Tuesday, August 21, 2012
Airline Pilots: Coming Up Short
Regional and foreign carriers are worried as industry projects deepening pilot shortage
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The most dramatic change came in 1978 when the Airline Deregulation Act became federal law, removing government-subsidized airfares and allowing free-market competition to drive airline fare prices. The result was lower fares and more people using the airline system. Unions lost some of their bargaining power as smaller profits drove the major airlines to drop point-to-point routes in favor of hub-based routing. Regional airlines started to boom, but they hired less-experienced pilots at salaries below those of the major carriers. Fast-forward to today, and a shiny, new regional first officer starts with a paycheck of around $25,000/year. But a new era for pilots appears to be on the horizon.
Numbers are starting to emerge—especially from foreign airlines—indicating that the much-hyped pilot shortage may be a reality. Regular readers of this magazine know that we've been talking about a pilot shortage for the past three years, with some folks harrumphing and shaking their heads that it could never happen. Fasten your seatbelts, because the run-up has already begun.
This July, Roger Cohen, president of the Regional Airline Association, spoke at a luncheon in Wichita, Kan. He was addressing the very subject of a pilot shortage. Because of the way the airline hiring system works, regional airlines are a sort of "farm team" for the major carriers.
Regionals use smaller aircraft and fly short hops, and thus employ pilots with the least qualifications. It's standard practice for a newly minted pilot with advanced ratings to start as a first officer at a regional. Because of that, it's at the regional airlines where a shortage will first be felt. There was obvious concern in Cohen's voice.
"The supply of pilots is going to be a major, major issue for us," Cohen said. "The pilot shortage is coming, and it's going to have a real-world impact."
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