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Magic Carpet Airlines Case Study
1. Mr. Orleans was the chief negotiator for Magic Carpet Airlines. During the negotiations, changes to the collective bargaining agreement were agreed to by the parties. What did Mr. Orleans do that could be considered unethical? Why do you think he did this?
2. With respect to the negotiation of seniority rights for the flight attendants, what did Magic Carpet Airlines propose in order to try to get the union officers to agree with Magic Carpet Airlines on this issue? How did the flight attendants negotiating committee respond? Was this ethical?
3. What strategy did the mediator propose to try to get the union to agree to the insertion of an arbitration clause to protect the seniority rights of all the flight attendants on the seniority list? What advantage is this to the union?
4. Why did the mediator quit?
5. With the deregulation of the airline industry in 1978, smaller airlines became "feeder" airlines for national airlines. How did the public perceive the feeder and national airlines? Why?
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