Prediction On Airlines...
Here we go...
Wave of Airline Strikes Sweeps Europe
The showdowns with unions come as European airlines, hurt by falling revenue and an uncertain economic outlook, have taken a hard line on costs. Formerly state-run airlines are having to compete with nimbler low-cost rivals like Ryanair and easyJet in their regional businesses, while battling Middle Eastern and Asian carriers for intercontinental traffic.
“The biggest issue for the European flag carriers is labor costs,” said Stephen Furlong, an airline analyst at Davy Stockbrokers in Dublin. “Only fuel eats up more of their revenue. So to close the gap, they have to restructure or consolidate.” The carriers, he said, had reached a point “where labor is pushing back.”
posted by Weaseldog @ 10:27 AM
4 comments
4 Comments:
“The biggest issue for the European flag carriers is labor costs,” said Stephen Furlong, an airline analyst at Davy Stockbrokers in Dublin. “Only fuel eats up more of their revenue. So to close the gap, they have to restructure or consolidate.” The carriers, he said, had reached a point “where labor is pushing back.”
They never mention executive compensation, interest on debts, advertising, or political payoffs.
you're right Edgar, they don't.
Everything will shrink for a long time.
No greenshootism!
How did they keep the government-owned "flag carriers" in business in the old days, when flying was less frequent (and populations were smaller)? I reckon we'll go back to that again. Fewer airplanes, less air travel, not as many air-industry workers, just a more 1960s way of living. Welcome to the shrink-down. Life was not wearing fur loincloths and sleeping in unheated caves during the 1960s, so what's the prob? Flight attendants, baggage handlers, aircraft mechanics... they'll have to shift to new work -- maybe on train systems? -- but everybody's getting screwed in the new world we'fe being dragged into.
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