Hi christep
I can't see any way to set salaries except based on where you are employed. Having a salary level based on anything else would I am sure be regarded as discriminatory - would it be based on your passport?
Dig a bit deeper. The truth is that CX does not recruit many pilots from HKG - a handful of Cadets each year. Most CX pilots are experienced and come from abroad and the first thing that a prospective recruit will do is get out his calculator and divide by the current exchange rate.
This would explain why CX is losing so many pilots at the moment (100 per year?). And why they are finding it very difficult to recruit.
So I agree with your overall thrust that the market will sort this out.
That's certainly how it is in most other industries - time on fancy "expat" terms is very limited: once you are somewhere for the long term (normally more than 3 or at most 5 years) then you're no different from anyone employed locally.
Dig a bit deeper. Most "in other industries" who stay have their expat allowances converted into increased salary. Ask yourself why these other industries and CX have to offer these terms in the first place. The reasons do not go away.
So the nominal cost of living in Hong Kong is now more or less the same as it was in 1994-95.
Really? Have you lived in HKG since '94?
In pretty much any other field people would be delighted to sit in the same job for 10 years and get a 3% REAL increase in salary every year. I know I would.
Dig a bit deeper. This is the way the market pays pilots. I know its not how you are paid so may be difficult to understand.
What is going on is that young pilots forgo salary early on in their career, hoping they will make it up later on. Not sure a young pilot would invest 1 Million HK in his training to earn 300K for the rest of his career.
For your system to work, pilots salaries for the younger pilots (of whom there are many more), would have to be increased substantially for the pilot market to deliver sufficient pilots.
The airlines are actually quite happy with the current arrangement. It instils loyalty, which avoids costly training. Also makes expansion cheaper since your pilots stay junior and cheap.
My only connection to CX is that I have flown enough to be Diamond for the last 7 years, although I'm about to lose that since I don't travel on business any more and the CX service levels have dropped (whilst prices have increased substantially) such that I don't want to spend my own dime that way any more.
Sorry to hear that - truly I am.
(One of the reasons this is happening is that CX is losing the edge in the Cabin. Its still good compared to the likes of QF, BA, AA etc....despite the way CX treats its cabin staff. However, this treatment is beginning to "pay off"....and you are the evidence. But I digress.)
It sounds as if CX has tough times ahead, both in the air transportation market and the pilot market. Note: Though related, these are different markets. It is possible for there to be a shortage of pilots, with salaries rising even when airlines are doing badly. Bit like fuel prices really - they can go up even if the airlines are doing badly.
There are massive numbers of cockpits to be filled in the next few years around the world. No doubt there has been some over ordering and margins will suffer - quite a few of these airframes may not be delivered. I very much doubt though that this will alleviate the shortage of pilots.
Milly