"Rex expects pilot 'bloodbath' battle"
From the Australian newspaper....
Is there any company in the bottom level of GA at the moment that doesn't have a 60% attrition rate??
Steve Creedy | February 11, 2008
AUSTRALIA'S biggest independent regional carrier is predicting a "bloodbath" this year among the nation's smaller airlines as they struggle to hire and retain pilots.
Regional Express (Rex) said it currently faced an annual attrition rate of 60 per cent for its pilot workforce and warned that some regional operators would not make it through the year.
While Rex had started its own pilot school to offset the shortage, it had still been forced to suspend some flights and cancel others.
The airline on Friday announced it would suspend its Melbourne-Griffith service as a result of the shortage.
It warned that the suspension would have flow-on effects for other Griffith flights, with a reduction in Sydney-Griffith services also expected.
It also announced it was postponing the start of the Maryborough-Brisbane route from March to September and said Sydney-Cooma flights, originally scheduled to restart in May, would not resume until June.
"No airline in the world can withstand a 60 per cent annual attrition rate of its pilot strength without catastrophic damage," Rex chief pilot Chris Hine said.
"The fact that we have only suspended 6 per cent of our services is a testimony to the dedication and sacrifices of our staff and the rapidity of management's response to this severe crisis."
Rex's troubles are part of a worldwide trend that has seen competition for pilots among airlines increasing as the industry experiences strong growth, particularly in the Middle East and Asia.
The growth of Australia's domestic aviation market - fuelled by the strong economy and the mining boom - had also been a factor, although there were signs the domestic growth rate would soften.
Smaller carriers have accused the bigger operators of targeting their pilots to accommodate their domestic growth and as more experienced flyers are recruited by international carriers.
However, the big airlines denied they had actively recruited pilots from the regionals and said the movement was a result of pilots moving to capitalise on the opportunity for better wages and conditions.
However, Rex expected its new pilot school to help offset the worst ravages of the shortage.
Mr Hine said the first 16 batch of cadets were due to graduate from its pilot school in July and it would receive about 20 new pilots every three months after that.
He said this would largely shelter Rex from the massive recruitment of its trained pilots by the main airlines. But he warned that the situation was set to get worse with all three major carriers expanding and with the start-up of Tiger Airways.
"Not all regional airlines have Rex's ability to fund their own cadet program and flying academy," he said. "I expect to see a bloodbath among the regional operators in the months ahead.
"Even QantasLink will not be spared as evidenced by its recent reduction in services to ports such as Dubbo, Armidale, Coffs Harbour, Port Macquarie, Newcastle and Tamworth. I foresee many regional operators not making it through 2008."