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Everybody’s fault but our own by Air France unions……

Everybody’s fault but our own by Air France unions……

Old Sep 5th 2013, 8:27 am
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Default Everybody’s fault but our own by Air France unions……

Air France's trade unions have appealed to French Prime Minister Jean-Marc Ayrault for government support as their airline goes through a "crisis of exceptional gravity... which is presenting the carrier with serious, economic and financial problems".
In a letter sent to the PM last June and made public yesterday, union representatives on the Air France board mainly blame the Gulf carriers and the growing number of low-cost carriers (LCCs) for their employer's financial predicament.
According to La Tribune, they claim the three main Gulf airlines — namely Emirates, Etihad and Qatar Airways — have taken away market share on routes to Asia, Africa and the Middle East.
The letter reads: "Whenever additional traffic rights are granted to those companies it results in a loss of activity and related employment in Europe."
The unions of Air France and the Air France-KLM Group want the French government to "freeze any new allocation of traffic rights until a fairer competition is finally established".
By "fairer competition" they cite the fact that Gulf carriers benefit from more benign operating conditions in the Gulf compared to Europe (see our New World Order special report, December 2010).
However, they note that as the government is seeking to sell its Dassault Rafale high-performance fighter jet to Qatar and the UAE then its request may fall on deaf ears. It is important to note here that trade deals can be won or lost over issues as simple as airline traffic rights.
Competition from LCCs is also blamed for Air France's worsening financial plight.
These airlines "have headquarters in the most accommodating European countries in terms of tax and social security contributions. The most effective LCCs are English or Irish. None of them is French. Therefore it deprives our country of these jobs."
Air France faces higher wage costs than its European rivals which places it at a competitive disadvantage. This is partly because of high payroll taxes.
The letter reveals that staff costs account for 32.4 per cent of Air France's operating costs, as against 28 per cent for KLM, 24 per cent for IAG (BA and Iberia) and 23.4 per cent for Lufthansa.
Finally, the issue of high fees at ADP (Aeroports de Paris) also disadvantages Air France.
"ADP is a monopoly and airlines are captive customers," concludes the letter.

Obviously not the fault of high costs.

http://www.businesstraveller.com/new...lf-and-low-cos
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Old Sep 5th 2013, 8:42 am
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Default Re: Everybody’s fault but our own by Air France unions……

awful airline
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Old Sep 5th 2013, 9:15 am
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Default Re: Everybody’s fault but our own by Air France unions……

The fact that Air France is notorious for shit service and stroppy staff, making them last choice for most people doesn't seem to have crossed their ( small) minds.
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Old Sep 5th 2013, 10:14 am
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Default Re: Everybody’s fault but our own by Air France unions……

I expect they'll go on strike shortly. Or trash all their planes in protest.

That'll help.
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Old Sep 5th 2013, 3:10 pm
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Default Re: Everybody’s fault but our own by Air France unions……

Originally Posted by Blue Cat View Post
awful airline
I agree, crap ground staff too..unhelpful and arrogant.
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Old Sep 5th 2013, 3:49 pm
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Default Re: Everybody’s fault but our own by Air France unions……

New world order special


Hhmmm
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Old Sep 5th 2013, 3:51 pm
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Default Re: Everybody’s fault but our own by Air France unions……

Originally Posted by shiva View Post
New world order special


Hhmmm
Disquietening, isn't it?
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Old Sep 5th 2013, 8:04 pm
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Default Re: Everybody’s fault but our own by Air France unions……

I suggest they strike. Usually works for French businesses blackmailing their own government.
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Old Sep 6th 2013, 9:22 am
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Default Re: Everybody’s fault but our own by Air France unions……

They've got a point, though.
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Old Sep 7th 2013, 7:15 am
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Default Re: Everybody’s fault but our own by Air France unions……

Unions have gone way beyond the original idea of making jobs safer and preventing abuses by management etc. We work in countries with no unions and most of us don't feel the need to strike...we simply change jobs.

What makes Air France employees so special that they cannot work for similar pay and benefits to Etihad or Singapore Airlines staff?


N.
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Old Sep 7th 2013, 8:30 am
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Default Re: Everybody’s fault but our own by Air France unions……

Originally Posted by Norm_uk View Post
What makes Air France employees so special that they cannot work for similar pay and benefits to Etihad or Singapore Airlines staff?


N.
Because (I assume) the French social welfare system, from which they can't escape, limits them to 35 hours per week and relatively early retirement. I also assume that AF can't escape from that either. So that's Point 1: AF has to play by French employment rules (including all the other employment legislation that doesn't apply in the UAE), and therefore costs are automatically higher.

Point 2 is that EH/AH's other operating and capital costs are far lower because of subsidies, absence of tax (corporate, social welfare and fuel being, I imagine, the three most significant) and access to slave labour.

I can't see how any carrier from any industrialised country can compete.
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Old Sep 7th 2013, 8:46 am
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Default Re: Everybody’s fault but our own by Air France unions……

The debate about the influence of Gulf-based airlines has also proven one thing - these days people are willing to spend more for better service. This explains why the expensive Emirates flights to Europe tend to be fully or near-fully booked, while cheaper (often European) carriers rarely are.
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Old Sep 7th 2013, 8:51 am
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Default Re: Everybody’s fault but our own by Air France unions……

Originally Posted by Bahtatboy View Post
Point 2 is that EH/AH's other operating and capital costs are far lower because of subsidies, absence of tax (corporate, social welfare and fuel being, I imagine, the three most significant)
Aviation fuel is not taxed much, which seems to me extremely stupid. But airlines, being very clever, work out the best places to buy fuel and when i.e. fill up to full in France for a flight to UK and return and take the hit on weight, or only have minimum fuel to UK and uplift there.
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Old Sep 7th 2013, 8:55 am
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Default Re: Everybody’s fault but our own by Air France unions……

Originally Posted by mikewot View Post
Aviation fuel is not taxed much, which seems to me extremely stupid. But airlines, being very clever, work out the best places to buy fuel and when i.e. fill up to full in France for a flight to UK and return and take the hit on weight, or only have minimum fuel to UK and uplift there.
Ok, that's one assumption dealt with. So tax in Europe (let's include UK in that for the sake of argument) on aviation fuel is considerably less that that on petrol? Is there any logic in that? (Apart for giving subsidies to European carriers.)
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Old Sep 7th 2013, 9:12 am
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Default Re: Everybody’s fault but our own by Air France unions……

Originally Posted by Bahtatboy View Post
Ok, that's one assumption dealt with. So tax in Europe (let's include UK in that for the sake of argument) on aviation fuel is considerably less that that on petrol? Is there any logic in that? (Apart for giving subsidies to European carriers.)
No logic at all.
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