Originally Posted by
Icarus2001
Crew costs, crew. Flight crew and cabin crew.
Do they make up 50% of the VA (previous) workforce?
Is a 50% pay cut realistic? Cabin crew would walk at that salary.
I didn't.
As you can see above Boeing and IATA came up with these figures. So the pilot EBA was not the cause of this, neither was Covid 19, that merely brought forward the move to administration.
In my opinion it was lack of cost control. They turned over around $5.5 billion dollars a year and every time I flew on them the aircraft was full, or close to it and yet they could not make a profit. That says to me that costs were too high. 2-5% either way on a pilot EBA would not be the reason for the last ten years.
you misquoted me. I gave an example of 50% of workforce at 75% of what they were getting at VA, not 50%.
As little as a 1% change here, a 1% change there, can make a huge difference, when margins are so small.
Read about Southwest, I think it was in the book NUTS
It said, working backwards, their average annual profit over many years, equated to 1 passenger per flight. In rough terms, that implied 1 less passenger per flight on average, no profit. 1 more passenger per flight, huge profit.
Obviously, if certain flights full, cannot get another passenger on board.
It just highlighted, how little things can make a huge difference.