Outsourcing

BoatBuoy

Rear Admiral
Joined
May 29, 2004
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4,856
Reuters, March, 29<br />"Delta, the No. 3 U.S. airline, said it expects to cut costs by about $240 million over five years, by outsourcing aircraft maintenance work."<br /><br />Doesn't give you a warm feeling knowing that a Chinese or Mexican firm might be bidding on that contract.
 

wajajaja

Chief Petty Officer
Joined
Dec 16, 2003
Messages
470
Re: Outsourcing

I SUSPECT THEY MEAN OUTSOURCING TO A AIRPLANE MTCE COMPANY INSTEAD OF INHOUSE. IT WOULD NOT BE PRATICAL TO FLY EVERY PLANE TO BANKOK FOR A OIL CHANGE. THEY'RE LOOKING FOR CHEAP LABOR, TO GET OUT OF RETIREMENT COMMITMENTS AND TO LOWER THE OVERHEAD,MANAGEMENT(NON-PRODUCTIVE) AND IDLE TIME TO A VENDOR WHO CAN FILL A WORKDAY FROM VARIOUS AIRLINES.
 
D

DJ

Guest
Re: Outsourcing

RETIREMENT COMMITMENTS
You just nailed it. <br /><br />We, as Americans, expect these "retirement" benefits. Yet, we have a hard time paying for those employees (BABY BOOMERS) that went before us to actually build the retirement systems/plans.<br /><br />Trouble is, there is a flood of retirees (baby boomers), not unlike the Social Security.<br /><br />Foreign corporations, whether implanted here, or not, have a distinct advantage. They only hire younger workers thus they do not suffer from the same health care and retirement woes that older US companies do.<br /><br />Think about that, before you sign the papers for that new Toyota or Kia. Or, the hell with the neighbor.
 

NathanY

Commander
Joined
Mar 16, 2002
Messages
2,408
Re: Outsourcing

Outsourcing sucks. I will give you an example. <br /><br />I called earthlink about a problem that I was having with my Norton Anti-Virus (provided by earthlink). They said no problem, let me transfer you. So they transfer me to Habib Makalakabubu in India. I dont understand what the hell he is saying. So I get tranfer again to Do Chicamapooopooo in Manilla Phillipines, speach is better but still hard for me to understand. I tell her what the heck. Transfered back to Billing to Chad from Colorado. He understood perfectly what I said when I told him to cancel my services.<br /><br />Outsourcing Sucks.
 

roscoe

Supreme Mariner
Joined
Oct 30, 2002
Messages
21,739
Re: Outsourcing

They aren't the first, nor will they be the last, to fly their planes to central america for service work.
 

rogerwa

Commander
Joined
Nov 29, 2000
Messages
2,339
Re: Outsourcing

Just think of it. They can pay for the maintenance services without being held hostage by the union. Might even be easier to manage the company..
 

snapperbait

Vice Admiral
Joined
Aug 20, 2002
Messages
5,754
Re: Outsourcing

Ah, I see.. Union bashing.. If your home were near an airport and located in a flight path, you might change you're tune a bit, Rogerwa..<br /><br />No.. I think I want, no, I insist that an American, well schooled, certified, union represented employee, be turning wrenches on the planes that fly over my house...
 

rogerwa

Commander
Joined
Nov 29, 2000
Messages
2,339
Re: Outsourcing

I am not bashing just stating my opinion. Unions have been a necessity in the past. But I think it is naieve not to look at how the collective bargaining has limited the management of the company from actually managing the company.<br /><br />There are plenty of industries that have very skilled individuals that are not union represented. (surgeons, Application developers, etc..)<br /><br />My dad was a union guy. I could never understand why my dad, who did a fantastic job, took extreme pride in his job, was given the same pay, increases, etc to the guy he worked with who was a drunk, spat on the floors he was supposed to keep clean and basically relied on the union to protect him. I counldn't understand why that didn't bother him. It should have.<br /><br />I myself have been outsourced. I see a lot of work going offshore. Frankly I can understand the reasons the decisions are being made. Executives in publicly held companies are there to increase shareholder value. That is the reason the business is there. To make money for the shareholders. You can't raise ticket prices. Fuel costs are escalating. You have extraordinary capital requirements. You also have your labor demanding wages and benefits that push you out of the competitive window when you add all these things up. What are you going to do?? Outsourcing seems to be a pretty smart choice.<br /><br />BTW I used to live under final approach. I was more worried about the noise pollution.
 

cmyers_uk

Senior Chief Petty Officer
Joined
May 4, 2004
Messages
760
Re: Outsourcing

Snapper<br /><br />
No.. I think I want, no, I insist that an American, well schooled, certified, union represented employee, be turning wrenches on the planes that fly over my house...
Nice idea but that would mean only American airlines could fly from / too the US. Not really a practical solution. but I understand your sentiments. The problem is that if airline x outsources and saves $$$ they can offer much cheaper flights than airline Y the consumer then votes with his feet and flys with airline X forcing airline Y to outsource or go under. Its called capitalism.
 

Mark42

Fleet Admiral
Joined
Oct 8, 2003
Messages
9,334
Re: Outsourcing

Interesting twist on outsourcing:<br /><br />My company decides to "insource" rather than outsource. Insourcing is giving work to other companies owned by the parent company. They claim insourcing saves the company money because they don't have to hire consultants at 3 times the cost of a corp employee. They also are giving work to employees that are under worked and in danger of being laid off. <br /><br />So my company goes to India and buys a company to "insource" a lot of its data processing work to.<br /><br />Gotta love it.
 

NYMINUTE

Captain
Joined
Oct 6, 2003
Messages
3,298
Re: Outsourcing

This is a sore spot for me. Already lost 2 positions to Mexican manufacturing. My tolerance level is zero. To make matters worse, those illegals coming in are taking other jobs. This NAFTA treaty SUX. :mad: :mad: :mad:
 

cmyers_uk

Senior Chief Petty Officer
Joined
May 4, 2004
Messages
760
Re: Outsourcing

Mark,<br /><br />American company I work for does the same, brought a Company in India which we outsource our work to so we still get the profit and can compete for business. The analegy is that if they didnt do it the Indian companies coming direct offering the such a cheap service would win all the work.
 

Mark42

Fleet Admiral
Joined
Oct 8, 2003
Messages
9,334
Re: Outsourcing

Hey Chris, I wonder if we work for the same company... Stock trading at $45.00 or so?
 

cmyers_uk

Senior Chief Petty Officer
Joined
May 4, 2004
Messages
760
Re: Outsourcing

No, clearly were not doing as well as your Company our stock is only around $13. Better look at some more outsourcing opportunities ;)
 
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