not be able to strike because the union does not allow strikes while they are on the contract. Employees say they will strike anyway and that they have a right to walk out on the airlines if something does not happen to them to their advantage. I wonder what would happen to flights if the employees went on strike. It would be interesting to see.
This is not the only thing affecting airlines. There are also rising fuel prices. With jet fuel prices rising 74 percent within the last year, airlines are not sure what will happen to its revenue. Southwest Airlines however are doing really well and are taking the place of many of the airlines. What is happening to the airlines?
1 comment:
There's some good strategic behavior involved here. The question should not be "why would they want to strike?" but rather "since they are threatening to strike, how could that help them?"
First off, they have threatened rather than gone out and done the deed. This makes me think they view it as a risky proposition, because the airlines might go bankrupt.
Secondly, they must think that striking could somehow hurt the airlines. For example, an airline on strike may incur variable costs that it wouldn't if it were running (suce as the costs of mothballing planes, and the loss of consumer goodwill) that could be avoided if they averted a strike.
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