Fuel costs vs Pilot costs
Excuse the figures as I read this story a couple of years ago, but the comparsion will be relative even if my figures are not exact.
The article stated that Southwest model recognised that fuel cost were "19%" of their cost while pilot wages were 3%. They decided that if they got the best pilots via paying them the best wages then the 3% cost that controls the 19% fuel bill would be a good investment.
SO... The 3% goes to 4% via attracting good pilots that fly efficently yet safely and the 19% went to 17% so win win.
Few years on I imagine fuel is a lot more % and pilot wages a little less.
OG
PS - Guy talking about no LCC fuel, airport fees etc is on the money.
PPS- Shermin, you have some really good points but at the end of the day it comes down to supply and demand. Airlines take advantage of this scenario when pilot supply is up so pilots would have poor 'business accumen' if they were not to act upon this situation when demand is up.