Originally Posted by
Popgun
Pilot salaries are such a tiny fraction of the total costs of running a large airline that they will neither make nor break the ensuing profits.
No, this resistance to agreeing to a fair and respectable new pilot contract at JQ is all about ideology and ego...not economics.
PG
Its all about economics.
Get a 5% wage increase, then everyone else will be demanding a 5% increase instead of 3%. On a $4.3bn wage bill that extra 2% equates to an extra $86m per year. Get that increase for a second year and the cost increase is $172m over the 3% figure (before compounding). Its a simplified calculation but it illustrates the problem.