Airline Industry - Is it for me?

As the time to land at IIM draws near, I am already thinking about career opportunities post my MBA. One industry that has caught my attention has been the airline industry in the Asia-Pacific region.

If I as a student carry any leverage in the type of companies I want on campus for recruitment, my vote would certainly go to some of the well established as well as to the emerging airlines in the Asia Pacific region. Let's take a moment to analyze the airline industry.

1. An expansion in a regional economy has a parallel effect in the transportation industry. As businesses grow, the need for business travelers to travel grows simultaneously. Given that the larger percentage of passenger revenue for airlines comes from business travelers, rather than from leisure travelers, the market potential in the emerging markets is very strong. The acceleration of numerous private airlines in India, China, and South East Asia demonstrates this notion. In addition, numerous airport infrastructure improvement projects in India and elsewhere further endorse the notion.

2. Looking at some of our backgrounds, and how we (me and my classmates at IIM) would fit into the airline industry's human resource pool, here is what comes to mind:

• IT background - There should be numerous management opportunities available to revamp or innovate the airline's ticketing systems, baggage tracking systems, flight tracking systems.
• Finance/Accounting Background - These folks could get opportunities to manage the financial state of the airline, analyze certain mergers and acquisitions of competing airlines, develop strategy on how to stay lean in expenses by analyzing salaries given to employees, how much is spent on components/parts procurement, airline meals, fuel, airport landing and takeoff fees.
• Supply Chain / Operations background - Those of us with this background certainly could manage the overall supply chain value add by analyzing the best medium to purchase parts, entertainment systems, airline food, seatings, engines etc. In addition, these folks could also play the role of a company advocate to Boeing and Airbus in laying out the airline's business requirements.
• Middle/Senior Management background - These folks could land coveted positions in regional management positions in different regions across Asia-Pacific and abroad, where they would be managing the airline's presence locally, as well as promote the airline.
  

3. Of course, the state of the airline industry is not all cream. Stiff competition, escalating fuel prices, international security mandates and laws, crowded skies, no margin for error in safety regulations, are just a few of the challenges that this industry faces. But, that's where we would come in and develop strategies on how to stay profitable in spite of these difficulties.