provides an explanation of the chronic financial problems that airlines find themselves in. Briefly, the senior pilots get to negotiate their own pay rates, and since they have the airlines over a barrel they always wind up taking any profit themselves.
Of course that means that airline management is permanently strapped for cash and has to spend the bare minimum on everything else.
http://philip.greenspun.com/flying/unions-and-airlines
provides an explanation of the chronic financial problems that airlines find themselves in. Briefly, the senior pilots get to negotiate their own pay rates, and since they have the airlines over a barrel they always wind up taking any profit themselves.
Of course that means that airline management is permanently strapped for cash and has to spend the bare minimum on everything else.