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Old 4th Nov 2007, 01:15
  #360 (permalink)  
vs_lhr
 
Join Date: Nov 2007
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If you think Virgin will come out of any strike action unscathed, you are seriously deluded. The mere hint of a ballot on striking has sent the frequent flyers on V-Flyer into a tail-spin - and because this is now all over the media, you can be sure as eggs is eggs the same thoughts are going through the minds of thousands of pax who are thinking 'don't screw up the trip I've been saving for all year'. Corporate travel planners will be calm about the whole thing, though. They'll simply switch their booking to BA 'just in case'. Then, if the strike ballot comes back a 'yes' as you so gleefully predict, the situation will be the same, only magnified by ten.

Take the average load today, and reduce it by a conservative 10% for the fear and uncertainty of a strike. For simplicity's sake, call it 30 passengers. What's the average turnover on those 30 seats across the three cabins? Well, let's keep it simple and say they were all in Y, and they were a very reasonable £300 a piece. That's £9K you've lost on that flight. Multiply that over 80 flights a day. £720K. Then let's look at the profit reported last year. It was a "record" according to the press releases, of £41.6m. Conservatively, the impact of a threatened or real strike would have an impact on the airline for at least 3 months - and that would be working hard to get back pax who deserted, or even directly effected by industrial action. That 10% downturn for just 3 months would cost the company £64.8m in turnover - so on last year's figures, they're already £23m in the red - and that's using very conservative figures which don't account for an actual strike or the long-term loss of corporate accounts. How many jobs would need to be cut just to break even?

Don't be fooled, this strike - and even just the possibility of it - is going to cost the company dear, and unless it can be nipped in the bud pretty damn quick, there will have to be a lot of cutbacks to stay afloat.

You are offering no evidence that the company can afford this, but you are being very cavalier with the livelihoods of others.

You seem to forget, when 'Dicky' won the dirty tricks court case, he gave the proceeds to the staff.
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