Originally Posted by
RexBanner
Although that’s clearly what most of us would like to see, the issue for the Company is that it’s not quite as black and white as that as the Manpower Equivalent (MPE) might be reduced by 25% but they will still have 100% of the cost of 4500 recurrent Sims, SEP training and medicals (quiet at the back!)..
I do not know about BA, but the cost of having 2 skippers at 50 % instead of 1 skipper full time at another well-known British airline was close to 20 000 pounds/year. I guess it is just a bit lower for FOs. Let's say it is 15K.
1000 pilots x 15 000 pounds is 15M pounds/year of extra cost with 75 % against massive head chops.
But now you need to take into account:
- Cost of redundancy
- Cost of retraining
- Cost of re-employing those people if market picks-up quickly
- Loss of market share if opportunities arise, but you do not have the people to compete for it.
And I guess those 15 000/year of extra cost easily fade away with the facts mentioned above, especially taking into account that aviation is expected to be back at 19s levels in 2 or 2,5 years.
75 % is probably the wisest option for everyone. The problem? Many people will like it and want to stay on it post-COVID19!