Airline Hiring and the Economy

[Bruin-Flyer]

All

As been said by many on these boards before, airline hiring has much to do with a robust economy. Recently, USA Today reported a 7.2% growth and today they are reporting an unexpected decline in jobless claims.

So my question is......Do you think that airline management closely follows these trends to predict future hiring and company growth?

Also, (and this is probably for you guys that have been in the airlines for quite a while) when the economy recovers, has hiring historically been right in concert with a growing economy, or does airline hiring tend to lag behing economic growth to ensure that indeed the economy proves to be stable?

Any thoughts on this would be greatly appreciated.

 

[FlyingSig]

So my question is......Do you think that airline management closely follows these trends to predict future hiring and company growth?

No.

Also, (and this is probably for you guys that have been in the airlines for quite a while) when the economy recovers, has hiring historically been right in concert with a growing economy, or does airline hiring tend to lag behing economic growth to ensure that indeed the economy proves to be stable?

No. Historically, airlines tend to keep people on furlough too long to try and keep the cost savings, get themselves in a staffing hole then hire like crazy to catch up only to hire too many people as the next downturn approaches and find themselves overstaffed again only to have the furlough cycle start all over.

 

[Publishers]

No

No, it is not in concert with the economy. It is more in concert with discretionary funds. First comes back your hard core business traveler and then all the way to total discretionary liesure traveler.

No they do not use these numbers as a barometer. The reporting in the industry gives you all you need to know about loads.

 

[BMD]

No. Historically, airlines tend to keep people on furlough too long to try and keep the cost savings, get themselves in a staffing hole then hire like crazy to catch up only to hire too many people as the next downturn approaches and find themselves overstaffed again only to have the furlough cycle start all over.

Sounds a lot like how the navy maintains its pilot numbers.