3,000 jobs lost

  charmingman 18:28 05 Jun 2008

Weve all heard story's similar to this with the current market BUT one thing i did admire was this & i quote "The company said in a statement that Kellner and Smisek will decline their salaries for the rest of the year and any payment under the annual incentive program for 2008, "in recognition of the crisis and its effect on their co-workers" NOW thats repsect for ya, could you imagine BA doing that..I think not...

click here

  Forum Editor 07:25 06 Jun 2008

and these men obviously think that sacrificing six months pay and bonuses is worth it for the publicity it brings, and the goodwill it might generate as they eliminate 3000 jobs.

The fact is, both of them will still get over a quarter of a million dollars for the year, so they'll be able to afford to eat.

Would BA executives make the same gesture? Nobody can possibly know the answer to that. You might as well ask if Cathay Pacific directors would do it, or those who run Quantas. If the situation arises we'll see.

The american airline business needs to lose around 20% to 25% of its seat capacity, and it needs to do it rapidly. Aviation fuel costs have risen by 75% in a year, and that's a massive problem for any airline. There will be hundreds of passenger jets sitting idle in the near future, and some of them will probably never fly again - it's not a good time to be thinking of buying shares in an airline.

  jakimo 18:49 06 Jun 2008

Don`t you believe in human kindness,and all that?

  Forum Editor 18:56 06 Jun 2008

Of course I do, but what has that got to do with problems in the airline business?

Surely you aren't suggesting that these two men have given up six month's salary because they are overflowing with human kindness are you? If you are, you're deluding yourself - they've done it because their business is in danger of imploding, and they would be out of a job if that happened. They had to reduce the payroll, and reduce it fast, and they want to retain as much employee-employer goodwill throughout the process.

Setting an example such as this is a pretty good way of saying 'you see? It's not just people like you who are having a hard time - we're making sacrifices too'. It's a hard-headed business decision, nothing more, nothing less.

  rdave13 18:58 06 Jun 2008

'Don`t you believe in human kindness,and all that?
', what; in business? No such thing.

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