easyjet failing to control costs
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easyjet failing to control costs
Once more I sit in the crew hotel at Luton looking at all the night stopping crew at our main hub. How much is the farcical rostering at easy costing the airline? Are the shareholders aware of the waste that is going on despite all the management blatherings about how we must control costs. POPPYCOCK. The AGM will be a very interesting meeting if questions are raised about how the rostering team in this airline are costing MILLIONS.
Some examples,
LTN crews being nightstopped away from LTN for up to a week at a time as too high on hours to operate rosters at LTN and therefore crews from other bases nightstopping LTN to operate all the holes created. Cannot imagine Ryanair doing this.
A taxi bill that runs to hundreds of thousands positioning crew to bases for single trips or more because the Crew Resource Planning Group cannot do thier job properly
A training bill that is costing millions as crews vote with their feet after consistently feeling undervalued
Why have easy signed up for this 100 million, yes 100 million pilot training contract in New Zealand? Why not improve conditions and attract people? Quite frankly the cadets are below standard and a lot were chopped. Then they were subsequently brought back. More costs for training
The waste in this company is staggering but I believe it is hidden from the senior management. Passenger figures are released this week. That should have a direct correlation to profit but then again so do costs. Surely somebody is asking the questions about why we have all these costs but similar costs do not appear in Ryans books.
Some examples,
LTN crews being nightstopped away from LTN for up to a week at a time as too high on hours to operate rosters at LTN and therefore crews from other bases nightstopping LTN to operate all the holes created. Cannot imagine Ryanair doing this.
A taxi bill that runs to hundreds of thousands positioning crew to bases for single trips or more because the Crew Resource Planning Group cannot do thier job properly
A training bill that is costing millions as crews vote with their feet after consistently feeling undervalued
Why have easy signed up for this 100 million, yes 100 million pilot training contract in New Zealand? Why not improve conditions and attract people? Quite frankly the cadets are below standard and a lot were chopped. Then they were subsequently brought back. More costs for training
The waste in this company is staggering but I believe it is hidden from the senior management. Passenger figures are released this week. That should have a direct correlation to profit but then again so do costs. Surely somebody is asking the questions about why we have all these costs but similar costs do not appear in Ryans books.
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Luton are maxed out duty and flight time, but that was always the plan, then bring in the crew from the bases that dont fly as much even with the nightstopped it still cost less than having crew sitting around. You do the maths it works, but (and its a big but) what happens when all the crews max out?
So you have flown with the cadets? Ok it,s true standard have gone down but in 2 to 3 years these guys will be up to standard in the mean time we have to keep on our toe, could be worst we could get guys from former eastern europe (but they all failed the sim). It is getting harder to find pilot and we have got to the bottom of the barrel. Look at Ryanair they are now offering eJ pilots £30,000 to jump ship! I,ll have to take a look at that myself...
"Surely somebody is asking the questions about why we have all these costs but similar costs do not appear in Ryans books."
Simple better management , but Ryanair have problems too and the staff hate working for mol
So you have flown with the cadets? Ok it,s true standard have gone down but in 2 to 3 years these guys will be up to standard in the mean time we have to keep on our toe, could be worst we could get guys from former eastern europe (but they all failed the sim). It is getting harder to find pilot and we have got to the bottom of the barrel. Look at Ryanair they are now offering eJ pilots £30,000 to jump ship! I,ll have to take a look at that myself...
"Surely somebody is asking the questions about why we have all these costs but similar costs do not appear in Ryans books."
Simple better management , but Ryanair have problems too and the staff hate working for mol
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I tend to agree with the opinion stated above about the wastage at easyJet and side with NSF that dontdoit is an idiot.
However, there is some wastage at all airlines and easyjet may be a little worse than most given the required positioning for flight and cabin crew, but has really got most of it's costs under control.
What it may not have under control is it's revenue. Virgin are currently charging a fuel surcharge of £48 per seat and under the current remarkable prices this is not unreasonable. Other carriers are doing the same and the average "joe public" probably also feels that this is fair. After all, if they go bust under the weight of staggering fuel-related debt, nobody wins.
The prices easyjet charges are still comparitively low (if you book early enough) or catch a flight at an unpopular hour, so £5 over 25 million customers would more than restore the balance.
The problem for me is that the 2005 pay review is due and is the company going to say that they cannot even afford even CPI becaue fuel costs are so high? Are the hardest working flight (and cabin crew) in the industry going to subsidise the companies profitability again just to satisfy the management?
Having made gains with many areas this year in cost control, the city was advised the profits this year would be similar to last; i.e the fuel cost balancing the savings. But the crews are working harder (and leaving faster) so it will be interesting to see the line of attack that easyJet uses to keep us moving towards the minimum wage!!!
However, there is some wastage at all airlines and easyjet may be a little worse than most given the required positioning for flight and cabin crew, but has really got most of it's costs under control.
What it may not have under control is it's revenue. Virgin are currently charging a fuel surcharge of £48 per seat and under the current remarkable prices this is not unreasonable. Other carriers are doing the same and the average "joe public" probably also feels that this is fair. After all, if they go bust under the weight of staggering fuel-related debt, nobody wins.
The prices easyjet charges are still comparitively low (if you book early enough) or catch a flight at an unpopular hour, so £5 over 25 million customers would more than restore the balance.
The problem for me is that the 2005 pay review is due and is the company going to say that they cannot even afford even CPI becaue fuel costs are so high? Are the hardest working flight (and cabin crew) in the industry going to subsidise the companies profitability again just to satisfy the management?
