A new Indian startup airline, Akasa is all set to offer stock options in a bid to attack more staff. The airline is backed by reputed investor and billionaire, Rakesh Jhunjhunwala. The strategy used by the airlines to lure in more staff is a technique common to technology startups. Looks like the startup is trying to get a strong grip in the highly competitive air-travel markets after taking its first step. Whether the strategy will be successful in enhancing the influx of staff remains to be seen. The month of May will bear witness to the first to the airline’s very first flight.
The What and Why
It is a known fact that there is a major dearth of talent and skill in the aviation industry which has an adverse effect on its growth and progress. Perhaps this is the reason why Akasa is taking a rather unconventional step to attract more talent to its fold. Instead of offering company shares to an exclusive group of senior executives, the company plans to grant its shares to a bigger pool of employees on the top.
The aviation industry has been badly hit by the pandemic which put suspended air travel for a long period of time since the fear of transmission of the virus was running high. This made a career in the aviation industry rather uncertain leading a number of pilots to take early retirement or switch careers. Let us take a look at what the Chief Executive Officer, Vinay Dube had to say about the situation,
“We want to have an organization that is very tight-knit in values, but diverse in experiences, genders, locations within India. We were saddened by the plight of employees through the pandemic, some of the bankruptcies that have taken place in Indian aviation, and we wanted to create homes for them where they are happy.”
This strategy of Akasa has gained a nod of approval since it prioritizes the satisfaction of employees. This is rather in contrast to the past when the main priority was customers and enhancing customer satisfaction. Well, after all, it is rightly said that desperate times call for desperate measures and this is a rather desperate and uncertain time for the economy at large.
Akasa has support from some notable veterans in aviation and the company has already hired employees for back-office operations. The plight of the aviation industry in the present throws light on some indelible scars left by the pandemic and it will take some time and effort to recover from the blow. Thus new strategies that act as a boost to growth and recovery are always welcome.
