Question
Amazing Airlines is a private airline, catering to CEOs and other busy business people.In order to improve its profit margins, Amazing Airlines decides to reduce
Amazing Airlines is a private airline, catering to CEOs and other busy business people.In order to improve its profit margins, Amazing Airlines decides to reduce the number of mechanics on staff and to minimize inspections of aircraft to half the frequency it previously utilized.In addition, it changed its policies to allow for its mechanics to work double shifts, with a one hour rest between shifts.Due to the reduction in staff, mechanics also were required to drive between airports serviced, using company cars. In order to account for these changes in policy, the company re-wrote its corporate guidelines to reflect these modifications to its procedures to assure that they matched the new procedures.These procedures mirrored what Awesome Airlines, its competitor, was doing, but the procedures would result in less frequent maintenance and inspections than the average commercial airline.The Company believed that the combination of reduced workforce and reductions in the frequency of inspections would significantly reduce costs and greatly increase its competitiveness in the market.You are the risk manager for Amazing Airlines.In separately numbered paragraphs for each change made, discuss whether the change made affects tort exposure to the Company and how exposure is impacted, whether such exposure would appear to be appropriate under the circumstances, even if tort exposure is made worse and whether risk transfer would be an option to reduce tort exposure for each change.
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