PPRuNe Forums - View Single Post - UK - NATS Pay negotiations - latest rumours
Old 11th Oct 2010, 12:46
  #1527 (permalink)  
Me Me Me Me
 
Join Date: Dec 2003
Location: Home
Posts: 234
Likes: 0
Received 0 Likes on 0 Posts
It it were "my business" I would not have bid for contracts that are not making any real return if what I have heard is corrrect.
That's a delightfully optimistic way to describe a LOSS!
It's not always as back & white as that though. some of the loss-making contracts are worth keeping due to the effect they have on the other marginal ones when you look at the overall picture.

Corporate overheads are a cost spread accross all of those contracts. The fewer you have, the larger the portion each one is "burdened" with. Drop one loss-maker and you might find 2 that are currently just about breaking even will become loss-making.

Hence the way they are attacking those overheads with such enthusiasm!
Me Me Me Me is offline