PPRuNe Forums - View Single Post - Should seniority be scrapped in airlines?
Old 28th Aug 2007, 16:13
  #196 (permalink)  
Hand Solo
 
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I'm afraid that it is you clutching at those straws Re-Heat. Your position has been that seniority is bad for pilots and bad for the airlines. Your position is that true meritocracy is the only alternative and that true meritocracies exist. The latter argument has been blown out of the water: your example firms have been found wanting in the meritocratic world and you have failed to offer a reasonable explanation of your ideals could be translated into a practical application in the real world, preferring to hang your hat on a cover all position of "thats what the HR department is for".

Now lets address your smokescreen of listing airlines operating margins. Yes of course absolute profit reflects absolute size, but operating margin is not the be all and end all of economic indicators. I could start an airline with a single Cessna 172, be the sole pilot, top (and bottom) of my personal seniority list. If I can make a healthy profit in the first year I could have a 50% operating margin. Thats a long way ahead of Ryanair. If I could simulate Asian living costs and standards by halving my pay I could probably be even more succesful by your measure. Does it mean I can be compared with Lufthansa? If not then why not? In your list you are attempting to compare Copa Panamian Airlines, Hainan Airlines and Air Wisconsin with Qantas! Like for like? Do me a favour. The operating margin of a small regional operator in the USA does not provide a meaningful comparator to a large, hub and spoke long haul airline.

You state that British Airways operating margin is particularly low. Well at the moment it wouldn't be too far off your top 20 and a 10% operating margin is pretty good in an industry like long haul which has such huge costs of entry (and which you will be aware that Ryanair are not in). In fact the only two carriers in this category are Qantas (good for them) and Emirates (if you can get the Emir to build you decent airports, fund your aircraft and grant you almost unlimited unopposed expansion opportunities then you should do well). And they both have seniority systems!

The information and arguments you have presented do nothing to show that seniority systems have a negative effect on airlines. You have yet to present anything concrete to support your argument. You have yet to present a workable alternative system to seniority. I've never said a seniority system makes an airline profitable. I've simply challenged your idea that a seniority system makes an airline unprofitable.


By the way, my data was out of date but I never pretended otherwise, thats why I left the date on it. It's purpose was to demonstrate how easy it is to post meaningless lists of irrelevant data in order to cloud the issue.
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