IAG: BA restructuring may cost 12,000 jobs
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In fact, BA was making €2bn profit with these same cost structures.
Last year was the second highest ever, I think.
That’s 2/3rds of IAG total profit, yet BA will take most of the ‘pain’.
One might also ask: Why should just the employees take the pain for poor fuel-hedging decisions that cost €1.3bn.
When will we see shareholders take some of that pain, eg, in a rights issue perhaps?
I think the Qataris can afford it.
And yes, as Mixed Fleet expands and Legacy retire off, the costs go down anyway.
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Good point from Huw on the beeb this morning.
He asked WW to make any terms cuts temporary until market conditions improve and WW outright refused - making it clear that this is not about the pandemic.
Also he referenced the legacy fares for LCC wages (and service particularly in Europe these days). How sustainable will that be at legacy fares.
He asked WW to make any terms cuts temporary until market conditions improve and WW outright refused - making it clear that this is not about the pandemic.
Also he referenced the legacy fares for LCC wages (and service particularly in Europe these days). How sustainable will that be at legacy fares.
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In fact, BA was making €2bn profit with these same cost structures.
Last year was the second highest ever, I think.
That’s 2/3rds of IAG total profit, yet BA will take most of the ‘pain’.
One might also ask: Why should just the employees take the pain for poor fuel-hedging decisions that cost €1.3bn.
When will we see shareholders take some of that pain, eg, in a rights issue perhaps?
I think the Qataris can afford it.
And yes, as Mixed Fleet expands and Legacy retire off, the costs go down anyway.
Last year was the second highest ever, I think.
That’s 2/3rds of IAG total profit, yet BA will take most of the ‘pain’.
One might also ask: Why should just the employees take the pain for poor fuel-hedging decisions that cost €1.3bn.
When will we see shareholders take some of that pain, eg, in a rights issue perhaps?
I think the Qataris can afford it.
And yes, as Mixed Fleet expands and Legacy retire off, the costs go down anyway.
We are kind of similar to WTI crude oil on April 20th. But our supply can't be so easily turned off.
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I wish you all well, these are nasty times. Sad to see those at the top of the organisation show their true colours.
Keep fighting, keep the unity and keep the faith. I look forward to hearing you all over the airwaves again soon.
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Unfortunately you're looking at rescuing what you hope is a secure and prosperous future. You're hoping for union or government intervention to make that happen. In the real, pure captitalist world, the market value of our profession as a "British Passport holding" Airline pilot has collapsed. There are experienced Captains out there right now that would bite your hand off for £20,000 per year. There are no expat jobs out there, there won't be jobs for British Pilots in Europe going forward. In the British socialist world, maybe we can prop up the salaries for a little longer.
We are kind of similar to WTI crude oil on April 20th. But our supply can't be so easily turned off.
We are kind of similar to WTI crude oil on April 20th. But our supply can't be so easily turned off.
I suspect that everything you just said in your doomcast email is wrong.
Look at all the airlines who are ramping up services for June and July (Wizzair, Ryanair, Turkish (no lay-offs), Thai (no lay-offs)), despite the illogical 14-day quarantine period.
Where is your evidence for experienced captains right now who would bite your hand off for £20k a year?
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I do not believe that for one second. Why would they even consider it? Far better to go earn £20k doing pretty much any other job and wait it out for a better flying salary.
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You guys are dreaming as well. Polax has it right. There'll be 1500 experienced longhaul Pilots coming from Emirates, largely European, most of those British. Another several hundred coming out of Qatar. Plus Saudia, Oman, Kuwait, possibly Flydubai and Etihad, all laying off 100+.
There are no expat jobs to go to in the far East.
Pilots will accept any money right now just to keep their licences current. They will not leave the industry.
There are no expat jobs to go to in the far East.
Pilots will accept any money right now just to keep their licences current. They will not leave the industry.
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Nobody wants that. But many pilots do not have much in terms of up to date transferable skills and at the end of the day need to put some food on the table and pay for a roof over their (and their families) head. Not everybody was sensible enough to build a rainy day fund that allows them to stay unemployed for more than a few months.
