losses they are making by reducing their costs as much as possible. There are various methods of doing achieving this.Job cuts could be made. This would reduce the cost of wages paid by the companies. However this may be met with opposition from employees. They may take industrial action to help and show support for their fellow employees that have been made redundant. Morale may also come down, as employees no longer feel that their jobs are secure.Companies could try to cutback on the number of planes used. This would reduce the cost of fuel and maintenance. The companies could also raise money through the sale of these unused plane and other assets. But this would mean that some routes would have to be cancelled so the airline would risk losing customers who use that particular route to competitors.Another option available would be for companies to adopt a policy of no hiring. This is when no new employees are hired. This would not reduce any costs but would prevent the addition of any further costs.The second step airlines should take is to solve any industrial disputes they may have with their staff as soon as possible in order to prevent any more industrial action being taken. This can be done by direct negotiations with pilots or their representative trade unions. When negotiating, the situation should be made clear to the pilots. It must be explained that the industry is going through tough time and that the only way for the company to survive is to cut costs either by job cuts or if pilots agree to receive pay cuts.Airlines could try to satisfy the demand of pilots by altering their pay scheme. Currently airlines pay pilots according to their seniority. This system can be changed to payment according to the number of flights flown each month, the number of hours flown each month or by introducing a fixed salary for all pilots. Pilots can also be offered more fringe benefits like free health care, pension plans, etc. in return f...
