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African aviation liberalization to worsen its HR-related issues?

Growth of Africa's economies has accelerated. According to a new report by the African Development Bank, the continent's growth is projected to accelerate to 4.8% in 2014 alone. With the increased consumer spending and a new middle class on the rise, the outlook for African aviation industry is also positive. Nevertheless, developing its full potential still remains a challenge, especially with regard to proper HR-support

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Lower pilot’s pay keeps the profit away?

During the last decade, airlines have added thousands of new destinations to their networks and are expected to carry over 3.3 billion people in 2014. At the same time, with oil prices still averaging at $108/barrel, they continue to struggle with profitability and thus implement different money-saving strategies, including those requiring significant personnel salary cuts. However, there are reasons to believe that these measures are in fact holding back the industry from further growth.

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Evolving LCCs call for more flexible HR solutions

With fuel prices accounting for up to 30% of airlines’ operating costs, the carriers are still struggling to remain profitable. So far LCCs have been an exception to this rule, thanks to cheaper operating costs and quicker turnaround times. However, with even such players as Ryanair reporting reduced profits, the carriers are constantly in search for ways to reduce expenses. As a result, while the traditional low-cost model is still far from broken, many low-cost carriers have gone beyond its original remit. Responding to such changes, MRO-related HR strategies should evolve accordingly.

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A slow-down in growth as a way to solve HR problems in Russian aviation

In 2013 Russian airlines carried almost 85 million passengers (14% more than the year before), making it the fourth year of the two-digit traffic growth in a row. The results of March 2014, however, were much more disappointing as the traffic rose only 2.5%, compared to a 26% increase of the same period last year. While such a significant change might become a headache for many regional industry players, it may in fact spell good news with regard to HR-related troubles in the country.

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