Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.
Case from journal
-
Reference no. NAC3311
Published by: NACRA - North American Case Research Association
Published in: "The Case Research Journal", 2013

Abstract

US Airways, one of the largest US air carriers, had a tumultuous past starting with its two historical roots-Allegheny and Piedmont Airlines. In its checkered financial past, it had enjoyed periods of relative financial success but had also been forced into bankruptcy twice, once in 2002 and again in 2004. Restructuring that allowed it to emerge from the second bankruptcy included a provision allowing the company to temporarily outsource reservation call center operations. However, the company contractually promised the union (Communications Workers of America) that these jobs would be brought back to the US as the financial situation of the airline improved. By the summer of 2011, the time of the case, most of the call center operations had already been brought back, and the process was to be completed by October. The emergence of such third party travel sites as Travelocity, Orbitz, and others, marginalised the role of independent travel agents in reservations and customer service. However, call centre operations for the airline industry in the US remained important. For example, US Airline’s annual volume to call centers was around 20 million. The perceived quality of the call center operations by the customer became an important metric in the airline rankings published by independent rating agencies. Airlines had been increasingly competing on a variety of 'preferred customer programs' offering perks from free tickets to club memberships. Donna Kostelic, the East Region Reservations Director is contemplating the creation of a separate preferred customer desk in the Winston-Salem Call Center to improve service to this important customer group. She anticipated that a dedicated serve group would reduce average wait times before the calls are answered and allow trained and specialised agents to more effectively and efficiently advise about the intricate rules of perks and benefits for preferred customers.
Location:
Industry:
Size:
32,000 employees
Other setting(s):
2011

About

Abstract

US Airways, one of the largest US air carriers, had a tumultuous past starting with its two historical roots-Allegheny and Piedmont Airlines. In its checkered financial past, it had enjoyed periods of relative financial success but had also been forced into bankruptcy twice, once in 2002 and again in 2004. Restructuring that allowed it to emerge from the second bankruptcy included a provision allowing the company to temporarily outsource reservation call center operations. However, the company contractually promised the union (Communications Workers of America) that these jobs would be brought back to the US as the financial situation of the airline improved. By the summer of 2011, the time of the case, most of the call center operations had already been brought back, and the process was to be completed by October. The emergence of such third party travel sites as Travelocity, Orbitz, and others, marginalised the role of independent travel agents in reservations and customer service. However, call centre operations for the airline industry in the US remained important. For example, US Airline’s annual volume to call centers was around 20 million. The perceived quality of the call center operations by the customer became an important metric in the airline rankings published by independent rating agencies. Airlines had been increasingly competing on a variety of 'preferred customer programs' offering perks from free tickets to club memberships. Donna Kostelic, the East Region Reservations Director is contemplating the creation of a separate preferred customer desk in the Winston-Salem Call Center to improve service to this important customer group. She anticipated that a dedicated serve group would reduce average wait times before the calls are answered and allow trained and specialised agents to more effectively and efficiently advise about the intricate rules of perks and benefits for preferred customers.

Settings

Location:
Industry:
Size:
32,000 employees
Other setting(s):
2011

Related