Spirit Airlines to outsource jobs to US vendor CGS

Soon after United Airlines announced the outsourcing of about 2000 jobs to low cost vendors outside of US, Spirit Airlines in South Carolina which is also Myrtle Beach International Airport’s largest carrier, will outsource its ticket counter staffing starting from Match 2015.

The move is not expected to increase ticket prices or change the schedule of flights for Spirit, but will impact the 23 employees it will keep on its payroll through March 25. There has however been indication on transfer of employees to vendor payrolls. This is a possibility considering that the contracted firm is operating within the US. The firm is Delta Global Staffing (DGS) and provides ticket-counter staffing services.

It should also be noted that most of Spirit’s ticket counters across the country are operated through a third-party company and that the firm simply seems to have wanted to bring in the rest, including MYR.

Fort Lauderdale will be the only airport that Spirit will not outsource its customer service because it has about 450 employees and, as per official statement, these efficiencies that come from having that many employees allow Spirit to keep them as Spirit Airlines employees. The statement also said that DGS is open to hiring the airline’s existing employees on its own payroll. This process will certainly help DGS save significant sums in employee training costs.

It was unknown which other carriers, if any, outsource its ticketing operations at Myrtle Beach International Airport. Kirk Lovell, spokesman for the airport, could not be reached for comment Monday afternoon.

The DGS employees will still be wearing Spirit uniforms and representing Spirit Airlines.

The operations will be maintained by Spirit employees who will be the general manager of that station and senior customer service people. The management and the accountability and responsibility for running the station is still with Spirit Airlines, it’s just the people who are doing it are employed by DGS, as per statement by the Spirit.

United Airlines to further outsource customer care jobs abroad

Continuing with their already existing policy on outsourcing, United Continental Holdings Inc., which United Airlines, has recently announced that they are looking at vendors outside the US to outsource as many as 2000 jobs. This will include the 28 airports that they operate including the ones in Miami and Atlanta.

India is already a top destination for UA as they have existential contracts for many of their customer service jobs in the country. However, Philippines and other emerging BPO hubs may get consideration.

Just about 2 years back, UA was trying to lower its costs by turning to vendors at six U.S. airports and three in Canada, affecting nearly 500 jobs and in 2014 it outsourced about 635 jobs at 12 additional U.S. airports. But some 200 workers at three small airports in Hawaii voted to accept concessions to keep their jobs. Now, in its latest salvo, United is potentially targeting a far large number of workers and locations.

United Airlines is based out of Chicago and is the 2nd largest airline in the United States. Keeping some factors in mind, the firm also said that it is in active discussion with the unions on keeping some jobs in house. The statement also pointed out relocation possibilities for some employees in order to accommodate them with other US based jobs within UA.

Many domestic airports served by United, American Airlines Group Inc., and Delta Air Lines Inc., already use outsourced labor for baggage-handling and customer-service jobs. But American and Delta own their own divisions that bid on such work, while United has no such unit.

The list of cities being affected include Anchorage, Alaska; Hartford, Conn; Billings, Montana; Nashville, Tennessee; Boise, Idaho; Indianapolis, Jacksonville and Fort Myers, Florida; San Antonio and McAllen, Texas; Ontario, San Jose and Sacramento, California; Kansas City; Oklahoma City; Tulsa; Providence; Richmond and Norfolk; Virginia, Omaha; Nabraska, and Raleigh-Durham, N.C.; and Greensboro, S.C.