MAH4546
Topic Author
Posts: 24557
Joined: Wed Jan 24, 2001 1:44 pm

MIA To Cut Jobs To Lower Costs

Sat Oct 27, 2007 7:26 pm

Details should be announced this week. MIA will be announcing that, over the next five years, they will be laying off 20% of their staff. With the lay-offs, MIA hopes to be able to reduce what are some of the country's highest landing fees, in order to better compete with FLL. They will also be stepping up efforts to lure Southwest and jetBlue, two airlines they have been wanting for a very, very long time (while I think luring Southwest is unlikely, given Southwest's recent choice of airports, like PHL, SFO, IAD, and DEN, I would not say it is impossible as I would have a few years ago). Contrary to popular belief, MIA is not congested, and has plenty of gate space for new carriers.

So far this year, MIA has had it's best traffic year since 9/11, and last year was the fastest growing major airport in Florida (growing at a faster rate than MCO and FLL). If growth rates continue, 2008 will be the busiest year in MIA's history. None the less, costs are still very high, and MIA is actually over-staffed as is, so the job cuts will hopefully go along way towards helping MIA curb or reduce rising costs for airlines operating to the airport. One reason for MIA's high costs is that they are a "pay per use" airport with common gates. Airlines don't lease gates, they pay for the use of them for every flight. This has it's advantages, and for international carriers with only one or two daily flights, it can actually save them money. However, for airlines with more than just a small number of flights, it gets very expensive.
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DTWAGENT
Posts: 753
Joined: Tue Jan 10, 2006 1:16 am

RE: MIA To Cut Jobs To Lower Costs

Sat Oct 27, 2007 7:44 pm

If that be the case. Sure would hate to see AA's bill at MIA every month or year. They must pay massive amounts to that airport being that is one of their hubs.

Chuck
 
MAH4546
Topic Author
Posts: 24557
Joined: Wed Jan 24, 2001 1:44 pm

RE: MIA To Cut Jobs To Lower Costs

Sat Oct 27, 2007 7:50 pm

Quoting DTWAGENT (Reply 1):
If that be the case. Sure would hate to see AA's bill at MIA every month or year. They must pay massive amounts to that airport being that is one of their hubs.

They do! Though with an operation that is composed largely of international flights, and where fares on a 45 minute flight to Nassau often cost over $200 round-trip, or a 2.5 hour trip to Maracaibo is rarely less than $550, they make a killing.
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Maracucho85
Posts: 32
Joined: Mon Aug 13, 2007 12:52 pm

RE: MIA To Cut Jobs To Lower Costs

Sat Oct 27, 2007 8:01 pm

Quoting MAH4546 (Reply 2):
or a 2.5 hour trip to Maracaibo is rarely less than $550, they make a killing.

Oh yeah, my home city is getting hurt by their monopoly on the route.

Best regards from Venezuela,

Alberto
 
MAH4546
Topic Author
Posts: 24557
Joined: Wed Jan 24, 2001 1:44 pm

RE: MIA To Cut Jobs To Lower Costs

Sat Oct 27, 2007 9:52 pm

Quoting Maracucho85 (Reply 3):

Oh yeah, my home city is getting hurt by their monopoly on the route.

Indeed. It would be nice to see a Venezuelan airline on the route.
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