Staff costs in focus while oil price is low

Airlines prepared for rising staff costs – and oil-price rebound
Airlines are likely to benefit from low oil prices for at least the duration of 2016, but they must be prepared for a fast rebound and rising staff costs, the news agency Reuters reports.
Industry leaders warn that although oil prices may fall even further, prices could bounce back quickly and unpredictably.
For now, non-fuel costs at airlines are in the spotlight, as they were for example at the recent Airline Economics conference in Ireland, highlighting the difference between legacy and low-cost airlines.
Staffing costs are likely to be the biggest source of costs at IAG in 2016, forcing it to look for solutions – such as a decision to move some office jobs to Krakow in Poland. By contrast, only 8% of costs at the eastern European low-cost carrier Wizz Air are staff costs.
“We compete with the likes of Ryanair, the most aggressive low-cost airline in Europe. We’ve got to have a cost base that enables us to compete in an effective manner,” IAG CEO Willie Walsh said.


Check Also

City Jet and Air Nostrum to merge, the consolidation in European aviation is on-going.

Irish City Jet and Spanish Air Nostrum join forces and when merged under a holding company it will emerge as the largest regional airline in Europe.

Laudamotion, Ryanair, buy, M&A, airlines, Austria, aviation, business, option, EU

Laudamotion, Ryanair and Lufthansa in dispute over aircrafts

The Austrian based Laudamotion and 25 percent owned by Ryanair is arguing with German giant Lufthansa over aircrafts not delivered after Air Berlin bankruptcy.

Ryanair, pilots, strike, Ireland, Forsa, union, management, talks, cancel, flights, July, UK

Ryanair pilots to strike despite talks

The walkout is being done by the carrier’s Irish-based pilots who are directly employed by the airline.

Ryanair, strike, dates, July, cabin crew, flights, attendants, demands, pilots, Spain, Italy, Portugal, Belgium, countries

Ryanair cabin crew reveal strike dates

Unions representing the low-cost carrier’s employees in four European countries announce strikes in late July.

Montpellier-Méditerranée Airport, european commission, investigation, ryanair

EU to investigate Ryanair airport deal

The European Commission has “concluded on a preliminary basis” that the deal involved illegal state aid.

Ryanair, strike, VC, Germany, pilots, agreement, talks, countries, airline, low-cost, Ireland, Sweden

Ryanair pilot strike to go ahead

Pilots vote to strike in Ireland, and other European countries – including Sweden – could follow.