We take both from the same source. They are all self financed. A few are pre-selected through the same criteria that the FTO uses for its normal course selection criteria. The placements and any offers of employment are still dependent on achieving the requisite standard.
"Tagged" in most cases, simply means that the FTO will endeavour to find a placement wth a partner airline on successful completion of the course. When candidates apply for selection with the FTO the successful ones complete a course of training that includes an enhanced MCC course and in some cases (depends on the partner airline) inclusive type rating training. A placement should then follow with that partner airline for a period of 6-8 months. Offers of employment may then dovetail from those placements if the partner airline has a requirement at that time, and if the cadet has progressed through training to the requisite standard.
For candidates that are not selected through the FTO's initial screening criteria, there is often the option to assume a higher degree of risk, and embark on the same courses, with the ability to follow the same pathway to airline placement provided that the requisite standard is maintained throughout the course of training. For these candidates the enhanced MCC course may be an additional cost. Any additional type rating costs would be the same as for the other cadets.
In either case, the training costs or bond monies are financed by the student.
A lot of people (understandably) have become focused on what happens with one or two airlines that have dominated the marketplace through a period of severe recession. Whilst their expansion may well slow down, others are coming to the fore, and any recovery should see a transference of expansion to other companies and their respective markets. Then there are the rapid growth markets on other continents. Already there is ab-initio training supply into these markets, and that is also likely to expand (subject to all the usual variables and caveats,) in the forseeable future.
If the "hold pool" numbers stated in a previous post are correct, and given that this is the time of year I would expect them to be at their lowest, then that is quite good given the numbers completing courses on an annual basis, and the current economic realities. Last year at this time, the same "hold pool" was empty.
Where expansion is now occuring, the resultant recruitment needs are unsurprising: Experienced type rated pilots (from other airlines,) experienced non-type rated pilots (from other airlines and the military) and cadet pilots from the selected FTO's. Each airline will set their own requirements, but I am currently seeing each group represent an equal measure of one third from each source. As I say, nothing in this is surprising. The only real growth sector as a percentage is in the supply of cadet pilots. The other thing worthy of note (although also unsurprising) is in the movement of ex-cadets (who are now in the type-rated experienced group,) moving from companies with weak T&C's, to those with better ones.
Most of these cadet placements, whether the terms are perceived as good or bad, still results in currency of licenses, ratings and medicals being paid for by somebody else. They result in progression and experience. Todays 200 cadet starting with an airline, is January 2014's 1000 hour cadet. January 2016's 2500 hour experienced type-rated pilot. January 2018's command candidate.
Expansion will certainly see the deck of cards being shuffled, however that deck of cards is likely to be the Aces and high picture cards as far as the airlines are concerned. Todays cadets are in that group.