Unions
I had a conversation with a guy in line at the post office the other day. He was a retired union Freightliner factory assemblyman. He told me that when he retired in 1997 his hourly cost to the company was $57. Now the company is moving most of the manufacturing down to Mexico due to the reduced costs.
Alaska Airlines has already thrown the mechanics and rampers to the curb. They seem to be setting their heels for another fight. No company is so secure that they can afford costs that are higher than their competitors. Every company is in a race to match costs. Alaska Airlines is no different.
Customers don't care. They only want to get there at the cheapest price. The FAA insures that most are equivalent in terms of safety so what then does a big fancy airline have to offer that a Skybus can't?
Like a pack of ravenous mice the LCC's are gnawing away at the base of the establishment. Undercutting once strong and competitive companies.
In the end everyone will have to sink to the lowest common denominator or risk loosing their jobs. The best a union can do for its workers is an organised retreat.
Skyhigh