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Old 2nd Dec 2005, 21:37
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Carnage Matey!
 
Join Date: Apr 1999
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No, you feel free to show your naivety anytime Re-Heat. I'm particularly intrigued by your suggestion that company has not been exposed to the market, given that it is exposed to competition on almost every route it operates from it's main base and further competition from other competitors operating from nearby airfields. Many of those competitors enjoy the benefit of state subsidies.

I'm also intrigued by what you consider to be a 'staff equilibrium'. Any particular group of staff your thinking about? How does subcontracting to company B help to achieve this staff equilibrium? Could it be that your idea sounds good but is in fact utterly meaningless?

How much profit do company B provide? What proportion of the overall company A group profit is that? Is it more than company A stands to lose with the loss of goodwill from its staff.

Company B can be as entrepeneurial as they like. They just have to do it on their own.

As you are so keen on market economics then perhaps you'd appreciate that scope is an ideal model of market economics. BA need a large body of pilots to fly their fleet. The incumbent body offer to continue flying on their current rates subject to an exclusive contract. Anybody on the market can come along and underbid and BA will have no problem operating their fleet.

Now if you want wages matched to supply I'll be the first to support it. Given that BA can't get hold of any type rated 747 or 777 pilots andthey're struggling to find 320 rated pilots I'll be loooking forward to the pay rise. Obviously missed the bits about wages going up by 20% in Asia and Emirates needing 1000 more 777 pilots.
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