Not sure I agree with Mad_Jock's analysis. From my understanding of 'modern' airline 'sponsorships' (lets call nu-sponsorship!) from my close friends, is they seem to work as follows;
Sponsoring airline gets to select the 'cream of the crop' (let me come back to this statement and qualify it before you flame-mail me) from the population of new students. They then 'commit' (commit does not have same legal meaning as the words promise or contract) to offer the sponsored cadet a job on successful graduation (conditions apply) if there is one available at the time. They then pay for the cadets TR. Result: cost and risk to the airline: low.
The cadet is then paid a reduced salary for X years and they are paid an additional amount through a tax efficient mechanism which means the rate of tax on the additional element is zero or extremely low. This second element is designed to pay back the loan. If you equated this on paper, you would probably find that the cadet would earn less over the X year period than a direct-entry pilot. However, you might find that disposable income wise the two were more on parity.
Ok, 'cream of the crop'. From personal experience I have witnessed that people who pass sponsored selection achieve considerably higher assessment results than general applicants. Whether they are more intelligent or have just practiced more brain improving techniques/games than the majority is debatable! But I have to say, turning up for selection and not having attempted to improve your mental arithmetic or interview skills is just a waste of your own time and puts you further away from your ambition! So if you are going to go for selection, remember the rule of the 6Ps (Prior Planning Prevents P*** Poor Performance)!
