Aer Lingus hit by flat earth syndrome
This seems to represent a typical myopic stance that is the crux of Irish management/staff relations. The typical scenario is that contracting business and management requests a pay freeze and/or layoffs. This does not usually affect management at their higher remuneration level.
Profitability makes a fleeting return and immediately staff demand reward for their 'sacrifice,' thereby eroding the gains that have been made. What the aforementioned inhabitants of Flat Earth don't realise is that an aircraft must support itself aerodynamically and economically at the same time.
United Airlines, currently in profit but still in Chapter 11 protection, are enforcing 30%-50% pay cuts among its cockpit and cabin crews, as well as other changes. Singapore Airlines the world's best in terms of profitability, service and market capitalisation is the example to follow.
In response to SARS, management took a 27% cut and then got 16% from pilots and layoffs and unpaid leave for the cabin crew.
I would advise Willie Walsh and his board likewise to lead by example. This would make it difficult for militants to make demands when in nascent profitability. So, Willie, lead the way and take a slash!
David Connolly,
Aviation Consultant,
178, Avenue Louise,
1050 Brussels,
Belgium.
