Franchise News

United Airlines Outsourcing Plans Place 2,000 Jobs At Risk

Jan 12, 2015 09:00 PM EST | By Michael Smith

United Airlines has announced that is in the process of assessing whether to outsource approximately 2,000 jobs at airports around the United States.

The possible outsourcing would allow the company to cut expenses by $2 billion, following in line with financial goals the company's leadership established in 2013.

"We need to ensure that our costs are competitive," company spokesman Luke Punzenberger said, according to Reuters.

Some of the occupations under review for outsourcing include customer service agents, gate agents and baggage handlers. However, since most of the employees holding positions under review are protected by union contracts preventing furloughed work, they may be able to negotiate alternative positions within the company.

Those who began working for the company prior to April 2006 may be protected by the union contract, Reuters also reports.

Delta Airlines, one of United's main competitors, has also experienced its own woes.

Last Monday American Airlines and Hawaiian Airlines announced plans to ask the United States Department of Transportation to withdraw Delta's right to land at Tokyo's Haneda Airport in one of four daily times.

It would allow competitor companies that are not as well-positioned in the Asian travel market to overtake United Airlines and Delta Airlines' current lead in the region. Both of the abovementioned American companies currently host the highest number of airport terminals in Asia compared to any others based in the United States.

"Addressing the lack of any American service at all to Haneda is critical to American's Asia presence, enhancing our network to be competitive with United and Delta, and giving the traveling public meaningful choices," wrote Chief Marketing Officer Andrew Nocella in a testimony, Reuters earlier reported.

"Gaining access to Haneda heads the list of American's top international priorities."

© 2024 Franchise Herald. All rights reserved.

Franchise News

Real Time Analytics