Ref: IMD-7-1971

Case study

Reference: IMD-7-1971

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OSM Aviation: Outsourcing labor in the aviation industry

John W. Walsh

By Professor John W. WalshJohn W. Walsh and Valerie Keller-Birrer

OSM Aviation, a newcomer in the sector, is disrupting the aviation industry. The specialist in the employment, training and administration of cabin crew and pilots is changing the way airlines approach talent management. OSM Aviation’s idea is based on a new and comprehensive outsourcing model of “total crew management” – taking responsibility for the entire crew management process, from recruitment and training to planning and execution. The company’s value proposition is two-fold: offering crew members secure, fair and predictable employment; and giving airline operators both added flexibility and an opportunity to save costs, as well as providing them with top quality crew members.

Learning Objective

The case discusses the opportunities and challenges facing a labor outsourcing company. Participants will be asked to evaluate the key advantages and disadvantages of outsourcing labor. They will further assess the strategic choices OSM Aviation is facing to offer a value proposition appealing to all stakeholders – airline operators, employees, unions, flight school candidates. Finally, participants will be asked to evaluate the idea of a total leasing proposition.
KeywordsAviation, Human Resource Executive, Management, Outsourcing, Strategy, Talent, Talent Management
TypeField Research
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Reference: IMD-7-1971

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Reference: IMD-7-1971

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