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Old 29th Aug 2007, 17:56
  #51 (permalink)  
Numero Crunchero
 
Join Date: Oct 2006
Location: Hong Kong
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frogman1484

It may seem counter intuitive but RA65 will actually cost CX money. What it gains them is less training courses in the short term (5-10 years depending on how long the average guy works beyond 55th birthday).

A simple example may help - imagine no growth - for the next 10 years there would be no courses needed. Meanwhile every SO is earning SO4 salary, all FOs are on SFO6 and all captains have moved up 10 increments. By our(not just me;-) analysis we estimate the savings on training costs are wiped out by extra increment pay per rank within 5 years.

There is a balance between training costs and having the most junior SO/FO/CNs possible. But if you become training constrained then all bets are off and you just accept the higher salary bill.

For info...the cost(salary and PF only) 'per pilot' was higher in 2000 than it is today. But then we had 600 A scalers out of 1500 vs 400 A scalers out of 2100 today.

So like I said, although it isn't obvious, RA65 is going to cost CX more than RA55.
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