GAO Report: Too Few Pilots or Too Little Pay?

[underfire]

The nation's regional airlines are having trouble hiring enough pilots, the government says, suggesting one reason may be that they simply don't pay enough.

A pool of qualified pilots is available, but it's unclear whether they are willing to work for low entry-level wages, the Government Accountability Office said in a report released Friday.

One key economic indicator supports the emergence of a shortage, something regional airlines have complained of and point to as a reason for limiting service to some small communities. But two other indicators suggest the opposite is true, GAO said. Also, two studies reviewed by the GAO "point to the large number of qualified pilots that exist, but may be working abroad, in the military or in another occupation, as evidence that there is adequate supply," the report said.

The U.S. airline industry will need to hire 1,900 to 4,500 new pilots annually over the next 10 years due to an expected surge in retirements of pilots reaching age 65 and increased demand for air travel, the report said.

Eleven out of 12 regional airlines failed to meet their hiring targets for entry-level pilots last year, the report said. However, no major airlines were experiencing problems finding pilots.

Regional carriers account for about half of all domestic airline flights. One big concern is that communities served only by regional airlines will see their service reduce or eliminated. Five regional airlines told GAO they are already limiting service because of a pilot shortage.

Major airlines generally pay significantly higher salaries than regional carriers and frequently hire pilots from regionals. The average starting salary for first officers, also called co-pilots, at regional airlines is $22,400 a year, according to the Air Line Pilots Association.

Earlier this month, Wyoming-based Great Lakes Airlines ended service in a handful of small towns, citing a dearth of qualified pilots. The pilots association says Great Lakes pays newly hired first officers $16,500 a year.


GAO Report: Too Few Pilots or Too Little Pay? - ABC News (http://abcnews.go.com/Politics/wireStory/airline-pilot-shortage-report-clear-22712230)

[gaunty]

Realignment of expectations on both sides.

Qantas are in a battle to the death on this right now.

[Wizofoz]

Realignment of expectations on both sides.

Why both sides, gaunty?

If people don't want to work for the appalling regional wages, and are happy doing something else, why would they change?

It's a typical case of capitalists supporting supply and demand, right up to the point supply starts to be a problem!!

[Wodka]

I wonder if we could see US regionals looking at sponsoring foreign pilots if they can prove that a shortage exists?

[A Squared]

even out of 12 regional airlines failed to meet their hiring targets for entry-level pilots last year, the report said. However, no major airlines were experiencing problems finding pilots.


How odd. All the majors have pleny of pilots to hire. Maybe there really isn't a shortage after all.

[750k]

The reality is, there is no pilot shortage, there has not been one for 25yrs, I doubt there will be one for at least another 25yrs.
What was once a professional career is now pretty much just a hobby !

[WYOMINGPILOT]

The problem in the US is becoming more serious by the day. As the regionals park airplanes then the majors will have to accomplish their flying which was previously contracted out at cheaper regional pay scales. This will result in more hiring at the majors meaning more demand upon regional pilots to move up and creating an empty vacuum at the regional level. The new FAA rules requiring 1500 hours compounded by the extremely expensive venture to obtain all of your pilot ratings has left few willing to go that route. Even the aviation schools like Embry Riddle and in North Dakota report less than 1/2 of their students are now seeking commercial flying jobs. Aviation has become much more diverse and there are jobs in other aviation related fields. The average age of pilots will continue to increase upwards as there are not enough younger pilots to replace them. I think at American it is now an average age of 53 y.o. The sky is not falling yet but at the regional level it is reaching a breaking point, especially with summer peak travel upcoming and the US economy still strong. It will be awhile before a shortage exists at the Major level but if the economy stays strong for several years then it will become a buyers market for pilots. The fortunate thing as an Ex-Pat pilot is this demand will push up wages and salaries at Foreign airlines as pilots move back to the US from foreign jobs to pursue a position at a Major. The demand in Asia alone is mind boggling and throw in the huge growth in the Middle East and you have a recipe for a shortage of highly qualified pilots. At the entry level pilot level there are many airlines like China who have set up a cadet pilot program. I can foresee the US Majors having to go to a cadet system as the military has produced such few pilots recently and the costs of training and paying for it by yourself have risen to such high levels. Not many entry level pilots are now willing to go spend 150K for training and then have to gut out 1500 hours somehow for a chance at an entry level regional job paying 22K per year. Interesting times.

[A Squared]

As the regionals park airplanes then the majors will have to accomplish their flying which was previously contracted out at cheaper regional pay scales. This will result in more hiring at the majors meaning more demand upon regional pilots to move up and creating an empty vacuum at the regional level.

And yet that vacuum would magically vanish if the regionals started offering better terms of employment.. There's a whole bunch of guys living in China, or Dubai, or wherever, and not being happy about being there who would suddenly become *very* interested in flying an RJ, if the money and schedule were decent. And it wouldn't have to match Emirates money or Expat China money when it also meant living in the US where they want to live*, and being home a lot more, not doing the international commuting shuffle, living on that little hobby farm in the countryside instead of in an apartment in a crowded city, etc.

I'm not saying that you're wrong in what you say, I'm just pointing out that there's this complete disconnect in the companies who offer less pay than a construction laborer makes, treats their employees poorly, and and is completely mystified that thye don;t have people lining up for their poor money and poor treatment. All the while, completely failing to notice that the airlines which offer good money and good working conditions have a virtually unlimited supply of applicants for the positions they have open, exactly like the laws of supply and demand predict.



*Not claiming that the US is the only good place to live, just the Expat life ain't for everyone, regardless of where you're from.

[underfire]

There is an ever growing number of ex-military pilots in the US as well...

There isnt a shortage, there is a shortage of pay.

As the article shows, the regionals would rather park than pay.

Perhaps a round of subsidies would help the regionals change their mind, not pay more mind you. (hint, hint, wink, wink)

[mattpilot]

Is it really that big of a deal to raise the ticket price per person on a regional flight by 1$ ? That *could* go directly into the pilots pay.

Is the public suddenly gunna say "o noes, i can't afford that - how am i going to pay for my $1 mcdonald burger before flight?"

[Caboclo]

#1. Why is the GAO investigating this? It's not their problem or their business.

#2. If their research yields "unclear" results, they should come spend some time on pprune. Interesting times indeed.

[A Squared]

#1. Why is the GAO investigating this? It's not their problem or their business.

The question of whether new federal laws have resulted in unintended, negative economic consequences in an regulated industry is within the purview of the GAO.

I would expect that all the regional airlines who are unwilling to offer competitive wages and as a result are having difficulty filling positions are probably screaming bloody murder to their congressmen to do something. It beats having to offer competitive compensation