Whenever I look at the airline industry I wonder how they make money…for the shareholder.
All airlines buy planes from the same companies, fly to the same airports, recruit from the same talent pool (well largely), have the same set of shareholders….how will the end product be different?
Well I have no clue, but I guess it has to be because of the training! The attitude of an air-hostess in Air India is likely to be different from that of a Kingfisher airline – and that has to make the difference, correct?
Well not so sure.
The airline industry has most costs outside its control – cost of planes (fixed costs), interest (borrow in the same international markets), salaries especially of pilots.
No Indian airline company has set up a pilot training school – and that is surprising. India could have easily set up many pilot training academies – with a tie up from schools abroad. This school could have easily become the pilot supply hub for the rest of Asia -or even rest of the world. Why did we miss this bus? not sure
However for an airline to make money for the shareholder seems to be difficult – given the current scenario in the lean months. However the encouraging news is there is Gen X which has perhaps lost its ability to travel by road or rail…and are happy hopping into 40 minute flights for 2 day holidays. In another 5 years these kids would be married, have kids etc.
Hopefully they will ensure that there is enough demand.
The hotel industry on the other hand has set up many, many colleges – Taj, Oberoi, …and many others have set up training institutes and colleges. They do recruit a lot of people, train them and absorb them. However not all the students stick to the industry – in fact I see them running away to the other sectors like retail, banking, etc. because of the long hard hours that they have to put up with in the hotel business..
A real dichotomy…what does one do…..depends on which industry one is from. Even if they are similar industries, strategies seem to be so different….
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