What are the economic benefits and risks


Question:

Just how tired were Delta Air Lines Capt. Roscoe McMillan and his crew last Wednesday when he diverted his Atlanta-to-Tokyo flight to Portland, Oregon, and called it a day? Too tired, in his judgment, based on more than 30 years as a Delta pilot, to continue safely with the 14-hour journey to Narita International Airport, according to what the captain told Delta officials. The problem: Two of the other pilots couldn't sleep in the aircraft's controversial new berths, and based on earlier experience, Capt. McMillian figured he couldn't either. Capt. McMillan, who has a perfect flying record and a reputation for being= outspoken, has been campaigning against the bunks from the start. In a recent posting on the pilots' union private Web site, he wrote of the new setup: "I think it stinks." Delta adopted the new berths as part of a redesign of its international service. Among other things, the new bunks allow for more seats, which Delta says will translate into $40 million in additional revenue from the five altered planes over the next five years. Shortly after the incident, the Air Line Pilots Association filed a grievance and lodged a complaint over the issue of the berths with the

a. Who are the stakeholders in this situation? What do you think are the ethical issues?

b. If you were asked by Delta and the pilots union to mediate this issue, what are the facts you might need to determine?

c. What are the economic benefits and risks that should concern an airline in such a case?

d. What are the issues that should concern the pilots and the union?

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