Virgin Atlantic to contract-out all its groundhandling in the US

[concorde001]

Courtesy of airliners.net, one of VS employees in the US posted that Virgin have confirmed that all its ground handling operations are going to be contracted out to ground handlers from mid-September 2005.
But thats odd, because on VS website they have put on an ad recruiting for customer service agents at EWR Newark,
Strange?

[sevenforeseven]

Concorde001 does that include engineering??

[srs what?]

I doubt it will be PAX Services as well. It will probably just be Ramp Handling, Loading, Cargo etc. I think it's going to Globeground which will all tie in with the worldwide outsourcing contract just given to LSG for complete management of Inflight Services Management - catering, cleaning etc.

[concorde001]

Apparently it has been confirmed that it is ALL ground staff, including passenger services...again got this from airliners.net

[Standard Jet Dep]

Have not anything from the comapany regarding this and find it to be a little strange to hear. Not many stations with total function through a ground handling agent two that spring to mind are LGW and NRT. Anyway any more news keep it coming.

[concorde001]

According to a member of airliners.net
"from what i understand from JFK staff. the outsource company will wear VS uniforms in oder to give the public the impression that they are VS employees.

This is a shame, but I guess we are faced with the new realities of employees being just a number on a balance sheet"

[Standard Jet Dep]

Just talking to a colleague and apparently true according to a briefing today what a shame but more ways of saving money apparently.

[sevenforeseven]

Confirmed 15th September is the date.

[PAXboy]

This today (21st April '05)

Major companies are turning their backs on outsourcing because the strategy has failed to cut their costs.

According to research by Deloitte Consulting, companies that were quick to participate in outsourcing are bringing operations back in-house. More than two thirds of respondents to the Deloitte survey said they have had "significant" negative experiences with outsourcing projects.

One in four participants have brought operations back in-house after realising that they could be provided better, and in some cases at a lower cost, internally.

Cost savings expected from outsourcing did not materialise for 44 per cent of respondents, and nearly two out of three ended up paying for services they thought were included in the contracts with vendors.

Full story at: Silicon.com (http://management.silicon.com/itdirector/0,39024673,39129755,00.htm)
I have been in telecomms/IT for 25 years and I saw this outsourcing start in the USA in 1989. I did not like it then and am pleased to see recognition that it is not a panacea. It is a numbers game and not a service game or a staff management game.

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"I tell you, we are here on Earth to fart around, and don't let anybody tell you any different." Kurt Vonnegut, Jr.