Originally Posted by
Going Boeing
Moa999, you are right that, geographically, crews based in NZ can have far more efficient patterns than Aus based crews and, coupled with the significantly lower wages, you would expect it to be the best option. Unfortunately, the cost of the Jet Connect operation is higher per sector than equivalent sectors in Australia and has been of concern for a few years. I don't know where the cost problem is, but it may be due to the high turnover of staff as well as the lack of "economy of scale". I don't think that JC will be closed down but there is definitely pressure to drive down the costs.
A 737-800 burns the same amount fuel per hour, requires the same maintenance and the same spare parts regardless of what rego' son the tail.
Jetconnect's cost savings is mostly Labour, with some added benefit of being Auckland based. No doubt they also stay in cheaper hotels than mainline?
Out of those reduced costs, they have to pay for a separate AOC, separate training department, multiple layers of management and operations, while having a higher turnover of staff increasing training costs.
How much is driven by Labour costs and how much is an industrial threat to keep mainline pilots in check?