Quote:
Originally Posted by eaglefly
I recall reading labor costs were #2 behind fuel. Heck, considering present oil prices, they're probably now #1.
Rough estimate back when fuel was $3+/gal a 50 seat RJ cost around $2k/hr to run, an A320/B737 was up around $5k.
Includes all costs, direct and indirect.
You would of course have to reduce that figure by how much fuel has fallen nowadays, call it around $3500 for the B737 today everything else remaining the same.
So you can see even adding 20% to the flight crew hourly wage, while significant, doesn't effect the overall cost of the airplane by that much.
Labor costs may indeed by the #1 cost to an airline, but behind every two pilots are:
2-8+ FAs
2-3 Gate agents
5-10? ramp agents
Tons of Maintenance folks
??? Management
Training staff
Bean counters, payroll clerks, mail clerks, marketing, ticket agents, list goes on
Assuming pilots as a labor group make up ALL of the airline's labor costs is just incorrect.