Magic Carpet Airlines Case Study - 1637 Words

Magic Carpet Airlines (MCA) was a regional airline company that established operations in 1961. Over a span of 26 years, MCA grew from servicing flights in two cities to 18 cities. In 1987, MCA purchased another regional airline, River City Airlines (RCA), and merged the two operations. With the merge of the two regional airlines, the company became a small â€Å"national† airline until 1988 when MCA entered into a marketing agreement with a major national carrier to become a â€Å"feeder† airline for the carrier. Prior to the merging of MCA and RCA, neither company’s flight attendants were unionized. Rising concerns starting emerging among both MCA and RCA flight attendants in regards to the unsystematic way MCA’s management resolved personnel†¦show more content†¦Flight Attendants were worried about the arbitrary process MCA’s management used to resolve issues, expressly the margining of the seniority list and working conditions. This was a concern of job security. The flight attendants explicitly requested their seniority carry over to any new company in the event of another merger or buyout of MCA, and protection from any layoffs that may result. The flight attendants also expressed concerns with regarding wages via duty rig, and requested the same provision as those provided to the pilot. As of current, MCA only paid flight attendants for the time they were in the aircraft with it moving, they were not compensated for time spent sitting in airports or waiting for flights. The flight attendants want to implement duty rigs, where they are compensated a fixed percentage for time spent on duty with the company. Prior to negotiations, MCA was in a state of transition which caused much confusion. The negotiation team for MCA consisted of a group of executive management. Bill Orleans, the director of labor relations, was recently demoted from director of human resources, which he resented. Orleans was responsible for previously negotiating most of the union contracts at MCA. Ross Irving, the new director of human resources, was hired from an outside firm. Since Irving was hired as Orleans replacement, this created tension between the two, as a result, Irving avoided the negotiating sessionsShow MoreRelatedEssay on Magic Carpet Airlines Case Study1191 Words   |  5 Pagesï » ¿ Case Study – Magic Carpet Airlines Week 4 September 22, 2013 1. What did the union do to prepare for negotiations? What additional sources of information might it have used? What were the unions primary objectives? The union began preparing by doing research to find out what other similar airline carriers were supplying for their flight attendants (i.e. average working conditions, benefits, and wage rates). 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