Cadet Pilot Program
This analysis considers most favorable situation for the program in that the assumptions are
There are no Delays
The student clears all checks & papers in the first attempt.
The Airline salaries are at the present market rate.
Time Value of money
Many a times we make the mistake of not considering the time value of money but only considering the amount we are paying. This becomes a significant factor in a cadet program since huge lum-sum amounts are charged by the Airline. The below analysis is based on the pricing published by one of the Airlines in its cheapest Cadet Program where the total cost is projected under Rs 90 Lac. So, we will take for example that a person joins this cadet program in Jun 2019. Since the Program is for 2 years approx (104 weeks), this person will start earning salary in Sep 2021. Therefore, we can take 2021 as the base year for comparing the returns on the investment. We will compare the future value of the investments made by the candidate from 2019 -2021 and value of the salary earned by him in the next 7 years which is the contract period.
Future Value of Investment made Today
Value of Future Salaries earned based on Benchmark Figures (Take home after Tax deduction)
Total Loss to the Candidate is Rs 20 Lakh provide everything goes smooth with no complications in training, medical etc..