Saturday, March 12, 2016

Low pay + high costs = pilot shortage.

The pilot shortage continues to hurt airlines as smaller carriers and airports struggle to provide service.  Yahoo News reported this week:

Mid-sized and regional airlines in the US are suffering from a pilot shortage that could threaten the health of the broader US aviation industry.

Some regional carriers have trimmed about five percent of their flights, cuts that have hit smaller airports, such as in Redding, California, or Erie, Pennsylvania.

The staffing crunch could also constrain traffic for larger companies like United Airlines and Delta Air Lines that depend on the mid-sized companies to serve rural consumers and feed customers into their networks.

"It's becoming a crisis at some carriers, resulting in the cancellation of flights and other serious disruptions," said Patrick Smith, a pilot who runs "Ask the Pilot," an aviation blog....

Things at Republic came to a head last July, when the airline acknowledged cutting four percent of its flights due to a dearth of pilots. Delta subsequently filed suit against Republic, alleging breach of contract....

Pay gap

Aviation industry insiders cite a number of factors for the drop-off in pilots: longer working hours, contentious relations with management, fewer job protections and industry turnover with the expected retirement of some 18,000 pilots through 2022.

But the biggest factor is compensation.

Regional carriers pay pilots an annual average of $27,350, according to Paul Ryder, ALPA Resource Coordinator. That compares with an annual salary of $103,390 at large airlines, according to US Labor Department data.

Aspiring pilots must pay between $150,000 to $200,00 to obtain their license, Ryder said.

Three years ago, US regulators stiffened the requirements on pilots following a 2009 Colgan Air crash near Buffalo, New York, that killed 49 people.

Commercial pilots must now have 1,500 hours of flight time before qualifying for their pilot's license, compared with just 250 prior to the rule shift.

Adding to that burden is a shift in the broader aviation industry as regional flying has grown. Up-and-coming pilots once viewed the regional carriers as a stepping-stone to a job with a bigger company, said Smith.

"Today, the regional sector accounts for half or more of all flying, and pilots are realizing that a job with a regional often means an entire... career with a regional," Smith said.

"Fewer pilots are willing to commit hundreds of thousands of dollars into their training and education for a career with such a limited return on investment, in what has historically been a very unstable industry."

Steps taken by some regional carriers include boosting compensation, such as offering a bonus to qualified pilots of $80,000 spread out over four years, said industry consultant Kit Darby.

Companies are also granting bonuses of $500, $1,000 or $1,500 for pilot referrals, Darby said.

"An airline that wants to be able to recruit new pilots and to retain its current pilots needs to offer reasonable compensation, fair worklife balance and some career path with stability," said pilot Ryder.

"An airline that does not offer that typically has seen challenges in attracting employees."
Rest of article.  

Kingfish note: This shortage directly impacts the Jackson airport.  The shortage makes it much more difficult for Jackson to attract smaller and lower-cost airlines.  Economics are economics.  People are not going to pay so much money to become a pilot for such a small salary.  Return on investment applies to students as well as portfolio managers.  Smaller airports such as Medgar-Evers  will suffer until the the hourly requirement is lowered or pay is increased. 

6 comments:

Anonymous said...

I don't have a dog in the fight but changing management of the airport is not going to solve the number of flights or airfare problem. Ask Memphis, Shreveport, Or any number of similar airports.

Anonymous said...

the supply depot is the military. we've been at war for the last 15 years, so the military is keeping pilots longer now.

Anonymous said...

5:32 pm If you are a Mississippian, you should have a dog in this fight.
This is a political move and is not principled and not in the best interest of the State as a whole.
Aside from the fact that the well being of our Capitol should matter to everyone, if you let the legislature aid one county and/or developer to the detriment of another city or county once, they will do it again. Next time, you might not like it that your ox is being gored.

Anonymous said...

There is not a shortage of pilots. There is a shortage of pilots willing to work for the wages offered. If pay were elevated to a living wage or even professional truck driver wages, we would have enough pilots. It's an Economics 101 supply side problem that requires adjustment of the curves. Current model is not sustainable.

Anonymous said...

11:02--so either

1-pilots at 'legacy' take a pay cut to supplement 'regional' pilots wages (more money to the regional carrier funneled down to pilots)
2-executives take a pay cut to supplement 'regional' pilot wages--(again-put the money into the regional carrier pilots salaries)
3-charge more for ticket prices to make up for the difference

or is there some other solution you could propose?

Breaker One Nine said...

I know what truck drivers make. That claim is bullshit. Nor do pilots have to pee in a jar and keep it behind the seat.


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If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

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