Your opinion on Budget Airlines in developing countries.?

Anyone with comments beyond Adam Air. These folks have aspiring millionaires able to bring their financial network to bear and buy flight equipment. Can it happen? or is it just another example of jumping on the Pork Barrel. Some Budgets like Air Asia and Jet Star seem to be customer orientated. I know most of the aviation energy expended drips under pressure (i.e. Ex Spurts) won't have a clue but who cares about the evolution of dumbness. Serious pile-its would know this is the best employment opportunity.

I'm confident Wanna-Be's would have no opinion because if they did the energy would be towards applying for same. Except for the career keyboard experts who've already established their income and trailer spot.

Before the Keyboard Commandos report me this is the aircraft section of Transportation and has no relevance to flight chartereristic other than Virtual Reality. i.e. pigs with yokes. Used to be pigs in a poke. Old timers would remember the poke gave opportunity to man-handle the pig.

Edit: It's hard enough to get a domestic job. I thought a challenge in culture would be a good test. I'm confident there is no one in YA that understands Managements need to become more intimate with operations. Just keep laughing and some day get a passport

1 Answer

  • 1 decade ago
    Favorite Answer

    Budget airlines or legacy airline makes no difference. The Harvard bean counters that ran the US airlines like Frank Lorenzo, Carl Icahn, Steven Wolfe and many others did nothing but ruin great airlines like TWA, Eastern, Continental, US Air and United, and a whole bunch more. The geniuses in Europe are not much better, so don’t be caught in the trap about type of airlines.

    Now there are shoe string airlines and well set airlines. Take a company like Air Arabia in the Gulf. This company started 7 years ago in an area the world said was impossible but did quite well.

    Now they put the money into the operation and got people that knew how to run an airline (the CEO was former BA). They say imitation is the best form of flattery. The whole region began to copy ABY’s success. India started 12 companies and the Gulf stated another seven companies. Even the UAE (where G9 is based) started Fly Dubai. Immediately after a few years of success, Air Arabia had over 30 new competitors within the region. In addition, as quickly as some came they left.

    All during that time, the competent management followed their course. As others had troubles, they pursued their objective with vengeance. As the industry fell into doldrums in 2008 and 2009, ABY paid stockholders 10% dividends year over year. I must qualify my statement - I am a stockholder.

    In 2009, the little engine that should not was the most profitable airline in the world. More than all those other guys in Germany (Lufthansa), Britain (BA), France (Air France) etc.

    The point is look at the management, look at their plan, look at how they capitalize themselves and look at how they treat their employees. For example this same little company (Air Arabia) pays their average Captain about $210,000 US a year not including benefits like school ($28,000), vacation (45 days a year), medical (complete no deductible) etc after tax.

    So you asked about Adam Air; well look at their structure. Their pay is difficult to find but comparable to Lion Air (another Indonesian airline). Their max salary for a Captain is $2,600 a month with 12 days vacation a year. They only send people on the company airplane so if you do not live on their route structure you are out of luck. By contrast Air Arabia sends their pilots to their home of record – so Brazilian pilots get paid flights to Brazil, US to America, Russians to Russia, Canadians to Canada etc. (as does all airlines in the region Emirates, Etihad, Qatari etc but you were talking low cost airlines.)

    So if you were a Boeing 737 pilot would you work for Adam Air and make $2,500 a month or Fly Dubai (flying the same airplane) and make $190,000 after tax without school, etc?

    Sure you can try and argue the cost of living, but first thing it is not that much different and where is a nicer place to live - modern Dubai (called the Las Vegas on steroids by Money Magazine) or anywhere in Indonesia?

    Would you work for an Indonesian airline, get 12 days vacation a year, and have to buy your own ticket home, or would you work for Fly Dubai and get to sit First Class on Emirates whenever you wanted and get 42 days vacation a year?

    So think about your question – who is the garbage airline and it has nothing to do with Budget airlines. United, American and Continental Airlines pilots don’t make that kind of money on those types of planes!

    However, more importantly who do you think has loyal employees? When Air Arabia started, the money behind the company made sure to give a better than fair share to the employees. Not the billionaire boys club like at Adam, who see employees as tools. Air Arabia, Fly Dubai, Wataniya, Jazerra, NAS are all low cost airlines that pay their employees well, treat them better than average, provide the best benefits in the world and yet are all low cost budget airlines that make a great profit for stockholders.

    Unlike operations like Ryan Air and Easy Jet these operations heeded the words of the most successful airline ever Southwest. Herb Kelleher said, “Have a good idea, treat your customers well and treat your employees even better.”

    “A company is stronger if it is bound by love rather than by fear.” Herb

    “A sure road to financial doom is when an airline examines employees while considering cost reductions.” Herb

Still have questions? Get your answers by asking now.