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Kirsty Ferguson is an internationally acknowledged expert coach and speaker, and founder of global aviation interview preparation company Pinstripe Solutions. Her regular column on aviation employment issues appears in ‘Australian Aviation’ magazine.
Burning Question
AUTHOR: Kirsty Ferguson
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The new reality of aviation in Hong Kong
Back in 2000-2001, some of the first clients of my business Pinstripe Solutions were heading to interviews in Hong Kong. The opportunity to live and work in this ex-pat hub was exciting and sought after. It was viewed as a jumping off point to explore the world. The downsides of mass population and tiny apartments were clearly outweighed by lifestyle, travel, remuneration and career progression offered by the airlines.
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Hong Kong has been in the news for very different reasons of late, the demonstrations front and centre on our screens. It got me thinking about the life and careers of the hundreds of candidates I have supported to relocate to HK. How was it affecting them, their relationship with the local population and what was the impact on the aviation industry in general?
Is HK still a place offering an exciting lifestyle and solid aviation career?
One thing is clear; operating flights throughout China has become far more difficult in what could be compared to the biggest challenge airlines have faced since SARS. While insiders guesstimate a 40 per cent drop in passenger numbers this is not supported by the recently published 11.3 per cent drop for August 2019, and 14 per cent drop in cargo for Cathay/Dragon alone. Countermeasures have seen some operators enforce a freeze on non-flying hiring and offer unpaid leave.
Others, such as Air Hong Kong, experienced no measurable loss of business in July 2019 and minimal disruption since. They continue to upgrade pilots to command and to recruit additional pilots through to the end of 2019 while offering commuting contracts as a matter of course. With the express freight market forecast to continue its growth, freight jobs are some of the most attractive on offer.
Moving around the city on weekends is difficult and although the protests are isolated, there are road closures and airport access is often restricted. Safety is a priority with airlines supporting staff to access their jobs as seamlessly as possible. Encountering the reported tear gas, petrol bombs and riots is infrequent if ever.
Still, we are experiencing a higher rate of Hong Kong-based pilots repatriating to their countries of origin and retiring early. On reflection, the reasons are more complex than the current political climate alone.
For those on the old pay scale at Cathay/Dragon, deciding to stay comes down to remuneration, progression and seniority. To leave would mean stepping away from years of service and often incurring a huge drop in salary. For those considering returning to Australia, it means starting again at the bottom of a jet career. Under the new pilot pay scales, the more recently hired ex-pats, requiring substantial housing for families and costly schooling, are experiencing challenges that have made committing long term to Hong Kong-based airlines far less attractive.
Retaining staff clearly has to be a priority. With passenger numbers in a downward flux, tightening of expenditure cannot make this easy. It is not all doom and gloom; we have seen the industry rally time and time again. The economics of aviation change dramatically in relatively short periods of time, and rally again it most certainly will. Under the auspice of the CAAC, Hong Kong-based airlines do, however, appear to have additional hurdles to jump as do their employees.
Any ex-pat who lives under the terms of a foreign government has cultural and political differences to manage. That is a given. China has taken a tough stance with perceived dissent; protest participation and views on social media and the reaction to these perceived threats have disrupted flights, crew schedules and airport access. In the worst cases it has resulted in job losses.
I am not sure if the answer is clear-cut. Pilots are still heading to Hong Kong. The jet pay scales still offer better terms (remuneration packages), than most turboprop pilots currently receive. Those Airlines offering the flexibility of immediate commuting contracts for all pilots irrespective of seniority, have also become highly attractive.
Flying with incumbents who have far better benefits and packages, packages that they can never reach must, however, be a cause of frustration.
The challenges are there:
• Freedom of speech restrictions
• High cost of housing and schooling
• Seniority based commuting rosters – at some airlines
• Variations of pay-scales
• Increased disruptions
The ramifications of those challenges need to be fully explored by each individual candidate and each airline assessed on its merits.
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