I fully agree with Leftwing.In any airline....be it Low cost(AIX,Deccan etc) or Full service(AI,IA etc etc),or even for that matter the "Luxury Liner"class(Emirates etc),you have a Fixed Cost Structure(FCS).This is the Non negotiable part of an airlines expense platform.This forms approx 85% of an airlines TOTAL outgoings.The FCS includes but is not limited to expenses like Crew salaries(including Cabin Crew),Fuel Costs,Landing Charges,Aircraft rentals and maintenance,Navigation charges,Parking charges,In Flight catering(to a great extent),Ground Support charges etc etc to name but a few...!!! The other 15% of all airline expenses is called the Variable Cost Structure or the VCS.This is the fun part...!!THIS is the only platform where airlines can legally show ANY and ALL savings.So legally....in order to post a no loss situation,a low cost carrier can only cut a maximum of 15% off of a given route off of a full service airline(all other things remaining constant...!!).This VCS is limited to agents fees,ticketing fees,FDC "perks",Luxury meals in flight,sponsors,in flight magazines etc etc.
Now this should clear up the muck quite a bit should'nt it.You cannot post a profit on ANY account report off of the Crew Salaries(which figures on top of the Non Negotiable part of an airlines outgoings)under any circumstances....!!! Thats cause when showing the initial balance sheet or the flowchart to enable clearance of their ATO permits from the Aviation authorities these airlines HAVE to post a Fixed uniform salary for their captains and copilots(which is a fixed ratio.....NEVER EXCEEDING......that of the National carrier,which is why salary hikes in IA and AI are sooo much more complicated than those of other airlines).When airlines show a payment of 100 units to their FDC but underpay them say only 80 units........THAT my friends is where they have the REAL albiet HIDDEN airline profits....!!!!
.And FDC salaries my good people comprise a kool 45% of the total FCS.......!!! Hehehehe......think about THAT the next time u go for your wage negs.Think about how much u're being shafted by the airline structure,and how much u can actually negotiate....!!! This is where AIX comes in.They absolutely CANNOT expect to underpay their FDC and hope to get away with it...!!Cause its not legal my friends.....just not legal!! KIT.
