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Restructuring of Civil Aviation: Consequences for Management and Personnel

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Restructuring of Civil Aviation: Consequences for Management and Personnel TMICA/2002/RD INTERNATIONAL LABOUR ORGANIZATION Restructuring of civil aviation: Consequences for management and personnel Reference document Geneva, July 2001 INTERNATIONAL LABOUR OFFICE GENEVA Explanatory note This document was originally prepared by the International Labour Office to serve as the basis for discussions at the Tripartite Meeting on the Restructuring of Civil Aviation: Consequences for Management and Personnel. It was completed in July 2001. The events on 11 September 2001 dramatically changed the economic and social situation in the industry. The Governing Body of the International Labour Office decided in its 282nd Session (November 2001) to change the title and the purpose of the Meeting. The new title will be Meeting on Civil Aviation: Social and Safety Consequences of the Crisis Subsequent to the 11 September 2001 Events. The Office will prepare an Issues paper for this Meeting. The present document will serve as a reference document. TMICA-R-2001-09-0062-1.Doc iii Contents Introduction................................................................................................................................... 1 1. The changing environment of civil aviation............................................................................ 3 1.1. Airline traffic trends ...................................................................................................... 4 1.2. Regional airlines............................................................................................................10 1.3. Operational results......................................................................................................... 11 1.4. National consolidation................................................................................................... 14 1.5. Low-cost airlines ........................................................................................................... 16 2. Technological and other developments ................................................................................... 17 2.1. Aircraft developments ................................................................................................... 17 2.2. Engine developments..................................................................................................... 18 2.3. Air traffic control systems ............................................................................................. 18 2.4. Environmental concerns ................................................................................................ 19 2.5. Air-rail: Competition or partnership?............................................................................ 22 2.6. Electronic ticketing and commerce ............................................................................... 22 3. The restructuring of the industry: Deregulation, liberalization, privatization ......................... 25 3.1. Deregulation .................................................................................................................. 25 3.2. Liberalization................................................................................................................. 26 3.3. Privatization and/or commercialization......................................................................... 28 3.3.1. Airlines ............................................................................................................. 28 3.3.2. Airports ............................................................................................................. 29 3.3.3. Air navigation services...................................................................................... 31 3.4. Spinning off non-core activities: New global operators................................................ 32 3.4.1. Catering............................................................................................................. 33 3.4.2. Ground handling................................................................................................ 33 3.4.3. Maintenance ...................................................................................................... 35 3.5. Other developments....................................................................................................... 35 3.5.1. Outplacing......................................................................................................... 35 3.5.2. Other forms of outsourcing ............................................................................... 36 4. The implications for management ........................................................................................... 37 4.1. The problems of mergers and acquisitions: What is involved?..................................... 37 4.2. Reaching the market: The value of alliances................................................................. 39 4.3. Reaching the customer .................................................................................................. 40 4.4. Managing competition................................................................................................... 42 4.5. Leasing .......................................................................................................................... 43 TMICA-R-2001-09-0062-1.Doc v 5. Implications for personnel ....................................................................................................... 45 5.1. Employment ..................................................................................................................45 5.2. Skill shortages................................................................................................................ 50 5.3. Training and licensing ................................................................................................... 52 5.4. Productivity ................................................................................................................... 55 5.5. Wages and working conditions...................................................................................... 56 5.6. Gender issues................................................................................................................. 60 5.7. Worker alliances............................................................................................................ 62 6. Decent work, occupational safety and health, violence and stress .......................................... 64 6.1. Occupational safety and health...................................................................................... 64 6.1.1. Flight deck and cabin crew staff ....................................................................... 65 6.1.1(a) The responsible agency..................................................................... 65 6.1.1(b) Exposure to radiation........................................................................ 65 6.1.1(c) The cabin environment ..................................................................... 66 6.1.2. Issues for cabin crew staff................................................................................. 67 6.1.3. Ground staff ...................................................................................................... 68 6.1.3(a) Ramp (tarmac) workers .................................................................... 68 6.1.3(b) Airport check-in staff........................................................................ 71 6.2. Violence and stress ........................................................................................................ 71 7. Restructuring and social dialogue............................................................................................ 76 7.1. Collective bargaining and labour-management relations in the United States............................................................................................................ 77 7.2. Collective bargaining and labour-management relations in Europe and elsewhere.................................................................................................... 81 7.3. Industrial conflicts .........................................................................................................86 7.4. Possible future developments ........................................................................................ 89 8. Summary.................................................................................................................................. 90 8.1. The economic motivation for restructuring ................................................................... 90 8.2. Technological and other developments ......................................................................... 90 8.3. The restructuring of the industry ................................................................................... 91 8.4. Implications for management ........................................................................................ 92 8.5. Implications for personnel............................................................................................. 93 8.6. Decent work, occupational safety and health, violence and stress ................................ 94 8.7. Restructuring and social dialogue.................................................................................. 95 vi TMICA-R-2001-09-0062-1.Doc Introduction Air transport, including civil aviation, is one of the world’s most important services. Its development and its technical and service
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