Link : http://thechronicleherald.ca/Business/1078463.html

Summary

Air Canada has decided to close their flight attendant base in Halifax as a way to counter the increasingly high fuel prices. This decision will result in 187 flight attendants losing their jobs. However Halifax Local 4090 believes that the base is effective and that Air Canada is making a grave mistake. They believe by closing down this base that it will increase costs the the airline and it will jeopardize reliable air service in Halifax. Air Canada's justification on this move is that there would be additional layovers and more flight attendants would be deadheading (flight attendants taking up seats to travel to and from work)

Introductory Concept - Opportunity Cost

Opportunity cost is the cost of passing up the next best alternative choice when making a decision. The opportunity cost in this article is when "deadheading" happens. Air Canada has to have enough flight attendants in Halifax so that they can have flights going in or out of Halifax at any given time. Having this many flight attendants stationed out or in of Halifax airport will definitely have many flight attendants deadheading. Air Canada will be losing approximately $1000 dollars for every seat that is being taken up by a flight attendant.

Personal Reflection

It is very unfortunate that 187 flight attendants will be losing their jobs because of this decision by Air Canada. If fuel prices were skyrocketing, then these jobs wouldn't have been lost. I find it hard to blame Air Canada because it was a business decision based on the facts that this base is no longer profitable. What could Air Canada have done instead? I do not think that they was another solution where they did not have to fire those flight attendants and still make a profit, you can only have one.