Having made gains with many areas this year in cost control, the city was advised the profits this year would be similar to last; i.e the fuel cost balancing the savings. But the crews are working harder (and leaving faster) so it will be interesting to see the line of attack that easyJet uses to keep us moving towards the minimum wage!!!
Last edited by Colonel Klink; 9th Sep 2005 at 18:04.
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webstir
Not the case at Ryanair because a/ they can work longer FDP's and weekly duty than EZY and b/ they are not rolling over aircraft types from B737 to A319 with the subsequent disruption. This is let alone lack of crew etc, do you really think they do it deliberately
Not the case at Ryanair because a/ they can work longer FDP's and weekly duty than EZY and b/ they are not rolling over aircraft types from B737 to A319 with the subsequent disruption. This is let alone lack of crew etc, do you really think they do it deliberately
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could be worst we could get guys from former eastern europe (but they all failed the sim).
Just like with everything else in life, you can't lump them all in one basket. You've got weenies in the cockpit and so do we. Your weenies are not better or 'worst' than our weenies.
Jeeesh, I must be getting old 'cause this is starting to sound politically correct.
And I'll go check the temperature in hell because I can't believe I am actually defending our weenies.
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Profits boost for EasyJet
UK budget airline EasyJet stuck by its profit forecasts today after revealing it carried 18% more passengers last month than a year ago.
The group, which has its main base at Luton, said 2.9 million people flew on its planes during the month, boosting the figure for the year to August to 29.2 million.
Last month, EasyJet put investors on standby for profits of around £62.2m (€91.7m) – in line with last year – after showing fresh signs that it was winning the battle to offset higher fuel bills. It had previously told the City that it was unlikely to match its 2004 profits haul.
Chief executive Ray Webster said today that the firm was maintaining this guidance and said: “August was another strong month for easyJet.”
Today’s figures were in contrast with data from British Airways, which said earlier this week that it carried 3.9% fewer passengers in August when its operations at Heathrow were paralysed by wildcat strikes.
EasyJet has grown its network to more than 187 routes and 57 airports using 103 aircraft. As well as its base at Luton, it has sizeable operations at Bristol, Edinburgh, Stansted, Gatwick and elsewhere.
The group said last week that Andrew Harrison, the former boss of the RAC motoring organisation, will take over as chief executive from Mr Webster in December.
The group, which has its main base at Luton, said 2.9 million people flew on its planes during the month, boosting the figure for the year to August to 29.2 million.
Last month, EasyJet put investors on standby for profits of around £62.2m (€91.7m) – in line with last year – after showing fresh signs that it was winning the battle to offset higher fuel bills. It had previously told the City that it was unlikely to match its 2004 profits haul.
Chief executive Ray Webster said today that the firm was maintaining this guidance and said: “August was another strong month for easyJet.”
Today’s figures were in contrast with data from British Airways, which said earlier this week that it carried 3.9% fewer passengers in August when its operations at Heathrow were paralysed by wildcat strikes.
EasyJet has grown its network to more than 187 routes and 57 airports using 103 aircraft. As well as its base at Luton, it has sizeable operations at Bristol, Edinburgh, Stansted, Gatwick and elsewhere.
The group said last week that Andrew Harrison, the former boss of the RAC motoring organisation, will take over as chief executive from Mr Webster in December.
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They say that their load factor dropped by 0.2 percentage points from 88.6 to 88.4%. Doing the maths it means that while passengers rose at 18.0%, available seats rose slightly higher 18.3%.
Mind you yields and the respective costs are more important.
Mind you yields and the respective costs are more important.
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What those passenger stats mean is that easyJet is doing great. There are a whole lot of other airlines out there that would love to emulate what we are doing but cannot.
Not for the first time I find myself in agreement with Colonel Klink that there are some serious issues to be dealt with regarding terms and conditions. Nonetheless, I am hopeful that common sense will prevail and that our CC will not accept a duff deal.
Not for the first time I find myself in agreement with Colonel Klink that there are some serious issues to be dealt with regarding terms and conditions. Nonetheless, I am hopeful that common sense will prevail and that our CC will not accept a duff deal.
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WHAT´S this training contract in NZ about?? WHAT is really going on with that pay review, have heard NOTHING??!! Any rumours??
I think we´ll get NOTHING, but would love to be proved wrong....
/CP
CaptainProp,
Are you in BALPA? We recieved a very proffestionaly prepared presentaion outlining our present position and aspirations, and it has been discussed on the Website.
Are you in BALPA? We recieved a very proffestionaly prepared presentaion outlining our present position and aspirations, and it has been discussed on the Website.
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Capt ,
ASSume the position and get ready cos here it comes sooooon.Heard easy are a well off company but you will never be privvy to the real story as usual.The CC could take a leaf out of the Virgin deal a couple of years ago ,they were offered bugger all and came out a winner,why?cos the pilots stuck together !!!From what i hear that won't happen in easyjet,too many people from over the water willl be protecting their position and future (Commands).
ASSume the position and get ready cos here it comes sooooon.Heard easy are a well off company but you will never be privvy to the real story as usual.The CC could take a leaf out of the Virgin deal a couple of years ago ,they were offered bugger all and came out a winner,why?cos the pilots stuck together !!!From what i hear that won't happen in easyjet,too many people from over the water willl be protecting their position and future (Commands).