PPRuNe Forums - View Single Post - Air Mekong in Vietnam
View Single Post
Old 31st May 2010, 19:53
  #19 (permalink)  
The Dominican
 
Join Date: Oct 2006
Location: Over the Pacific mostly
Posts: 1,043
Likes: 0
Received 0 Likes on 0 Posts
ASA was counting with the fact that you guys have very little knowledge about the salary levels and the business models of these international contracts. These are high yield markets because there is little competition and these companies are profitable as stand alone companies, they are not part of a network where the regional carriers don't make money really for the mainline carrier but rather the money is made by feeding the hub. The countries that form the Asian block are experiencing the largest increase of middle class (Families earning the equivalent of 5,000 USD/Month or more) in the history of humanity largely surpassing the middle class development in the U.S. of the 50's and 60's. The economical development of this region is the reason why ASA is investing in this venture and the fact that they won't be restricted by scope since they will be a stand alone, the yield and profit levels currently are supporting salary levels of 10 to 12k USD for CRJ captains with contract completion bonuses that varies from 20 to 30K USD at the end of the contract and these companies paying these salaries are profitable. ASA was counting on the fact that you would equate your current situation and the pathetic state of the job market in the US and apply that as the basis of your decision making process for considering this very substandard offer. But undercutting the S.E. Asia market by an outstanding 40% at the regional level brings an interesting point, What about the wide body market? ASA could very well find itself in a position of leasing A-330's 767's since there is no scope restriction and if you are willing to accept $80,000 when they are paying $120,000 to fly a CRJ, you see where I'm getting at? You are judging the conditions of the market in the US and applying that condition to a market that is profitable and supports a LOT higher salaries than it's being offered. I just hope that you understand that ASA needs you for this venture and they are willing to pay international market wages because they have no other options if you guys don't accept the pathetic terms they are offering because in the international market there are no pilots that would accept these terms when they can go to the next job in the same country, flying the same airplane and make 40% more.
The Dominican is offline