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Sure there will be a surplus.
What will the airlines do when things pick up?
Expansion, or do nothing?
And don’t forget the importance of air cargo.
Wizzair say their recovery will take 12 months.
Maybe a bit optimistic, but they have good liquidity.
I remember reading somewhere that pre-Covid, China alone were forecasting needing 5000 pilots PER YEAR.
What will the airlines do when things pick up?
Expansion, or do nothing?
And don’t forget the importance of air cargo.
Wizzair say their recovery will take 12 months.
Maybe a bit optimistic, but they have good liquidity.
I remember reading somewhere that pre-Covid, China alone were forecasting needing 5000 pilots PER YEAR.
You guys are dreaming as well. Polax has it right. There'll be 1500 experienced longhaul Pilots coming from Emirates, largely European, most of those British. Another several hundred coming out of Qatar. Plus Saudia, Oman, Kuwait, possibly Flydubai and Etihad, all laying off 100+.
There are no expat jobs to go to in the far East.
Pilots will accept any money right now just to keep their licences current. They will not leave the industry.
There are no expat jobs to go to in the far East.
Pilots will accept any money right now just to keep their licences current. They will not leave the industry.
I am not a pilot, but I do have a licence to work on aircraft, it too needs to remain current. However, if my salary drops to £20k I will definately be leaving the industry. I still need to pay the mortgage and if I can beat £20k doing a job that requires less skill and responsibility I'll take it for that kind of money.
A chap told me a story once about a negotiation within an airline. The mamagement stated directly to the reps that they should consider themselve lucky to have a job. The rep looked up and quietly said "Lucky to have a job? Listen pal, I choose to sell you my expertise, skill and experience, you are buying my free time"
It still applies today.
Good luck everyone, D-day is upon us.
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The issue is that most pilots aren't qualified for anything other than minimum wage work if they're not flying. That works out at less than £20k a year.
I wonder if licensed engineers may be in a better position with more transferable skills.
I wonder if licensed engineers may be in a better position with more transferable skills.
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I would like to think most if not all pilots have better forward thinking skills than a 2 year old who takes 1 sweet now rather than waiting and being rewarded with 4 sweets later. If they are not, then they only have themselves to blame. No way would I do my job for £20k a year.
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I would like to think most if not all pilots have better forward thinking skills than a 2 year old who takes 1 sweet now rather than waiting and being rewarded with 4 sweets later. If they are not, then they only have themselves to blame. No way would I do my job for £20k a year.
But what if the option was no job?. Lets say you have just been made redundant from a ME carrier and the only offer on the table is at BA Flight Crew starting pay (currently £26k I believe). Would you take that job simply to keep current and rack up the hours until the industry improves maybe in 3 or 4 years and then you can find something better - or would you leave the industry and do something else that you may not have any qualifications for and for which there may be no jobs available anyway in the current economic climate?
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But what if the option was no job?. Lets say you have just been made redundant from a ME carrier and the only offer on the table is at BA Flight Crew starting pay (currently £26k I believe). Would you take that job simply to keep current and rack up the hours until the industry improves maybe in 3 or 4 years and then you can find something better - or would you leave the industry and do something else that you may not have any qualifications for and for which there may be no jobs available anyway in the current economic climate?
This is what will happen unless the current BA crew tow the line. That will be very painful for them.
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But what if the option was no job?. Lets say you have just been made redundant from a ME carrier and the only offer on the table is at BA Flight Crew starting pay (currently £26k I believe). Would you take that job simply to keep current and rack up the hours until the industry improves maybe in 3 or 4 years and then you can find something better - or would you leave the industry and do something else that you may not have any qualifications for and for which there may be no jobs available anyway in the current economic climate?
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The point though is that plenty of people will accept those salaries in order to stay current and in the expectation of the good times returning a few years from now.
If you leave the industry, it's very difficult to return.
If you leave the industry, it's very difficult to return.