Aircraft, pilots now come cheap

New Delhi: The recent bankruptcy of four global airlines in the US and Hong Kong has turned out to be a bonanza for Indian private carriers looking for aircraft at low prices and experienced pilots.
Low fares, high capital costs and high pilot salaries have driven most Indian carriers into the red. The bankruptcy cases abroad, industry insiders said, are a good opportunity for them to reduce their losses with some inexpensive acquisitions.
Budget carrier SpiceJet has decided to hire at least ten flight commanders from these airlines, who suddenly find themselves with no work to do.
Over the last two months, three US airlines — Skybus, Aloha and ATA — and Hong Kong-based Oasis have gone bankrupt and downed shutters on their operations. Another US carrier, Frontier, is learnt to have recently filed for bankruptcy. Most of them are no-frills low-cost carriers.
SpiceJet Chairman Siddhanta Sharma said this was a good opportunity to grab some experienced commanders. “We expect that 50-60 pilots might be available (from the ones which are closing down), of which we plan to induct ten. At a time when the industry is so short of experienced commanders, a good supply of these pilots from any source is always welcome,” said Sharma.
Company executives said that at a time when pilot salaries are shooting through the roof, it might be possible to induct these pilots at contracts less than their usual salaries.
24/04/08 Anirban Chowdhury /Business Standard