European Airlines Labour Costs
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European Airlines Labour Costs
Economist has published some numbers from a CAPA Consultancy study
SAS - 105,00 euros per employee per year = 32% of revenue
Norwegian AS - 95,000 eur - 64%
Air France - KLM - 75,000 eur -30%
IAG - 70,000 eur - 24%
EasyJet - 70,000 eur -12%
Finnair - 62,000 eur - 17%
Vueling - 55,000 eur - 8%
Ryanair - 50,000 eur - 9%
SAS - 105,00 euros per employee per year = 32% of revenue
Norwegian AS - 95,000 eur - 64%
Air France - KLM - 75,000 eur -30%
IAG - 70,000 eur - 24%
EasyJet - 70,000 eur -12%
Finnair - 62,000 eur - 17%
Vueling - 55,000 eur - 8%
Ryanair - 50,000 eur - 9%
The Norwegian A/S numbers are incorrect, % of revenue should be 16 % instead of 64, see graph in the article:
European airlines: Here come the Vikings | The Economist
European airlines: Here come the Vikings | The Economist
They are not exactly alone. That was Lufthansa's attitude to Air Berlin....better the devil you know. The Economist is a fantastic magazine by the way, very well written.
Of course one of the key problems with this kind of study is how much of the labour cost has been outsourced and therefore if fair comparisons are being made.
But the idea that a lot of airline jobs in high cost countries are eventually going to go offshore like the merchant marine jobs a generation ago seems obvious.
Of course one of the key problems with this kind of study is how much of the labour cost has been outsourced and therefore if fair comparisons are being made.
But the idea that a lot of airline jobs in high cost countries are eventually going to go offshore like the merchant marine jobs a generation ago seems obvious.
Last edited by lederhosen; 28th Apr 2013 at 11:19.
Well, if we believe some pundits around here claiming that crew cost are the largest and the most important ones to keep under control, then Croatia Airlines at 15% of revenue being splurged on workforce at 31 000 € per employee yearly (even with 49% of work cost being income taxes and social security contributions) is a prime example of well run airline. Legacy airlines all around the Europe must be trembling with fear in anticipation of the day this vigorous competitor enters the European market. 
Any idea where those low cost crews are supposed to come from? CIS and SE Asia, like mariners?
But the idea that a lot of airline jobs in high cost countries are eventually going to go offshore like the merchant marine jobs a generation ago seems obvious.
At least in Asia you can advertise for "young, attractive, single women with a pleasing personality" to work as flight attendants. Try that in Europe and see how long it takes before the anti discrimination mafia move in.
Asian flight attendants expect to provide customer service for their passengers unlike the American and European unionised employees who won't help you lift your bag into an overhead locker and expect to receive pay approaching that of the flight crew.
Asian flight attendants expect to provide customer service for their passengers unlike the American and European unionised employees who won't help you lift your bag into an overhead locker and expect to receive pay approaching that of the flight crew.
Its more about jobs being exported offshore. One example is Turkey where the airline industry is enjoying tremendous growth and the overall labour costs are much lower. You just have to look at who is ordering aircraft to see where the jobs are going, mainly to the middle east. The pilot's jobs are still reasonably paid but what do DNATA pay? Of course when some genius takes over at Emirates and opens crew bases in Jakarta, Shanghai and Mumbai things will get really interesting.
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Does anyone remember during the last boom a certain loco emblazoning their website with slogans like "europes highest paid pilots" and the offer of share options. Oh how times have changed.
