The US Department of Transportation in something of a stunning revelation has concluded that competition is actually good for the airline market.
While subtly trying to argue its case for Caps and the Slot Auction at the 3 major New York Airports - it released the results of its study of activity when competition is introduced into a market.
I am so glad our tax dollars are really at work effectively.
For further details go to the ATA - Air Transport Association of America site www.airline.org or the DOT website www.dot.gov. specifically the following page:
http://www.dot.gov/affairs/dot15908.htm
Joy!!!!
Showing posts with label ATA America. Show all posts
Showing posts with label ATA America. Show all posts
03 November 2008
07 September 2008
Are the job cuts enough?
According to the USA ATA - Airline Transport Association. They are about to shed 8% capacity and 36,000 jobs.
According to our estimates at T2 - the numbers are much higher with a capacity reduction of more than 10%. We have already determined that some airlines (such as United) have not announced enough personnel cuts to account for the reduction is capacity.
Ultimately we believe before the end of 2009 the capacity cuts could well be in excess of double this number. This would then lead to a reduction of almost double this number in staffing. A further round of off-shoring could occur particularly to Mexico. India has increased in costs to a point where off-shoring more functions are less likely there, indeed there is a trend away from this with Lufthansa for example ending one of its JVs in the sub-continent.
Food for thought
Cheers
Timothy
According to our estimates at T2 - the numbers are much higher with a capacity reduction of more than 10%. We have already determined that some airlines (such as United) have not announced enough personnel cuts to account for the reduction is capacity.
Ultimately we believe before the end of 2009 the capacity cuts could well be in excess of double this number. This would then lead to a reduction of almost double this number in staffing. A further round of off-shoring could occur particularly to Mexico. India has increased in costs to a point where off-shoring more functions are less likely there, indeed there is a trend away from this with Lufthansa for example ending one of its JVs in the sub-continent.
Food for thought
Cheers
Timothy
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