SeaSunSandFly - I was wondering how long it would take you to sniff out the 'c' word!
I'd suspect that in Chile things work pretty much the same as they do in your neck of the woods - consultancy fees and fat brown envelopes all round!
I agree completely with you though - management (including chief pilots
) should receive a decent basic salary and bonuses based on results. In fact, you could even have it structured in such a way that management receieved a pay
cut in the event of losses, which I think would focus their minds tremendously!
This would have the happy benefit of being able to make profit sharing of all staff viable as honest figures would have to be produced by management to justify their own bonuses. An ESOP means that all staff have to be shareholders and under UK law (no idea what the law is in Chile) all shareholders are eligible to receive a copy of the accounts and attend the AGM where they can ask embarrassing questions of management, should it merit it.
RightsFlyer - I agree ... in fact I was looking earlier for a website I had (but seem to have midlaid) that gave such a comparison between all the world's cities - an index compaing the cost of living related to salaries so if you lived in, say, London and moved to Tokyo you'd need to earn 286% of your current salary - that sort of thing. I'll keep looking.
Bear in mind that with lower labour costs (though judging from
Stuka's posts management seems to make up for that) lower fares will be possible, which is often the case in developing nations.
As fo consultants, I believe that a US carrier (Continental, I think - though I stand subject to correction here) is indeed charging fairly astronomical consultancy fees for its expertise.