Pilot Shortage looms for NZ
Sunday Star Times - Sun 14th Sept
Taxpayer lands the bill as pilots thin on the ground
14 September 2003
By RACHEL GRUNWELL
Taxpayers face the possibility of another Air New Zealand bailout as the aviation industry faces chaos over the looming retirement of the baby boom generation.
Employment Minister Steve Maharey has recevied a report from the Aviation Industry Association which shows large gaps appearing in the number of qualified commercial pilots in New Zealand.
There were 1.125 million babies born in New Zealand between 1946 and 1965 - who are now heading towards retirement, raising fears of a shortage of experienced pilots as well as a national work force shortage.
The association's review also reveals the industry is being hit by overseas companies poaching our qualified pilots.
It is understood Cathay Pacific alone recruited 20 Kiwi pilots last year.
The association met Maharey last week to discuss how many pilots need to be trained to meet industry requirements in the future.
Maharey will prepare a cabinet report based on the association's findings on September 29 so the government can then decide how much taxpayers' money should be used to train pilots.
"Taxpayers have some responsibility, but the industry has to pay as well," said Maharey, who was briefed on Friday on the association's findings.
The association's review was spurred by the government's proposal in May, which included capping the amount students allowed to borrow under the loan scheme to around $6500. This would particularly affect trainee pilots because it costs about $60,000 to learn to fly.
The government wants to reign in large student loans - particularly for aviation students. The 10 biggest individual student loans paid out last year went to aviation students, with one receiving almost $140,000.
Talk of capping trainee pilots' cashflow meant the association had to look at how many pilots it needs in training to meet growing industry requirements.
Irene King, chairwoman of the assoication's transport division who has been working on the review, said up to 800 people learn to fly each year and it appeared this number of students could need to continue to be trained each year to meet industry demands.
"The government is saying they will only fund X amount of pilots to undergo training. But the review looks like it will say they will have to pump in this money and crank through 700-800 pilots a year to be able to fulfill the needs of the jet operations,"said King.
Air New Zealand employs about 1000 pilots and there are about 3500 in the industry - a big proportion of which are from the baby boom era.
The review surveyed 1241 pilots, 300 of which were aged 51 years and over. In the next age group 41-50-years, there were 435 pilots; 382 pilots were aged 31-40 years; 127 in 21-30 years; and seven pilots aged under 20.
King said it took six to 10 years to train a pilot for jet operations.