tailieunhanh - Business in Airline (Second edition): Part 2

Continued part 1, part 2 of the document present assesses alternative strategies which could help airlines survive and succeed in a period of uncertainty and structural change within the industry. The doyen of commentators on the airline industry and this second edition of his definitive book on the subject brings the story up to date. This document will be of interest and value to all those working in aviation and to students studying transportation economics or business strategy. | 5 Labour is the key In addition to increasing productivity airlines must exercise control over the single biggest cost category employee cost. Fred Reid President Delta Airlines Airline Business March 2003 The importance of labour costs Airline executives had for long held the view that labour costs were largely outside their direct control. They thought of labour as an input whose cost they could only influence marginally. Strong unions especially in government-owned airlines and union power in the privately-owned US carriers made managers wary of taking drastic action to reduce labour costs. The threat of strikes hung over them like the sword of Damocles. Their views of labour began to waver in the early 1980s but it was the crisis years of 1990 to 1993 that really changed attitudes. The pressure to reduce costs intensified as losses mounted. This pushed airline managers for the first time to consider labour as a variable cost which they could and should influence. This could be done by cutting staff numbers by holding back wage increases or even reducing wages and by changing working practices. Several European airlines were actually given government funding the so-called state aid to help them implement such measures see Chapter 8 Section below . In the United States some airline executives extracted major wage concessions from their employees by offering them share options in their airline. Since the early 1990s airline executives have become very aware that controlling labour costs is the key to cost control and cost competitiveness for two reasons. First because labour has become the largest single cost element for their airlines. In the early 1980s following the second oil crisis of 1978-9 the cost of fuel had risen to 30 per cent or more of total costs. For most airlines it surpassed labour as an input cost. Those days are long gone. As the price of aviation fuel declined significantly in real terms during the 1980s labour costs became increasingly

• Kế hoạch kinh doanh
• The airline business
• Labour is the key
• The low cost revolution
• State owned airlines
• Strategies for survival
• Airline marketing
• Airline management
• Airline marketing and management
• Airline business and marketing strategies
• Market for air transport services
• Travel marketing
• Tourism economics
• Airline product
• Airline business
• Airline schedules planning
• Aircraft operating costs and profitability
• Beyond the crisis
• Trends and challenges
• Towards open skies
• Beyond open skies
• Nature of services
• Service quality of airline services
• Dimensions of service quality
• Quality of service
• Fast changing business environment
• Flying on business
• UK business air travel market
• UK business air travel
• Travel management companies
• Airline competition for business passengers
• Managing business travel
• taxing business
• airline reservations
• the fact patterns
• business models
• pricing methods
• business profits