Question

•Most airline economists believe that airline labor, especially pilots, have traditionally been overpaid relative to comparable positions in other industries. How and why have airlines reduced labor’s compensation and how have labor relations been affected?

Answer 1

How and why have airlines reduced labor’s compensation and how have labor relations been affected?

• Airlines have drastically reduced labor’s compensation in the last few years
• Due to which the pilots are going to vote on contains pay increases in the range of 40-50% at the top end
• Aircraft Fuellers get around $10 per hour, which is very less in todays scenario
• Pilots have resorted to strikes for their demands, thus labor relations getting affected
• Delta and Southwest airlines which boasted of efficient labor relations are also going through a turmoil
• top level pilots are better compensated than most analysts and middle management at airlines