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[BBC News] Airline imposes staff salary cuts


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Difficult to say. I,d rather have a 7% pay cut than lose my job. I think as long as things were transparent and explained properly why this is this best option out of crappier ones and was confident my pay cut was not paying for someone else,s pay hike (which doesn,t appear to be the case) then although would not be happy but knowing people who have lost their jobs would regard this as a better alternative.

 

General point - applies to all airlines a bit of an old chestnut. Whilst Air Aerran prices do not seem particularly high (but the £39 flight to London City is a myth) (c/f Eastern Airways £301.50 return to Newcastle) whenever I have flown with them planee has been about half full. Would fly with them more if flights were cheaper (I honestly would) = more revenue=more profits= more money for salaries. Anyway that's all been done to death in these pages before.

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General point - applies to all airlines a bit of an old chestnut. Whilst Air Aerran prices do not seem particularly high (but the £39 flight to London City is a myth) (c/f Eastern Airways £301.50 return to Newcastle) whenever I have flown with them planee has been about half full. Would fly with them more if flights were cheaper (I honestly would) = more revenue=more profits= more money for salaries. Anyway that's all been done to death in these pages before.

 

It may have been done to death before, but it is worth revisiting the economics again. As an example, if the £39 fares were more readily available, they would not only be available to you, Voice, but also to those who were prepared to pay, and did pay, say, £100 to travel. Say the aircraft was a 50 seater, revenue at higher fare with 50% occupancy = £2,500; provided that every seat were sold, the maths is 100% at £39 = £1,950. Simplistic example I know, but it is not an easy call on fare levels. The airlines have many years of experience and probably sophisticated computer systems to help them!! It is easy and natural for us punters to want lower fares, but the airlines have to charge what they believe gives them the best result.

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