Mexican LCCs Blamed For Financial Woes Of Legacies
Mexico's Reforma research group said high operating costs and aggressive competition by a group of startup low-cost carriers are to be blamed for the financial crises now facing legacy carriers.
A comparative financial study of both carriers analyzed by Reforma reveals legacy pilots and flight attendants are less efficient and earn more than those at LCCs. Efficiency levels for flight attendants fluctuate according to each aircraft's seat configuration and the number of employee hired.
Mexicana is using similar arguments to amend its collective work contract with inflight employees so as to save US$25 million, but the Flight Attendants Union rejects blaming their wages on the carriers' current financial crises. Negotiations are now deadlocked between management and the union.
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