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Originally Posted by skydog 
1) Pay pilots by the mile flown. For every mile flown, pay your pilots so many cents per mile. Since everything is about cost per ASM and RPM's, which is presumably how fares are calculated, it seems logical that pilot cost should be calculated the same way. Each leg would have a standard length. I think Chicago Express used to do this, and I think Southwest does a variation of this.
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Problem: If you're flying TUS to LAX, with is "X" miles, but you end up holding and diverting to SNA and then flying onto LAX when the fog clears, are you paid straightline distance from TUS to LAX, or TUS-SNA-LAX not including hold time?
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2) Pay pilots by the day. A pilot is paid a daily rate, regardless of the amount of hours he flies. This would encourage the company to maximize work days. I think USA 3000 does this. I have also heard the railroads do this.
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Some contracts already have 'minimum pay' per day.
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3) A combination of 1and 2. Each pilot is paid a flat daily salary, and then gets paid so much per mile. Some trucking companes do this.
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I-40 between Flagstaff and Albuquerque is a set distance. The miles you fly may vary widely because we do not fly point-a to point-b in a straight-line distance. We
barely fly exactly as we're filed on a flight plan.
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3) Pay them by the duty hour. A pilot goes on the clock when he reports on duty, and goes off the clock when he signs out. Seems fair. After all, he is at the company's beckon call for that entire time. He should be compensated for it, just like any other hourly worker.
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See #2.