Civil aviation and its changing world of work Sectoral Activities - - PowerPoint PPT Presentation

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Civil aviation and its changing world of work Sectoral Activities - - PowerPoint PPT Presentation

GDFCA/2013 Civil aviation and its changing world of work Sectoral Activities Department Introduction This Global Dialogue Forum is to discuss The effects of the economic crisis in the civil aviation industry, in order to reach a common


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Civil aviation and its changing world of work

GDFCA/2013 Sectoral Activities Department

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Introduction

This Global Dialogue Forum is to discuss… ‘The effects of the economic crisis in the civil aviation industry, in

  • rder to reach a common understanding of the difficulties the

industry has undergone due to structural change, and a better understanding of the effects of the low-cost carrier model on the industry as a whole, as well as consensus on a common approach that could contribute to a more sustainable industry’.

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A Short Glance at Civil Aviation

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Civil Aviation is a Major Industry

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  • US$425 billion in value added (2007)
  • 8.3 million people employed worldwide
  • The industry supports 15.1 million jobs
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Distinct Features of the Industry

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  • Transnational industry but rooted to countries
  • Highly regulated
  • Highly segmented job profiles
  • Constant fluctuations
  • Perishability of the service
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From Crisis to Crisis

2001 2002 2008 2010

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Recent Trends and Outlooks in Civil Aviation

Air Transport, registered carrier departures worldwide and passengers carried, 1970-2010

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5 10 15 20 25 30 500 1000 1500 2000 2500 3000 Millions Millions Air Transport, passengers carried (left axis) Air transport, registered carrier departures worldwide (right axis)

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Air transport, freight (million tonne-km), 1974-2010

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50 000 100 000 150 000 200 000 250 000

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Airlines

“Airlines are a wonderful generator of profit – for everyone except themselves” The Economist (2012)

Full-Service Airline Low Cost Carrier Regional Airline Charter Airline

Percentage of total passengers

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World’s largest airlines in 2011, measured by number of revenue passenger kilometres (RPK) and number of passengers

20000 40000 60000 80000 100000 120000 140000 160000 180000 50 000 100 000 150 000 200 000 250 000 300 000 350 000 RPK's (millions) (left axis) Passengers (000) (right axis) February 20, 2013 GDF Civil Aviation 11

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Airlines in the Middle East

  • Middle Eastern Airlines have grown in importance

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2003

Low Cost Carrier Seat Capacity

11%

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2004

Low Cost Carrier Seat Capacity

14%

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2005

Low Cost Carrier Seat Capacity

15%

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2006

Low Cost Carrier Seat Capacity

17%

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2007

Low Cost Carrier Seat Capacity

20%

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2008

Low Cost Carrier Seat Capacity

21%

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2009

Low Cost Carrier Seat Capacity

22%

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2010

Low Cost Carrier Seat Capacity

24%

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2011

Low Cost Carrier Seat Capacity

25%

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2012

Low Cost Carrier Seat Capacity

26%

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Total airlines’ net profits and profit margins 2003-11

  • 30
  • 25
  • 20
  • 15
  • 10
  • 5

5 10 15 20 2003 2004 2005 2006 2007 2008 2009 2010 2011 Total airlines net profits (in USD billion) Profit margin (per cent)

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Airports

Top 10 largest airports in 2011 by passenger numbers

Atlanta Beijing London Chicago Tokyo Los Angeles Paris Dallas/Fort Worth Frankfurt Hong Kong

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  • Significant source of employment
  • Ownership – private vs. public
  • Regulation – traditionally a natural monopoly

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Land-Side Operations

  • Ground Handling and Catering
  • Maintenance
  • Air Traffic Management

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Employment

Employment in air transport in 2010

500000 1000000 1500000 2000000 2500000 Airlines and handling agents Airport operators Others working on-site at airports Civil Aerospace Industry Africa Middle East Latin America and Caribbean Europe Asia-Pacific North America

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Civil Aviation in the Decade Following 9/11

The United States annual airlines employment and revenue passenger miles 1990-2010

400 000 450 000 500 000 550 000 600 000 650 000 700 000 750 000 800 000 850 000 900 000 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Revenue passenger miles (millions) Employees (average full time equivalent)

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“If the Wright brothers were alive today, Wilbur would have to fire Orville to reduce costs” Herb Kelleher, 1994

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Alliances

28 member airlines 12 member airlines 19 member airlines

Percentage of Seat Capacity

Star Alliance

  • neworld

Sky Team Non Alliance

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Mergers

2004 2008 2010 2013?

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2011

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Deregulation

  • Open Skies
  • Regulatory System
  • Flags of Convenience

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Pressure on Labour Costs

  • Outsourcing
  • Temporary Contracts
  • Agency Labour

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“Oh, it is excellent to have a giant’s strength; but it is tyrannous to use it like a giant” Shakespeare - Measure for Measure, II:2

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Gender in Civil Aviation

Employment in air transport in EU27, 2000-07

0,0 100 000,0 200 000,0 300 000,0 400 000,0 500 000,0 600 000,0 2000 2001 2002 2003 2004 2005 2006 2007 male female

  • Women are Underrepresented in Civil Aviation
  • Lack of Women Pilots – 4% worldwide
  • Cabin Crew seen as ‘woman's work’

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Which picture is more representative?

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Challenges for a Sustainable Industry

  • Infrastructure Constraints
  • Shortage of Skills
  • Economic Viability with Sustainable Enterprises
  • Environmental Issues

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Challenges for Decent Work

  • Rights at Work
  • Occupational Safety and Health
  • Migrant Workers
  • Social Dialogue

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Improving Workplaces

  • Employment Relations in Airlines

“Loyal employees in any company create loyal customers, who in turn create happy shareholders.”

Sir Richard Branson, 2001

  • Work Coordination at Airports

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The Role of the ILO

  • Make Decent Work a Reality in Civil

Aviation

  • Creating jobs
  • Guaranteeing rights at work
  • Extending social protection
  • Promoting social dialogue
  • Collaborate with the constituents and

partners, including ICAO

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Discussion Points

  • 1. What have been the effects of the economic crisis and other crises since

2000 on civil aviation, what difficulties did the industry undergo due to the structural change, and how have low-cost carriers affected the industry as a whole?

  • 2. What are the most important occupational safety and health issues and

how could they best be addressed?

  • 3. What should be done to promote social dialogue in the civil aviation

industry, in order to ensure that civil aviation can attract and retain the workforce it needs and provide decent work, and to contribute to a more sustainable industry?

  • 4. Recommendations for future action by the International Labour

Organization constituents and the International Labour Office.

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