His legacy at AA is that of massive employee hatred, and the beginnings of the massive exodus of the outsourcing of flying to lower paid cheaper regional operations.
I would rather look at Herb Kelleher and SWA as a model of how to make money and run a business. Goodwill & cooperation amongst employees, and without outsourcing of flying.
Frank Lorenzo was truly the father of the modern, post deregulation airline business.
He brought many exciting and purposeful innovations, but mostly he is a hero for identifying the primary "fat" to cut in an airline - employee wages, particularly greedy, highly paid pilots.
Prior to Lorenzo, pilots were underworked, over-paid, and this greed was crippling airlines. Lorenzo, in his ultimate wisdom was able to identify, cut this horrific waste out, and by standing up to the unions was able to save Continental Airlines. He did not save CAL by himself - the brave pilots that crossed the picket lines were invaluable and are still a proud force today! Unfortunately, not enough pilots were brave enough to stop the demise of EAL after the greedy mechanics struck and the pilots did along with them. This is too bad because Lorenzo could have saved them as well!
The airline industry owes Frank Lorenzo a debt of gratitude. By gutting the greedy pilot, FA and mechanic contracts he was able to get costs under control for the consumer!
His legacy at AA is that of massive employee hatred, and the beginnings of the massive exodus of the outsourcing of flying to lower paid cheaper regional operations.
I would rather look at Herb Kelleher and SWA as a model of how to make money and run a business. Goodwill & cooperation amongst employees, and without outsourcing of flying.
His legacy at AA is that of massive employee hatred, and the beginnings of the massive exodus of the outsourcing of flying to lower paid cheaper regional operations.
I would rather look at Herb Kelleher and SWA as a model of how to make money and run a business. Goodwill & cooperation amongst employees, and without outsourcing of flying.
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