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CAPA TV | May 26, 2019

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Working With Unions To Achieve Optimal Outcomes

CAPA
  • On May 16, 2019

Airlines have limited options in removing costs in the face of downturn. One area for action is to revise network operations, even fundamentally redirecting strategy, particularly where new market directions are emerging, such as the impact of new aircraft types and new entrants. For this, management must ideally seek the engagement of labour, to ensure effective implementation.

With a great majority of costs both external and largely uncontrollable, reducing that one third of costs that relates to labour inevitably also comes under the microscope. In a reducing market there is often much pain to be shared, but intelligent and rational – ideally consensual – courses are available. These should take account of the short term need for action as well as providing that the patient will be healthy when it emerges from whatever surgery has been necessary to ensure survival.

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