Re: Big aircraft makers line up at Air Canada's door

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Labour costs a misconception eh?  Gee, I like reading the funnies on a
Saturday morning.  LCCs cut costs across the board, that's true but the two
biggest cost centres of any airline, be they full service or low cost, are
labour and equipment (aircraft). It ain't rocket science.

Grant
SYD
QF
Fan of debating with people who either know what they are talking about or
are prepared to listen.

PS I've mentioned this before but don't JetBlue consider themselves to be a
full service airline with a lower cost base? Can someone enlighten me on this?


At 01:24 PM 12/09/03 -0400, you wrote:
>In a message dated 9/12/2003 10:14:52 AM Pacific Daylight Time,
>mmontano@xxxxxxxxx writes:
>
><< Because the most profitable carriers have labour contracts which allow
>  them to fly bigger birds with cost-structures that only exist within
>  the regional 'arms' of the majors.
>
>  If Air Canada/United/USAirways/Delta had the per-seat-mile labour costs
>  that their subsidiary/affiliates have like AC
>  Jazz/AirWisconsin/Comair/Mesaba etc then they would be more competitive
>  (note I said more, not 'as') with the companies you mentioned. >>
>
>Um, WN is the most organized airline in the US (according to a captain no
>less) and their crews are paid on par with anyone else in the industry.  B6
>actually pays its F/As higher than WN (citing the fact that they are based
>in NY)
>and the pilots are competitive too (and if they want to keep unions out, they
>will soon get comparable to WN).  Labor cost is a misconception (come get me
>Grant, as you love to defend over priced carriers) as what keeps costs
>down for
>major low fare carriers in the US.  They keep costs down in other areas, like
>fleet commonality and catering

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