Copa Airways could face a decline in its post-pandemic enterprise restoration as its pilot workforce voted to go on a three-month strike after earlier months’ negotiations find yourself in a stalemate. This risk of a strike, if carried out could result in unprecedented losses in all airline operations. Therefore, this subject calls for a swift decision.
Copa Airways is the nationwide airline of Panama and the main airline amongst Latin American international locations. The airline boasts low cost fares, an enormous buyer base, and a hub connecting vacationers to the Americas.
Copa Airways is a well-established airline, servicing about 333 home and worldwide routes worldwide, working all its routes with one of the vital trendy fleets in Latin America at low fares.
Sadly, through the COVID-19 pandemic, like different firms, COPA Airways skilled substantial losses that led them to slash their pilots’ and different employees’s salaries. The airline’s post-pandemic restoration has been wholesome, and the airline is again to full capability. Nevertheless, whatever the wholesome restoration in gross sales, Copa Airways has maintained the slash in its pilots’ and employees’s salaries, which didn’t sit effectively with the employees.
By the Panamanian Industrial Aviators Union (UNPAC), the pilots of Copa Airways began negotiation talks with the administration of Copa Airways in October 2022 over their low salaries and different advantages.
The pilots argue that the airline has recovered from the COVID-19 pandemic results that triggered their wage slash within the first place. Therefore, they request a rise of their salaries, equal to the wholesome progress in gross sales recorded by the airline.
Phrases of Negotiation
Aside from the demand to extend their salaries, Copa Airways pilots have used this chance to request an improve to different advantages that they’re entitled to, together with:
- Higher medical insurance packages.
- Improved retirement plans.
- Higher day-to-day working situations.
- Higher in a single day lodging.
- Improved onboard meals.
Copa Airways’ reluctance to fulfill their calls for up to now has pressured them to announce that they are going to embark on a strike on Feb. 2, 2023. This strike will final three months except Copa Airways meets the pilots’ calls for.
The Strike’s Implications
Copa Airways is the main airline in Latin America, offering air journey companies to many vacationers domestically and internationally. Tocumen Worldwide Airport (PTY) is a Copa Airways journey hub, and Copa Airways companies a good portion of the airport’s market. Listed here are a few of the implications of the deliberate strike:
- Copa Airways will lose substantial home and worldwide ticket gross sales as vacationers search one other different.
- Tocumen Worldwide Airport will document losses, too, as Copa Airways flies over 90% of its passengers.
- There may very well be a reversal of Copa Airways’ enterprise restoration that the airline achieved after the COVID-19 yr.
- The strike might give the airline a nasty status, which is usually a enormous blow.
- Copa Airways might lose a good portion of its buyer base.
Following Copa Airways Pilots’ vote to strike, about 1,200 pilots are able to embark on the three-month strike, which exhibits their conviction to have their phrases met by the airline administration. The airline’s administration ought to notice the scenario’s urgency and the necessity to reevaluate their pilots’ negotiations, lest they incur substantial losses.
What do you consider this push-and-pull negotiation between Copa Airways and its pilots? Tell us within the feedback.