British Airways Rev...
 

British Airways Reveals Cost Of Pilot Strike

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International Airlines Group (IAG), the parent company of British Airways, has today updated their 2019 operating profit guidance based on recent events. As we know, British Airways has been having labor issues with BALPA, the union representing their pilots. The union had announced a full three days of strikes, on September 9 & 10, and…

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8 Replies
(@niko_jas)
Joined: 11 years ago

Posts: 337

Of course the additional cost to passengers in terms of hotel rooms lost, holidays rearranged and so on doesn't figure in their costings.
Glad to see that BA quote that Vueling's 'forward booking trends have deteriorated'. Once you've been Veulinged you wont fly them again!


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(@Noah Bowie)
Joined: 9 years ago

Posts: 246

90% of BA's staff accepted the (rather generous) 11.5% pay rise. This is just BALPA selfishly thinking that due to their size representing the vast majority of pilots, they had a solid negotiating position. Apart from the fact that BA were having none of their extremely unsustainable demands. This is what happens when unions become too powerful. They begin to act like a child who demands incredibly unrealistic things and then when it doesn't happen throws a tantrum and chucks all of their toys on the ground. If BALPA represented a smaller number of pilots this strike would never have happened. Unions are better represented when there are several smaller ones rather than a huge and cumbersome one dominating the field. Therefore more views can be expressed and it's easier to compromise. Something which BA has a reputation of avoiding.

This whole negotiating thing is starting to remind me of another pointless debate happening in the UK. Brexit anyone?


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 Ben
(@Ben)
Joined: 12 years ago

Posts: 16

Noah, how is 11.5% over 3 years generous (particularly for a company making huge profits at present) - it's not hugely over inflation.

Other national carriers in Europe offer a profit share scheme, BA do not wish to offer this to their pilots which is a major part of the dispute. IAG can afford this, but they choose not to. Profit sharing schemes make sense, particularly in a highly cyclical industry such as aviation. It also helps to align corporate and employee objectives.


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 Fury
(@Fury)
Joined: 7 years ago

Posts: 3

I hope BA will disappear. Its an embarrassment.


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(@Christian)
Joined: 12 years ago

Posts: 847

IAG is wildly profitable but just doesn't want to share the wealth. This is shortsighted at best. I loathe Delta, but among the things they do very well is to motivate their people through financial incentives including profit sharing. IAG would rather lose money.


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(@Rob in Canada)
Joined: 9 years ago

Posts: 17

I wonder how the 135 million Euro losses already accrued by BA stack up against what it would cost to give the pilots more than what has previously been offered?


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(@Malcom)
Joined: 7 years ago

Posts: 1

BA should now not employ any pilots that are a member of BALPA and their new contracts should ban membership. The BALPA bosses should be thrown in jail. Pigs gourging from a trough, no rudeness meant to pigs, as unlike BALPA members, they are highly intelligent and social beings.


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(@Foxbat)
Joined: 7 years ago

Posts: 1

Rob - according to the Guardian the difference between BA and union positions is 5 million pounds annually according to the union, 50 million according to BA


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