Continuing management efforts to cut the European majors' operating costs are resulting in clashes with pilots at KLM, SAS and Alitalia. If pilots do not concede the need to reduce costs, carriers may seek alternatives.
KLM is insisting on a longterm programme to cut its aircrew costs, which on a block-hour basis are exceeded only by those of Swissair and Japan Airlines, says president Pieter Bouw. Issues cover all pilot costs, including pension scheme contributions, rest hours and pay. At presstime, the pilots had staged two six-hour strikes, costing up to $10 million each.
Bouw says failure to agree could result in fewer aircraft acquisitions and more route transfers to partner airlines. By the end of the year KLM plans to order up to $800 million of aircraft, including regional jets, widebody freighters and Boeing 747-300 replacements. The carrier is considering the transfer of more regional routes to partners such as Eurowings and Air UK, whose pilots are 40-50 per cent cheaper than KLM's, says Bouw.
At Alitalia pilots continue to refuse productivity increases on B767 flights and insist on salary increases and other concessions in working practices. Publicly the carrier says it is concentrating on negotiating a deal, but management has already wet-leased 767s and the role of Avianova is being increased.
At presstime SAS pilots were staging a 24 hour strike, but negotiations were due to resume. SAS says the strike is costing it SKr100 million ($14 million) a day in lost revenues. The pilots are asking for a 6.7 per cent pay increase; the company has offered 3.5 per cent.
Source: Airline Business
