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Employment and Working Conditions in the Air Transport Sector Over the Period 1997/2010

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Employment and Working Conditions in the Air Transport Sector Over the Period 1997/2010 Study on the effects of the implementation of the EU aviation common market on employment and working conditions in the Air Transport Sector over the period 1997/2010 Final Report Report July 2012 Prepared for: Prepared by: European Commission Steer Davies Gleave DG MOVE 28-32 Upper Ground Unit E1 London SE1 9PD DM 24-5/106 B-1049 Brussels Belgium +44 (0)20 7910 5000 www.steerdaviesgleave.com Final Report CONTENTS EXECUTIVE SUMMARY ...................................................................................... I Background ............................................................................................ i Scope of this study ................................................................................... i Conclusions ........................................................................................... ii Recommendations .................................................................................. xi 1 INTRODUCTION ..................................................................................... 1 Background ............................................................................................ 1 Key findings of the 2010 Working Document .................................................... 1 The need for this study ............................................................................. 1 Structure of this report ............................................................................. 2 2 RESEARCH METHODOLOGY ....................................................................... 3 Objectives ............................................................................................. 3 Stakeholder engagement ........................................................................... 3 Data collection ....................................................................................... 6 3 DEVELOPMENT OF THE AIR TRANSPORT MARKET .......................................... 11 Introduction ......................................................................................... 11 Trends in traffic .................................................................................... 11 Changes to the structure of the market ....................................................... 14 4 DIRECT EMPLOYMENT IN THE AIR TRANSPORT SECTOR ................................... 19 Introduction ......................................................................................... 19 Data sources and limitations ..................................................................... 19 Total employment in the air transport sector ................................................ 20 Air transport operators............................................................................ 22 Airports .............................................................................................. 37 Independent aircraft maintenance organisations ............................................ 42 Ground handling .................................................................................... 43 Air Navigation Service Providers (ANSPs) ...................................................... 49 Education and flight training organisations ................................................... 60 Regulatory and oversight bodies ................................................................ 63 Computerised Reservation Systems ............................................................. 64 Non-EU residents working in the EU air transport industry ................................. 65 5 INDIRECT EMPLOYMENT .......................................................................... 69 Contents Final Report Introduction ......................................................................................... 69 Definitions ........................................................................................... 69 Methodology ........................................................................................ 71 Results ............................................................................................... 73 6 EMPLOYMENT QUALITY AND WORKING CONDITIONS ...................................... 79 Introduction ......................................................................................... 79 Outsourcing ......................................................................................... 79 Contractual relations .............................................................................. 86 Temporary agency workers ...................................................................... 91 Unionisation ......................................................................................... 93 Trends in wages and remuneration ............................................................. 95 7 EMPLOYMENT FORECASTS AND ANALYSIS OF TRENDS .................................. 103 Introduction ........................................................................................ 103 Productivity and other factors influencing total employment ............................ 103 Relationship between the single market, traffic growth and employment............. 109 Future trends in direct and indirect employment .......................................... 112 8 CONCLUSIONS .................................................................................... 121 Recommendations ................................................................................ 122 FIGURES Figure 1 Direct employment in the air transport sector, 2000-2010, 000’s . iii Figure 2 Passenger and flights forecast, 2010-2020, index 2010=100 ...... viii Figure 3.1 Indexed passenger growth for EU27, 2001-2010 ...................... 12 Figure 3.2 Passengers EU airports, 2001-2010 ...................................... 13 Figure 3.3 Indexed flight growth for the EU27, 1998-2010 ....................... 14 Figure 3.4 Market share on intra-EU routes, 2005-2012 .......................... 15 Figure 3.5 Market share on extra-EU routes ........................................ 17 Figure 4.1 Air transport operators: total employees, EU + Switzerland ....... 25 Figure 4.2 Air transport operators: employees by personnel type .............. 26 Figure 4.3 Total air transport operator employees: 6 largest States ........... 27 Figure 4.4 Total airline employees: CAGR 1998-2010 ............................. 27 Figure 4.5 Flight crew employment vs overall airline employment, 1998-2010 ................................................................................ 29 Figure 4.6 Flight crew vs CPL and ATPL licenses, Ireland ........................ 31 Contents Final Report Figure 4.7 Cabin crew, flight crew and total air transport employment growth, 1998-2010 ......................................................... 33 Figure 4.8 Number of airports with annual pax >15,000 .......................... 38 Figure 4.9 Estimated security personnel, EU ....................................... 41 Figure 4.10 Airport vs privately employed security personnel: Romania ....... 41 Figure 4.11 Independent ground handling organisations: employees at selected organisations ................................................................ 47 Figure 4.12 Ground handling FTEs in EU, 2005-2010 ................................ 48 Figure 4.13 Breakdown of EU ANSP staff roles, 2010 ............................... 50 Figure 4.14 ANSP: total employment at largest 5 ANSPs, 2002-2010 ............ 52 Figure 4.15 ANSP employment: ratio between employees and FTEs ............ 53 Figure 4.16 ANSP: support staff ratio, 2010 .......................................... 60 Figure 4.17 Internal and external employees, computerised reservation systems organisation, 2004-2010 ................................................... 65 Figure 6.1 Relationship between airline and outsourced flight crew personnel ................................................................................ 81 Figure 6.2 Total employment and self-employment in the air transport sector, EU15+Switzerland, 1997-2010 ............................................ 82 Figure 6.3 Full- and part-time jobs in the air transport sector, EU15+Switzerland, 1997-2010 ............................................ 87 Figure 6.4 Temporary jobs in the air transport sector, EU15+Switzerland, 1997-2010 .................................................................... 88 Figure 6.5 Average expenditure per personnel type, UK airlines, 2003-2010, 2010 euros ................................................................... 96 Figure 6.6 Average costs per staff of European airlines .......................... 97 Figure 6.7 Trend in ATCO and other ANSP costs per employee, 2002-2010, 2009 euros ................................................................... 98 Figure 6.8 ATCO employment cost per ATCO hour, €, 2009 ..................... 99 Figure 6.9 Airport security hourly wages for selected States, 2008, Euro .... 101 Figure 7.1 Traffic growth (flights, total passengers) vs employment at airlines, 2001-2010 ................................................................... 104 Figure 7.2 Productivity drivers: employment at airlines 2000-2010 ........... 105 Figure 7.3 Airport employment productivity: 2000-2010 ........................ 107 Figure 7.4 ANSP staff productivity (2002-2010) ................................... 109 Figure 7.5 Comparison of intra-European traffic growth with other world regions, 2003-2010 ........................................................ 111 Figure 7.6 Passenger and flights forecast, 2010-2020, index
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