Business Services Industry
Facing a Slowing Economy, Airlines Use Technology to Cut Costs.(Knight Ridder/Tribune Business News)
Knight Ridder/Tribune Business News, February, 2001 by Yung, Katherine
Feb. 6--In previous economic downturns, airlines did the obvious -- cutting back on food service and adding extra seats to airplanes.
But with today's heightened focus on customer service, the nation's carriers can no longer get away with such cost cutting. Instead, they have seized upon subtle ways to save money in the face of rising labor costs, a slowing economy and an uncertain outlook for jet fuel.
Among the changes:
American Airlines Inc. is rolling out upgraded computer systems to simplify and speed up complex transactions for its reservations agents. With the new technology, agents now answer a greater number of customer phone calls than before and the airline has cut 300 jobs through attrition.
Since October, Delta Air...
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