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Old 27th Aug 2020, 10:58
  #46 (permalink)  
krismiler
 
Join Date: Jul 2010
Location: Asia
Posts: 1,536
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There are two schools of thought:

1. Having got a substantial reduction in ground handling charges, there is less pressure for reductions in other areas.

2. Having got a substantial reduction in ground handling charges, continue the momentum across all departments. Restructure and break union control.

Baggage handlers were grossly overpaid and only got what they did because of their ability to ground the airline, they can easily be replaced. This has been demonstrated many times as other airlines outsourced.

Pilots are a different matter, safety critical and expensive to train, the company has a considerable investment in each one that they employ. Overall a relatively small percentage of operating costs so less reward for cost reduction but plenty of potential for disruption, and not so easy to replace given lengthy training and lead in requirements.

Possibly a few concessions needed during the current situation but T&Cs can be restored once profitability returns.
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