or pay cuts. Companies could also try to pressure on the government to lower the requirements for pilot training in order to reduce training costs for pilots. They could even offer to train pilots themselves.In case direct negotiations fail an arbitrator can be brought in to solve the problem. However, in order to speed up the process of getting to a solution the arbitrator should not try to find a compromise. He would force himself to one side so that both parties move to the center trying to win favour. The third step that must be taken by airlines is to attract customers to traveling by air and to restore their confidence in the industry. This involves increasing security, although this may increase costs. They could then advertise these new security measures so they people are ensured of their safety. They might also introduce a promotional pricing policy where for a limited period of time prices are reduced so as to gain a larger share of the market.In conclusion, I recommend that when reducing costs airlines should use all of the mentioned methods in order to minimize any negative effect that any one of these alone would have on the business. I also recommend that labour disputes should as far as possible be dealt with internally before bring in an arbitrator, in order to prevent any further bad publicity for the industry. I believe that these suggestions if followed will help improve the state of the airline industry....
