BUSINESS 2000: In the months after September 11th, as airlines plotted their way out of an industry freefall, commercial aircraft rested in hangars and contract personnel waited for the phone to ring for their next assignment.

Since then the fortunes of low-cost airlines such as Ryanair, Easyjet and Go have taken off, some of the national carriers such as Air France are considering recruiting more staff, while others such as Virgin Atlantic are planning to extend or replace their fleet of planes.

"We have lived through it," says Mr Tim Shattock, chief executive of Parc Aviation, the world's leading supplier of contract personnel to the aviation industry, operating in more than 30 countries.

"The aviation industry is a cyclical industry, with peaks and troughs; it is quite notorious for that," he continues.

"We have seen an industry in recovery in recent months. Aircraft that were temporarily parked are coming back to service earlier than planned and, on the people side, we're finding that the airlines are in upbeat mode."

But with major airlines running into disputes with unions over the terms of redundancy and early-retirement packages for core staff, some may be hesitant to recruit on a permanent basis and increasingly turn to contract pilots and aviation engineers to ease shortages during seasonal peaks.

According to Parc, flexible employment agreements give companies a competitive advantage.

"We're in more dialogue with senior management now," says Mr Shattock. "One of the principles we put forward to almost every airline is to work on an 80:20 basis. If you require 100 pilots or engineers, hire 80 or 90 on a permanent basis but use contractors for the rest."

Airlines in phases of rapid expansion, including new route trials, provide opportunities for contract workers: a high rate of growth in the amount of air traffic means Asian markets are of particular importance.

"In our business plan, we certainly see the Far East as an area where we can grow substantially," Mr Shattock says.

Japan is Parc's largest market and the company also works with Korea's second-largest airline, Asiana.

Contract assignments in the Far East can be an attractive alternative for pilots who are sick of the London Heathrow to Dublin route and want to spread their wings. But the main advantage of working on a flexible basis for flight crew and aviation engineers is that they can work just six to eight months of the year if they choose, covering the April to October summer period. Assignments in the Far East tend to last much longer.

Quality-of-life issues are increasingly important, according to Mr Shattock. "It's not just about the money. People want reasonable schedules, time off to see their family," he says.

Mr Michael Landers, assistant general secretary of IMPACT, the union representing pilots in the Republic, is more cautious about the use of flexible personnel.

"In general we would see contract work as less favourable than normal employment. The long-term prospects are less secure and there is no pension provision. Having said that, there is a bit of a tradition in the aviation industry of people taking contracts abroad in the Middle East and Far East, where the rate of pay is higher. It's very much a matter of individual choice," he says.

But as troubled airlines serve redundancy notices or go out of business entirely, contract assignments may no longer be simply an option for pilots nearing retirement age but a lifeline to highly trained, highly experienced people. For example, Australia's second-largest domestic airline, Ansett, collapsed in February, leaving Richard Branson's budget carrier, Virgin Blue, as the main competitor for Quantas, Australia's leading airline.

Quantas has announced plans to set up its own low-cost international airline, Australian Airlines, in October, but the Ansett collapse means there are still more qualified personnel in Australia than jobs available.

"The demise of Ansett was a very emotional issue," notes Mr Shattock. "It had been in business for quite some time and there was a huge lot of sadness when it finally went under. Parc have been out there on the ground recruiting experienced pilots and engineers for the Asian market and for the European theatre as well, although it can be difficult for Australians to obtain work permits for the EU."

Globally, the gloomy outlook in the aviation industry in the months following September 11th was "a temporary blip", according to Mr Landers. Aer Lingus may have issued compulsory redundancies and let go more than 40 trainee pilots, but "ironically enough, the demand for pilots is increasing", he says, and the industry may even find itself facing a shortage of experienced pilots.

Meanwhile, concerns about shortages of licensed aircraft engineers have prompted transport ministers in Britain to call on the aviation industry to work in partnership with the government and engineering unions to develop training programmes for aircraft engineers.

Training programmes are necessary for long-term growth in an industry but, for airlines wanting to capitalise on sudden rises in passenger numbers before they fall again, contract pilots and maintenance personnel are a quick solution.

"Because it takes a long time to train a pilot - over 18 months - airlines will tend to rush into the market and hire contract staff who are already qualified," says Mr Landers.

Experienced co-pilots, first officers and captains who join companies on a temporary basis require as little as six to eight weeks training. "There would be an induction course to learn how that particular airline operates in terms of flying the aircraft and administration, but there would only be minor modifications from airline to airline," Mr Shattock explains.

"It's a very exciting business at a very exciting time," he concludes. With temporary blips firmly off the radar screen and confidence in the low-cost sector, the aviation industry is once again aiming to reach great heights.