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Old 1st May 2008, 12:01
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Numero Crunchero
 
Join Date: Oct 2006
Location: Hong Kong
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EK vs CX profit share

If CX had made the same profit margin as EK we would have got about 36 days of PS, plus the $6K! Interestingly under the old PS formula it would have been 39 days.

To compare apples with apples add on the 13th month, aka the "annual discretionary bonus", and CX PS would total 9.5 weeks. So I think we know which airline is more parsimonious!


EK salary vs CX - after 10 years at EK you would be about 35% better off than CX - assuming command at EK after five years. That amount ignores the EK profit share over and above our equivalent 13th month. It also ignores ERP as technically that should wash out over a few years.

Its very hard to compare two airlines remuneration systems. Many little factors add up to big numbers. ERP, untaxed housing and education allowances, lower threshold for EFP, free utilities etc. It all adds up.
Its the intangibles that will influence which airline is better - closer to Europe or Aus? Cheap cars or cheap public transport - inflation vs inflation and pollution.

VB rules - buying a house in HKG is not the financial panacea to our inferior salary levels. This was clearly pointed out by a previous AOA president. I have provided numerical examples on other threads but very briefly for $10m HKD ($1.25M USD) you will get a 1,000' flat near town or 2,000' way out of town and the CX housing allowance will cover it and let you build up equity at about 1-2% pa. So as long as the market goes up or sideways you will make headway. One of the 49ers bought a place in 1997 for $5.2m that was worth just over $1.8m when he lost his job 4 years later - caveat emptor. As Warren Buffet says, its only when the tide goes out that we will find who has been swimming naked.
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