Déjà vu?

An article in yesterday’s Sydney Morning Herald says Qantas was preparing to “smash” its aircraft engineers union by bringing in recruits trained in Malaysia.

Seems Qantas has hired Newport Aviation to recruit highly trained licensed aircraft maintenance engineers. Fixed-term casual positions pay $2,308 a week with the possibility of a $40,000 completion bonus.

Today, Qantas engineers cancelled plans to strike tomorrow. The Australian Licensed Aircraft Engineers Association (ALAEA) had been calling for a 5 percent wage increase per year while the airline has steadfastly refused to budge on its 3 percent offer. Today the union said the association would accept a rise of between 3 and 5 percent.

Earlier today, Chief Executive Geoff Dixon refused to rule out the use of strike breakers if negotiations again falter. One would hope negotiations will prevail.

 If you went through the Northwest strike what would you say to Qantas maintenance engineers? What would you say to Dixon?

For the newspaper article click here
http://business.smh.com.au/qantas-prepares-to-smash-strike-20080514-2eat.html

Thanks for reading.

Barb Zuehlke

Managing Editor

 

A Look at Financial Statements

A lot of companies have released financial reports in the last week or so. With companies and airlines suffering from fuel costs and other factors, entire routes are being eliminated, and daily flights are being trimmed:

US Airways cut 10 routes from its Las Vegas hub effective Aug. 19.

American Airlines says it will stop serving Oakland International Airport.

JetBlue is looking at shorter flights instead of focusing on long-haul flights.

What is your company doing to compensate for financial losses? Are you forming new alliances within the industry? Selling assets? Raising prices for services? Is the focus on the customer or the bottom line? We’d like to hear from you.

Thanks for reading.

 

Airlines Can Be Profitable

According to a press release from Emirates, it has achieved its 20th consecutive year of net profit, in spite of soaring fuel costs and challenging business conditions. For the full release click here.

• Group net profits increased 54.1 percent to $1.45 billion for the financial year ending March 31, 2008, on revenues of $11.2 billion compared to the previous year’s $8.5 billion.

• The Group net margin improved to 13.2 percent from 11.4 percent in the previous year.

• Emirates will pay a dividend of $272.5 million to its owner, the Government of Dubai.

• In 2007-08, the Group estimates a direct contribution of $6 billion, and another $6.8 billion in indirect contribution to the UAE economy.

It claims its success is based on ongoing investments in the latest technology, products, and customer service while keeping a tight rein on costs.

And it doesn’t plan on resting on its laurels but plans on continuing to provide its customers with the high quality experience that they have come to expect.

It’s the same with AMT. Thanks for reading.

Barb Zuehlke