Originally Posted by
Rabbitwear
The Airlines need to have Cadet schemes that are fully funded by the Airline ,
Problem #1 - Liability for the operator, Add's debt to the balance sheet.
Problem #2 The operator will have to bear some or all of the financial risk for failures. Who is going to sign up to a deal where they owe $200,000 without a job? Chicken and the egg problem - you have to prove you can be a pilot before someone will help your to pay to become a pilot.
The training could have a $200,000 5 year bond that is deducted pre tax for the first 5 years of employment , this way everybody wins !
problem #3 Is education tax deductible prior to getting a job that requires that education? If not, it must come out of post tax pay.
problem #4 Other operators have incentive to poach and pay out the bond as they don't have to take the expensive risk & liability, plus they are getting a proven performer.
I don't believe that Australian operators have yet come to the realisation that we will need to go down the path of creating a liability for themselves just to keep the planes flying. This will happen, but we need a major crisis before this happens. We are not there yet...