Bottom line
Why do some on this forum and Qrewroom continue to make the claim that pilots are an insignificant cost? And that these costs have no bearing on business decisions?
There is no point arguing over what percentage pilots make up of the total cost. You need to refer to the profits.... The bottom line.
Qantas recently made a $203 Mill half year result.... THAT is the bottom line.
The simplistic goal of management is to increase this number. It's done with a holistic view. Why should the pilot group be immune?
As an example if management can achieve a 25 mill saving from their pilots (Yes I know...number from thin air but I assume this figure would be very easily achieved and will more then likely achieved with the new agreement) then this would result in a 12% increase over the bottom line. Even with this very conservative and simplistic example PILOTS MAKE a difference to the business case.
So please people... stop referring pilot costs to the over all cost of an airline. A more accurate way of determining the impact of pilots costs make on the business is with reference to the bottom line.... Have I said this too many times already?
Having said that it's common knowledge the current LH award is way out of sink with the industry. The mind set of management in recent years is to silo every cost within the business into components and make sure it matches (or does better) then it's competitors. Whilst the cost of equipment fuel etc can't really be controlled, the cost of labour can. I believe management will achieve this with or without its current pilots. Get on the bus or get run over.
AJ defines what is an acceptable cost base..... Not the pilots... Not even by pilots who claim to have all the numbers that prove pilots costs are irrelevant. Further AJ will achieve the cost base he desires even if a bunch of long haul pilots don't like it.
If the pilot costs are not important to management or the decisions that they make.... Then it's seems they have gone to an awful lot trouble over the years in pursuit of reducing them for what reason? Just so that can get one over us? So they can give us the pineapple? So they can trick us into less? If this is the way you think then you are listening to your ego. Think instead like a businessman. Think about your are own career. What is on offer (here and else where). No point thinking about what was or should have been. But rather what the reality of the situation is.
We have an opportunity to be get involved.
From what I understand of the new deal.... ( especially when compared to what's on offer at other airlines) it's seems a very reasonable deal.
Last edited by C207; 1st Jun 2015 at 12:43.