We have all become used to the idea of flying when and where we please, with an estimated figure of over 76,000 flight departures per day globally in 2006. While the industry has been hit hard over the past few years – and can be affected by fuel surcharges and adverse weather conditions – one thing that the airlines have had to deal with on a consistent basis is labour unrest. Strikes cost the industry millions every year and leave a lasting public relations impression that is hard to shake off.
Qantas very recently dealt with this issue and in part, because of the need by the flying public to know whether or not flights would actually arrive and depart, the company’s CEO decided to shut down the airline until the situation was resolved. The weekend grounding in late 2011 certainly got everyone’s attention, but perhaps not in the way the CEO planned; flights eventually resumed with both sides agreeing to talk again, but only after an arbitration court intervened when an employee lockout was threatened.
2004’s strike by workers at Northwest Airlines was so protracted partly because each individual union (flight attendants, baggage handlers, mechanics, pilots) negotiated separately regarding their contracts. Rather than one large strike, where at least the public knows the planes will not be taking off, the individual strikes meant travellers never knew what they were going to get. Their flight might take off, but the luggage would stay on the ground or pilots would be serving drinks.
A British Airways cabin crew strike in March of 2010 lasted seven days and cut the carrier’s flights by approximately 14 percent; the cost to BA was estimated at about £43m. Strikes were implemented again, later in the year, regarding cost cutting at the airline, which at that point was losing vast amounts of money.
The economic cost to the airline is often centre stage in news articles, but the cost to businesses can be much greater. While one airline is affected, multiple businesses can suffer if their profits are dependent on an in-person presentation or meeting. A significant number of companies have already changed their strategies to incorporate more video conferencing or conference calls, a technique that many were forced to employ for the first time during previous airline strikes.
Business travellers are the heart and soul of airline profits. Families taking holidays do not travel anywhere near the miles that a business traveller does and so do not contribute as much to the bottom line. Should strikes become more of a concern, it is conceivable that businesses could shift more of their processes to online techniques or even flying smaller carriers, especially if those carriers take them where they need to go. Large carriers, such as BA, Air France and United are obvious choices for long-haul flights, but they are often not the only option. Business travellers may, in a sense, strike back if airline strikes begin to impact their ability to operate efficiently.
