Sabena's plans to shift pilots and cabin attendants to a Swissair payroll by 1 January, 1998, to reduce the Belgian carrier's airline's high labour costs, have been postponed. The hold-up threatens plans for the airline to return to profit by 1999.

Sabena secretary-general Patrick du Bois says that the move, which would cut labour costs by Bfr1.5 billion ($40.5 million), will not be possible on 1 January, 1998. The plan involves some 2,400 of Sabena's 9,766 employees and is a major goal set by Sabena president Paul Reutlinger to make the airline profitable following Swissair's purchase of a 49.5% interest in state-owned Sabena.

A previous proposal, under former president Pierre Godfroid, to relocate Sabena pilots to Luxembourg was opposed by the Belgian Government, although opposition has waned since then.

He adds that the idea is also controversial among pilots, cabin-crew members and unions. Most Belgian airlines hire European pilots, including Belgians, through specialist Irish or UK agencies to avoid Belgium's high social costs.

Source: Flight International