Wednesday, September 21, 2005

an important piece of advice for readers

i went to a speaking engagement tuesday with a labor attorney who represents, among others, airline mechanics. He had some fairly dire things to say about the airline industry and the negative effects of low-cost carriers on safety. In brief, LCC's lease planes (low capital/entry costs) and don't provide healthcare or pensions to employees. This drives down prices and puts established carriers (who have pension and health care costs) at a competitive disadvange. Established carriers have to cut costs. One way of doing this is by drastically cutting the number of mechanics (they can do this by spacing out maintenance checks, working mechanics harder, etc). Mechanics have to give planes a 'pass' to leave the airport, but they are under huge pressure to pass on un-airworthy planes, since not passing the plane means $1 million+ in revenue lost. Further, most airlines are now outsourcing mechanic jobs; i didn't get the whole story on this, but the result appear to be that the mechanics are less accountable under federal law (for example, an american mechanic can be jailed for negligent job performance; a foreign mechanic may not be so accountable). this lawyer told of several he cases he litigated and won in which airlines threatened mechanics and pressured them to put unsafe planes in the air. this area is ripe for reform, but thus far accidents have been spaced out enough that there is no political will to fix the problem.

the long and short of it: fly American Airlines. this lawyer said he always flys american if he can b/c they provide their own mechanics, as opposed to outsourcing the work. he seemed to know what he was talking about.

another interesting observation by this attorney: he argues that current bankruptcy laws are keeping airlines that should go under alive. The result is too much capacity and prices that are too low to sustain the better-run companies in a manner that allows them to provide appropriately safe service.

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