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Author Topic: Horrendous Labor Costs  (Read 573 times)

gilman.shane

  • Former member
Horrendous Labor Costs
« on: June 05, 2010, 12:38:50 AM »
Has anyone else noticed that labor costs and "required" personnel are completely whacked up. For example. Operating 3 Beech 1900's and one ATR 72/500 the sim requires I have 5 Upper level managers, 7 middle level managers, 13 ECONOMICS AND FINANCE!, 26 ROUTE STRATEGIES Dept, and 8 Corporate communications. Now, as a current employee in a regional airline at a corporate office, I KNOW that for a small operation consisting of small aircraft there would never be this many people working as the TCASM would be too great for the aircraft to generate significant profits when dealing in the 19 seat range. I also find it to be horribly unrealistic that these people would be payed these amounts in real life at a regional airline. I think a good fix would to be having a new player select the model they wish to grow to. An LLC or Legacy, Large Regional etc... and the pay and number of required bogus personnel (26 Route Strategies Dept. for 4 Aircraft?) be kept within that model. If that is too big of a fix then let us have greater flexibility in hiring and firing and setting salaries without so much "negative" impact on our company image.

GDK

  • Former member
Re: Horrendous Labor Costs
« Reply #1 on: June 05, 2010, 02:34:58 PM »
only sami or some experienced players can answer this...

auerbacs

  • Former member
Re: Horrendous Labor Costs
« Reply #2 on: June 05, 2010, 03:33:02 PM »
As far as the actual numbers of staff that are concerned, you're right to say that they're a little ridiculous. However, the total staffing cost as a percent of your operating costs is realistic. Essentially the numbers of employees don't mean all that much. Pilots are the only one that seems to really make a lot of sense. It's one of those things where all those positions and staff numbers were added mostly for aesthetics, right Sami?, just like marketing, where the only thing that matters is the total monthly sum that you invest rather than what combination of strategies you use. At least this is how I understand the personnel

Offline Sigma

  • Members
  • Posts: 1920
Re: Horrendous Labor Costs
« Reply #3 on: June 05, 2010, 03:59:09 PM »
As far as the actual numbers of staff that are concerned, you're right to say that they're a little ridiculous. However, the total staffing cost as a percent of your operating costs is realistic. Essentially the numbers of employees don't mean all that much. Pilots are the only one that seems to really make a lot of sense. It's one of those things where all those positions and staff numbers were added mostly for aesthetics, right Sami?, just like marketing, where the only thing that matters is the total monthly sum that you invest rather than what combination of strategies you use. At least this is how I understand the personnel

Under most circumstances you're absolutely correct.

But for small airlines -- like those operating Beech 1900s, even the total percentage outlay for salaries is outrageous.  The model is designed around major worldwide airlines, and it works fairly well there.  It falls flat when trying to do small airlines as it simply hires too many people for the revenue being brought it by those tiny planes.

It's a known problem, it's something that'll be fixed one day.  But you can read the myriad of threads on making a functional, even wealthy, smaller airline.

 

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