The Hindu Business Line : Civil aviation cos fly abroad for foreign talent

Advantages
Having an expat helps in international networking, instils confidence in the fledgling airline.
An expat who has had hands-on experience would be better placed to come up with more practical cost saving ideas.

New Delhi , Oct. 6

Call it the tale of two sectors if you must, but policy watchers have come across an oddity in the foreign direct investment sphere.

India allows telecom companies to have FDI from foreign telecom companies but prohibits foreigners from holding top posts in such joint ventures.

Indian civil aviation companies, on the other hand, are not allowed to have tie ups with foreign airlines, but the Indian companies can and do appoint foreigners to the top posts.

Foreign CEOs

So what does an expat CEO get to an airline that an Indian person cannot?

Aviation industry sources unofficially point out that a big-wig from the international civil aviation field brings in many advantages. Take the case of Mr Wolfgang Prock-Schauer, the CEO of Jet. He was formerly Chairman of the Star Alliance Management Board. In the recent past, the airline has signed up with Swiss, Austrian, Thai Airways and Lufthansa, all Star Alliance partners. Kingfisher Airlines too had hired Mr Nigel Harwood, a former Vice-President (Sales) of Airbus Industrie, at a time when it was deciding on fleet expansion and choice of engines for the airplanes. Mr Harwood, however, left the company later.

The Indigo Airlines President and CEO, Mr Bruce Ashby, has had long experience in the US aviation industry. Deccan Airways has an expat, Mr Warwick Brady, as COO with long experience in the operations department of Ryanair, the low-cost airline of the UK.

The message from the industry is clear — having an expat from the international civil aviation field helps in international networking for a start-up and also instils confidence in the fledgling airline on a number of issues, including tying up finances.

There are other advantages too. "They are good in the conceptual stage. Here the private players are new, while companies abroad have developed and seen highs and lows. An expat who has hands-on experience would be better placed to come up with more practical cost saving ideas," said a senior Indian official of an airline.

Many feel that it is the blend of foreign expertise and knowledge of the local market that provides a winning formula for an airline. While expats have a better idea about operations, the locals are required to go through the maze of regulations and other infrastructure issues.

"We are not doing anything innovative or brand new. We may have a better idea about pricing, how best to utilise the aircraft and manage issues connected to day to day operations, but we would require local people to guide us through the maze of regulations and get over local infrastructure issues," said an expat employed by an airline.