US regional captain to CX DEFO comparison
Gentlemen,
I sincerely want to thank my comrades on the other side of the pond who made this decision so much easier.
To pay it forward, I will duplicate the answers I received in a simple format that is valid in March of 2011:
A brief comparison of a US pilot to a Hong Kong pilot:
If the average US regional airline pilot makes $80,000 US per year, then he makes $6,666/ month.
If he has a family and he lives in an average town then his expenses would be something like:
1. mortgage, $1,000 or 15% of gross income
2. groceries, $500 or 7.5% of gross income
3. school costs for children, $0 or 0% of gross income
4. IRS, state, and local taxes, $2,000 or 30%
5. Percent of monthly income left for other expenses: 55%
If that US regional airline pilot were then to get lucky and get a job with Cathay Pacific as a DEFO (which I understand isn’t really an option for the time being….) then let’s say he made the same amount as he did back in the states. According to the conversion rate in March of 2011 his new salary is HK $623,184 per year, or $51,932/month. I understand this isn't an exact figure on the A scale, B scale, or C scale (whatever those are), I'm just trying to give us Americans from a different culture a reference point....
Assuming the above is still true, here is how those same expenses break down now that he is now living in Hong Kong:
1. rent (owning not feasible) HK $25,000 or 48%
2. groceries HK $10,000 or 19%
3. school costs for children (after help from CX) HK $10,000 or 19%
4. HK and US taxes HK $10,386 or 20%
5. Percent of monthly income left for other expenses: -6%. (Just by meeting the basic necessities you are already in debt.)
I hope this summary helps other Americans out there understand why these blokes are so “down” on the current hiring scheme.
DEFO is the only option for me if I can stand a chance at keeping my financial and family health.