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Human Capital Challenges for the Business & Charter
Aviation SectorZiva Narendra ArifinIBCAS 2016
Ziva Narendra ArifinFAA CPL ASMEL/IRSouthwind Aviation AcademyBrownsville, TX, USA - 1997
BSc. In ABA w/. Minor in Flight OpsEmbry-Riddle Aeronautical UniversityDaytona Beach, FL, USA – 2003
FW – NC212 Ops/CSEAirfast Indonesia - 2005 – 2010
Founder/Co-ChairmanIdea Group Indonesia – 2011 – 2014
Founder/CEOAviatory Indonesia – 2014 – present
Leader - Indonesian Alumni ChapterEmbry-Riddle Aeronautical University – 2012 - present
Prologue – NBAA Insider“Projected global airline industry growth, combined with competition from other industries, means that business aviation faces increasing pressure to attract and retain the number of quality employees that it needs to meet demand.”
“We’re seeing a lot of articles about a pilot shortage, but these issues affect more than the flight deck.”
“Before, you’d post a job and you’d be flooded with quality resumes in no time. Today, the resumes are still coming in, but there is less potential in those candidates.”
“…more companies are moving to supplemental or contract crew – part-time workers – to meet their staffing requirements.”
Pointers
1. Highlights2. Insights3. Stats4. Recognizing the HC challenges5. The process chain6. The solution7. The final product
Highlights in Indonesia’s Civil Aviation
1924: First commercial flight to Batavia (Jakarta) by KLM1928: Establishment of KNILM1937: Indonesia among Amelia Earhart’s circumnavigation route1946: The birth of AURI (TNI-AU/Indonesian Air Force)1947: The first Indonesian experimental aircraft was built1949: The birth of Garuda Indonesian Airways1976: PT IPTN (now PT DI) was established1977: The “two-man cockpit” concept was conceived1985: Indonesian woman selected as NASA STS-61-H specialist1986: The 1st Indonesian Airshow1996: The 2nd Indonesian Airshow2000: Deregulation of Indonesian airline industry
Air Transport at a Glance• More than 4-billion
global passengers annual turnover
• Advances in NG technologies
• Remains as strong driving factor of world economy– Generating
income of more than 2,4-billion dollars worldwide
• More than 58-million global aviation workforce
General Statistics – AOCs
Part 121Part 135
Others (91, 137,141)
010203040
2135 38
73
0
In Effect Revoked/Suspended(Source: DGCA CAR 2016)
General Statistics – Airborne
Aircraft (hours) Passengers
Cargo (tonnes)
010,000,00020,000,00030,000,00040,000,00050,000,00060,000,00070,000,000
772,136
63,107,935
474,439192,0208,104,802
82,040
Domestic International(Source: DGCA 2014)
Aviation HC Challenges in Indonesia – Contributing Factors
• Pre-1997 crisis• Market monopoly both in supply (training providers) and demand
(carriers)• Few jobs, surplus HC especially pilots - still viewed as highly
desired career path• Good standing in global recognition - Indonesian carriers still
dominate the Southeast Asian market• Post-1997 crisis
• Market downsized, collapse of businesses due to financial incap, fewer training providers available
• Fewer jobs, higher HC surplus - becoming less/least desired career path
• Stalemate in global standing - flagship carrier losing access to the US
Aviation HC Shortage in Indonesia – Contributing Factors (cont’d)
• The 2000s - today– Deregulation of airline industry - establishment of new airlines, rise of
LCCs– New privately-owned training providers take presence, decline of
older institutions– Drastic expansion of the air carrier market, more planes, HC from
previous surplus gradually absorbed, but still very low rate of regeneration, focused primarily in attempt to achieve quantity demanded but overlooked the quality aspect
– Aviation slowly becoming a desired career path once again– Dramatic change in safety culture - high volume, low quality– Country risk and safety rating reached an all-time low by mid-2000s– Banning by the EU and FAA towards Indonesian operators
Aviation HC Shortage in Indonesia – Contributing Factors (cont’d)
• The 2000s - today– Banning by the EU and FAA towards Indonesian operators– Poor global standing– Domestic air transport market demand more than 5,000 qualified
personnel annually– More than 3,000 aviation jobs will be left vacant within the next 3
years– Absorption of fresh workers
• < 15% of pilots• > 30% engineers/technical roles• > 40% flight attendants• < 10% of FOO• < 5% of aviation university graduates
Business & Charter Aviation HC – What Are the Problems?
• Commonly produce entry-level talents
• Very minimum resources and facilities
• Still driving towards fulfilling demands of the airline industry
• Courses typically are generic
Training Facilitators
• Mainly oriented at high recruitment standards
• Very slim opportunity for cadets/fresh graduates to enter
• Has not yet seen the benefit of long-term HC investment (education)
• Safe-play following market dynamics
B&C Operators• Only less than 30% of
expenditures spent on air transport services
• Heavily depending on prevailing market conditions
• Still not yet eager to invest in aviation as long-term catalyst
• Also safe-play, the shorter the contract term the better (on client-based works)
Market/Clients
Challenges in Indonesia’s Air Charter HC – Does it Really Exist?
The answer is
“YES”,but have they been properly
addressed?
“NO”
The Solution?Always have been, is, and always will be - PARTNERSHIP
Client/Market
FacilitatorsOperators
- Invest in market research and intelligence
- Proactive marketing activities
- Think long-term – never lose faith in apprentice programs
- Provide periodic projections of air transport utilization
- Invest in sustainable HC- Put more confidence in
place
- Increase awareness of market demands
- Invest in quality trainers/educators
- Constant communications with end users
The Solution? (cont’d)Client/Market
Facilitators
Operators
InputEnforce
The key to sustainable quality HC is by strengthening mutual relationship between not only the users but also the regulator and neighboring stakeholders – delivering the right message for what the industry really needs.
USERS REGULATOR
Standardization
The Final Product• A more predictive and sustainable quality HC regeneration
system at an optimized production rate• Minimizing downtime between manpower turnover• A more balanced enrollment – training – recruitment ratio• Increase competitiveness against global aviation
workforce• Help relieve the “bottleneck” situation with current
unemployment pool• Create a more desirable career path for young talents• Business and air charter industry can enable themselves
as the “port of entry” for future aviation professionals instead of focusing their demands on experienced workers.
About Aviatory Indonesia• Founded in August 2014.• Established and managed by pilots with professional experience in operational,
managerial, regulatory, as well as academic roles. • Provide aviation services, education partnership, and business development
consulting.• Work closely with operators, academic institutions, regulators, media, and
communities.• Aim to integrate various potentials in aviation and produce solutions that benefit
the industry and its stakeholders for the long run.
