Qantas Training Centre Development in India

Essay by landyxyUniversity, Master'sB, January 2007

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This report to the Board of Qantas explores the relative costs and benefits of establishing a training centre in Mumbai, India. The centre will train both pilots and cabin crews, with a specific focus on security training. Due to foreign ownership restrictions limiting investment to 74% of any airline venture, a joint venture arrangement would be appropriate. A joint venture with a domestic carrier will also provide the project with significant advantages that come from having local knowledge. There are currently a number of Indian airlines that are considering the establishment of a training centre, including Air India, Air Deccan and Kingfisher Airlines (Francis 2006). Accordingly, a time critical opportunity currently exists for Qantas to initiate a joint venture with a domestic carrier.

This joint venture will leverages Qantas' own knowledge in operating a training centre, and take advantage of the domestic advantages in India such as a large population of highly educated candidates wanting to become pilots and cabin crew, as well as the current undersupply of adequate training centers to meet the growing demand.

General environment

The Republic of India is the seventh-largest country by geographical area and located in South Asia. It is the world's second most populous country, and the largest democratic republic in the world. The economy of India is the fourth largest in the world as measured by purchasing power parity (PPP), with a GDP of US$3.63 trillion (CIA Factbook 2005). India has been growing at a rate of 8 per cent since Prime Minister Manmohan Singh took office in early 2004 (Ryan 2006).

India has a rich and unique cultural heritage, and the diverse sub continental populace that has managed to preserve the 5000 years old traditions, whilst absorbing customs, traditions and ideas from natives, immigrants and invaders. Many cultural practices,