Originally Posted by figleaf
To reclarify: Jade are investing in expensive aircraft and expensive training, but they are going cheap on pilots. The contract is $8000 net (they dont seem to have worked out the gross yet though i am sure tax in Shenzen is not secret), for a Capt ,type rated, flying 50 hours. $5600 for a first officer. deduct $1200 per month from these figures if not type rated. There is no accomodation allowance, no medical insurance, very poor loss of license insurance and $3 per hour per diem but not from signing on to signing off, these are from arrival to departure. There is no guaranteed time off at home (eg the usual 9 days per month or so, 12 with Asiana!) The cherry on the cake is that you will have to sit the Chinese ATPL. Above $50 hrs per month you will recieve $50 per hour (it is $160 per hour before.) with one aircraft arriving in jul and one in Nov it will be many years before you fly more that 50 hours so the $9500 p/a is a smokescreen. Also of course if you go on leave etc the salary will drop to the basic 50 hour salary.
The staff of the company are charming and Shenzen is a nice place however they have made a poor decision to be the poorest paying 747-400 operator on the planet. Firstly it sends the wrong messages about the company, secondly it will cost them in the long term: type rated pilots will get fed up when they see their final net salary and move on to other operators. In the unlikely event that the company can retrieve the $1200 per month 'bond' it will still be worth the move because Jade are paying SO far below the market rate. Additionally the company is having to pay for line trainers etc from another source because they do not pay enough to recruit their own type rated experience. ironically this will cost them more than paying the market rate for such pilots in the first place.
Jade's LOWEST offer should be: Min $9500 net capt $6500 f/o regardless of hours flown. Overtime after 80 hours. Accomodation allowance, loss of license ins, medical insurance, $4 per hour per diem from sign on to sign off and guaranteed min of 9 days at home per month. This would still be below the competition packages but may make Jade attractive enough. As it is they have badly miscalculated the contract and are likely to attract the waifs and strays of the industry. They will certainly be starting operations wthout enough experienced type rated crews and this can only come back and haunt them.
Couldn't have said it better myself!
There is NEVER anything to be gained, certainly not long-term, by being the LOWEST paying operator for the type. This type of strategy usually comes back to haunt those that strove for it and in the end, it will end up costing them far more than they imagined. Just think of the possible turnover costs!
Certainly, they will not be getting very many experienced guys or indeed, the most prized pilots - the trainers, unless there is substantial improvement in this package. Heck, I'm just a lowly FO with tons of international experience including cargo and I already get paid FAR more than this, including per diem. What is my incentive to move to a lower-paying job where I also won't get to fly that much?!!
Jade will get what they ask for, which is a pity because there are plenty of ways to keep costs low - even for a start-up, than cream the very people you depend on. I wish them and those who join luck, because they'll all need it..........