The Wall Street Journal
May 16, 2007
As Pay Falls, Airlines Struggle to Fill Jobs
Tighter Staffing Makes Morale 'Severely Tested'; Why Your Flight Is Late
By MELANIE TROTTMAN and SUSAN CAREY
May 16, 2007; Page A1
Wrestling suitcases on and off planes got so grueling late last year for Southwest Airlines Co.'s 350 ramp workers in Chicago that by Christmas season one-fourth of them were reporting on-the-job injuries. Starting pay for the position: $8.75 an hour.
Airlines used to offer prestigious jobs with good wages and coveted flight benefits. Now, in the aftermath of aggressive cutbacks, a growing number of airline jobs are more akin to those at a fast-food restaurant. The pay is low, the work is tough and, in a new twist, airlines are having trouble hanging onto workers and finding new ones.
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That's not good news for passengers, as the combination of fewer and less experienced workers is causing more service problems. Planes sit on tarmacs because airlines are short on gate workers. Service on planes is slower because many airlines are flying with fewer flight attendants. When bad weather hits, tight staffing may mean more delays or canceled flights. The situation isn't likely to improve anytime soon. Although airlines were able to raise fares the last two years as travel surged, customers have begun to resist fare increases, domestic demand is softening, and jet-fuel prices have started rising again. These are the same pressures that contributed to more than $50 billion in net losses from 2001 through 2005.
The U.S. airline industry is profitable today in part because big network carriers shed more than 170,000 workers, or 38% of the total, between August 2001 and October 2006, according to the Air Transport Association. That happened even as the number of passengers flying has returned to pre-9/11 levels. Pay has fallen, sometimes substantially.
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Advances in technology account for some of the declining need for workers. Many passengers book their tickets on the Internet and check in via self-service kiosks. Also, airlines need fewer gate agents because passengers are now generally required to check in at the main terminal before undergoing security screening. Nonetheless, by many measures, service is growing worse. Last year, 22.6% of flights were late, the highest percentage since 2000, according to the U.S. Department of Transportation. That isn't all the fault of airlines; the outdated U.S. air-traffic-control system also plays a role. In March of this year, passenger complaints about U.S. airlines nearly doubled from the same month a year earlier, with big increases in gripes about cancellations, delays, and missed connections. That same month, the rate of mishandled baggage rose nearly 33% from a year earlier at the largest 20 carriers, says the department.
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