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Have you ever thought of looking at this from another point of view. The fact that the person in question did not get into Qantas might have nothing to do with his ability, like a lot of people. Qantas are smart enough to know many people who miss out are very capable pilots. It is the whole package they look at,(not saying they never get it wrong) hence why they want this person in another role. They probably thought at this stage of this persons career an S/O positon would not be suitable, nor satisfying for them. It is like GA when a person leaves to a better job, then may lose it and want to come back but usually the company isnt to keen because of the step back for that person and all the motivation/morale/attitude issues that come with this situation. The S/O position is seen as a learning position, and you are almost like an apprentice. So like anything why would you want to get a very experienced person and put them back in this role, why not put them in a position more sutiable for them at this point in this persons life, where they can actually make use of all their experience, hence the management position.
Those of you who are so ready to shoot down the Qantas selection process, take a hard look at the Virgin process, how many experienced guys do you know who cant even get an interview!!!