Even though Delta outsourced its HR, it kept recruiting in house. But when it merged with Northwest, it turned to PeopleScout, an RPO, to recruit hard-to-find talent like flight attendants with foreign languages skills and good customer service people.
Investing in innovation is critical to business success, especially in highly competitive industries such as the airline industry, which was hit hard with cost constraints after the September 11, 2001 terrorist attacks. Yet, British Midland Airways has been innovating and achieved many firsts in service quality. Outsourcing the highly specialized area of revenue accounting had a major impact on cash flow.
Premium customer service is goal one for Southwest Airlines. Top-flight fleet maintenance makes high-flying customer service would simply possible. Southwest outsources the maintenance of its 450 planes. Its lower maintenance costs help it compete on price.
How does a start-up airline offer classy customer service and save well over a million dollars in up-front capital? Easy–outsource the function. Alpine Access, a provider of home-based employee CRM agents, recruited, screened, and hired ExpressJet’s agents in a matter of weeks.
Outsourcing has been one of the most important factors in the industry turnaround, providing an opportunity to remove large amounts of fixed cost while drawing on the expertise of the outsourcer to update the airline’s technology base. Read why airlines are outsourcing important business processes.
Continental Airlines has 1,500 remote workers. Outsourcing its remote telecom access saves at least $75,000 a month in connectivity costs. And the supplier offers better security.
Malmö Aviation, the second largest airline in Sweden, has a laser focus on customer service, which is run by its IT infrastructure. Outsourcing IT to Unisys allows the airline to serve its travelers instead of worrying about its servers. Now its growth pattern looks like a plane taking off.
Flexibility is an important piece of aviation outsourcing. Attorney R. Allen Naude of Baker & McKenzie shares do’s and don’ts for airlines.
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