Originally Posted by
ElZilcho
I agree that IP is needlessly complicated and it’s cheaper than hiring more pilots however, it’s not quite the rip off as you make out.
As you said, we don’t have an hourly flight rate, because we’re salaried. So you can’t simply create one by dividing the Salary into 60hr flying rosters because the Salary also covers ground time such as Turnarounds, SIM’s, Call etc
Using $156k as the example, Salaries are based on a 40hr working work which would equate to $75/hr but of course that’s a meaningless number outside of payroll because we don’t work a standard 40hr week.
While other Airlines use flight hour rates and MGP, we don’t. So it’s not a fair analogy.
For comparison here's the Qantas short haul equivalent of incentive pay:
27.4 Additional hourly rate after exceeding minimum guarantee hours
27.4.1 When a pilot exceeds minimum guarantee hours he or she will be paid an additional hourly rate for each such flying hour in excess of fifty three hours and twenty four minutes (53:24) calculated by dividing the applicable annual salary rate by six-hundred-ninety six (696) (“applicable hourly rate”).
27.4.2 For the purposes of this clause 27, actual time involved in deadhead travel for the purposes of a pilot’s proficiency or endorsement will count as the equivalent of flying duties at the rate of one (1) hour for two (2) hours elapsed.
This is the method I think Air NZ should be using. They've taken the annual salary, and yes it's a salary, divided it by the annual guarantee hours, and called that the hourly rate.