View Single Post
Old 02-19-2006, 10:04 PM
  #8  
rickair7777
Prime Minister/Moderator
 
rickair7777's Avatar
 
Joined APC: Jan 2006
Position: Engines Turn Or People Swim
Posts: 39,286
Default

Originally Posted by ERJ135
How would labor conditions change?
This is not directly true. The current propsed changes regarding foriegn ownership would only allow a higher (perhaps even controlling) percentage ownership in US airlines by foreign nationals and corporations. These foreigners would still have to play ball according to our rules...they would like to cut labor costs, but they have no more ability to do that than US managers currently do.

The potential long term threats are these:

1) Cabotage: This means that a foreign airline stops at more than one US destination to drop off/pick up passengers. Basically a foreign airline (with potentially REALLY low labor costs) could provide domestic US service. They would be able to undercut even SWA. This is illegal and is not likely to change soon for national security and safety concerns. Foreign airlines can obviously serve US cities from their own country (and possibly other countries), but they can only make one stop (well they can stop for fuel, but they can't pick up passengers at the fuel stop)

2) A foriegn owned US flagged domestic airline (Virgin America) might possibly try to hire really cheap foreign labor, but this is unlikely to fly politically. We already have WAY too many foreign nationals with visas or green cards flying US equipment as it is (while tens of thousands of US pilots are furloughed). I'm sure ALPA could get that shot down in congress.

3) Outsourcing: US Major airlines could outsource their own flying to a foreign-flagged airline. The foreign company would provide and fly the airplanes, which would be painted in the colors of US Major airlines. This is the next big objective of our major airline mangers in their crusade to rape and pillage the industry. It is very possible to see international flights sold under the colors of a US airline, but will require some new laws to get the domestic operations going. This would replace most US pilots with foreign pilots. There are obvious national security problems to this.

NWA is replacing US flight attendants on international flights with local FA's from the foreign destination (They work for far below US minimum wages). The next step would be pilots and then the airplanes. The US majors have very powerful brand names, but if they can paint their name on a foreign bird and sell the same product at much lower cost, they will not hesitate. Write your congressman.
rickair7777 is offline