Originally Posted by
Rated De
The entire sinew of Ryanair is predicated on unlimited supply of labour. The process or recruitment, management and disposal of staff, has at its genesis an 'assumption' that what leaves is simply replaced. (and cheaply) With minimal sunk costs in the labour unit itself (think pilot training, pensions and even uniforms) the loss for the company was minimised. If one considers the EU itself, there are nations here where the demographics helped them sustain this practice.
The fundamental flaw in Ryanair's thinking is that:
- Pilots own their log book hours
- Pilots own their endorsements
- Aviation is globalised.
Given that Operating Revenue is a result of operation, pilots or rather lack of it impact the business. Thugs like O'Leary are being progressively dragged kicking and screaming to the new paradigm: Pilots are essential.
Over in the USA is a highly unionised, well paid airline, who also operates in the Low Fare sector. Their CEO and company sinew is different.
"A company is stronger if bounded by love than fear-Herb Kelleher"
Ryan air will need to change to meet the new paradigm. If they don't they will realise the truism that it is hard to operate an airline without operating revenue.
Little Napoloen (Alan Joyce) in the antipodes, famously remarked cicra 2004 at a Sydney hotel press conference speaking of the Jetstar pilot model:
"We will work them hard for 5 to 7 years and then replace them"
Many airlines have tried to replicate the Southwest structure, however cherry picking bits of it, whilst maintaining the adversarial model has yielded very little.
You cannot fake sincerity, but the worse it gets for industrial bullies like Mr O'Leary and eventually 'downunder' too (Alan Joyce) they will try!
Many years ago I was fortunate enough to be at a presentation by the Southwest pilot's union and tried hard to get some of the practices that were normal in that company introduced into my UK airline; unsurprisingly without success. Herb Kelleher is/was a
leader and that is the difference. O'Leary and others visited SW, plundered the low cost model but left out all the good ideas that made the company special and good to work for. At that time, SW had the lowest fares and highest pay in the US and with enviable work and roster practices. Kelleher's apparent generosity was based on the simple principle that the
number 1 priority was to
maintain the schedule, no matter if it cost more to do that.
I still remember the look of fear in the manager's eyes when we proposed some of these measures. It was too difficult, too difficult to justify to those above them and they ran for the hills, with all the problems still intact. O'Leary's is no different.