Jester
Veteran
Just proves me right that its not about wages, even Rez said so, its about airport fees and real estate, that should not be our problem, the company should be negotiating with the airport better rather than laying us off.
It worked really well for PIT, didn't it? Pretty much all airport authorities are non-profit governmental agencies with varying degrees of break-even points based upon various factors like construction bonds, labor costs, size of operation, utilities, etc. Demand all you want, but the airport authorities are not agreeable to go into the red so the airline employees don't need to take a pay cut.
Frankly, labor costs are the easiest part of expenses to reduce as aircraft leases are long-term, airport lease rates are inflexible, and the price of fuel is uncontrollable (beyond expensive hedges which don't always work for the best). Low-skilled, or at best, semi-skilled, positions are the most easy to cut, especially during a deep recession where plenty of people are will to do our jobs on the ramp for half the contractual rate and why scope clauses are so important.
It might be said if West was still working under its old TWU contract that the LAS hub would still be operational as the wage scale under the TWU contract wasn't much better than the Swissport rate. However, few in the West were willing to accept a two-tier payscale between East and West. Even if LAS was DOA regardless of wages, the Tempe Boys would have been able to reduce flights and eliminate positions under the TWU or IAM contract. See how well the TWU contract protected CMH from being de-hubbed.
So Surmises Jester.