Publications
Publications
- November 1990 (Revised August 1992)
- HBS Case Collection
American Airlines (B): Compensation and Cost Reduction
Abstract
American Airlines' strategy in the 1990s calls for continued growth, improvements in customer service, and cost reduction. Central to cost reduction efforts is the need to contain labor costs. After having signed a very expensive new contract with its pilots' union in early 1991, American is now faced with the challenge of increasing productivity and controlling costs for its other employee groups.
Keywords
Cost Management; Labor Unions; Compensation and Benefits; Air Transportation Industry; United States
Citation
Loveman, Gary W. "American Airlines (B): Compensation and Cost Reduction." Harvard Business School Case 491-060, November 1990. (Revised August 1992.)