Originally Posted by
ElZilcho
I'm not so sure it'll lead to more Job losses.
As I said above, Wages and Fuel make up approx $2.6B of the $4.6B Annual expenses. Fuel is obviously way down and wages are dropping with redundancies. There's another $2B of expenses there which will need addressing.
Jet Pilot wages have probably reduced from ~$230M to ~$175M after Redundancies and the 14% Paycut.
If they make another 200 Pilots redundant, that could reduce the wage bill by another ~$25M, but also risks the remaining Pilots voting against extending the 14% cut beyond 9 rosters. It would also ground the Airbus fleet and require even more down-training.... $25M will not save Air NZ.
I expect we'll be asked to take a larger % Paycut before they make more Pilots Redundant.That's the only solution that keeps Pilots in their current seats, removing the need to re-shuffle everyone, and the only way to reduce the costs of the higher paid Pilots who are protected from Redundancy by Seniority.
Fuel *won't* be way doiwn - it'll be exactly where it was when the beancounters hedged it, which is a few (or more...) degrees north of today's spot prices