Rex and the Media Release
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Rex and the Media Release
Media Release
9 October 2007
REX WARNS OF LOOMING CATASTROPHIC SHORTAGE OF PILOTS IN AUSTRALIA
Regional Express (Rex) today warned that Australia is facing a severe shortage of pilots and that this will turn into a crisis in 12 months time as demand by the larger airlines intensifies to cope with their unprecedented expansion plans.
Commenting on this shortage, Rex Chief of Staff Jim Davis said "Already some airlines are struggling to find enough pilots to crew their regular schedules and many are resorting to cancelling flights to cope with the situation. The Rex cancellation rate, for example, is now running at four times historical levels. The latest DOTARS statistics, which are for July, show Rex with 0.9% of flights cancelled, Qantas at 1.6%, QantasLink at 1.0%, Virgin at 1.1% and Jetstar at 0.3%.
"However the situation is predicted to get much worse. Based on industry feedback, we estimate that the net additional requirement for pilots will be of the order of 1,800 over the next two years. The supply of new Airline Transport Pilot Licences (ATPLs) every year in Australia is less than 400.
"It is obvious that the major carriers will not allow their brand new jets to sit idle on the tarmac. They will do everything they can to fill up the shortfall by raiding the regional airlines, general aviation, flying schools and specialist organisations like the Royal Flying Doctor Service, something they have already started doing in earnest. Of particular concern will be the loss of experienced flying instructors to the airlines.
"The smaller operators have no defence against such massive recruitment as they are in no position to match the salaries and conditions of the large carriers. Over the last three months, more than 20% of our pilots have been poached by Virgin, Jetstar and Qantas and I am sure the situation is similar or worse in the other regional carriers.
"It is almost too late to avert some of the disastrous consequences in Australia of the looming pilot shortage as it takes at least eight months to train a new pilot. We foresee the possibility that many smaller regional cities of below 30,000 passengers per annum will no longer have an airservice as regional airlines are forced to concentrate on the bigger and more profitable routes. Also we foresee that some regional airlines and General Aviation businesses will be unable to maintain their operations as they struggle to keep up with the massive turnover of pilots.
"While Rex has taken a big hit recently, we currently have our full establishment of pilots. However 15% of them are undergoing various stages of training and will be phased in over the next two months.
"Rex is fortunate in being able to attract a sufficient number of applicants to join our ranks. Furthermore our very healthy financial situation has allowed us to implement a cadet scheme whereby 40 cadets annually will be sheltered from most of the cost of the pilot training in return for a five year commitment. We are also in discussions with several parties to run our own flying school so that we can be assured of a regular supply of pilots of the high standard that Rex requires.
"Rex has done all it could and we call on the Government to respond to this looming crisis by urgently implementing similar bold and decisive measures. The high cost of flying training, estimated at around $80,000 per individual, is the main reason why there are not enough commercial pilots being produced today. If the government can subsidise the education of lawyers, accountants engineers and other professionals, surely it can recognise that the piloting profession is equally worthy of assistance. Today there is not even a fee loan scheme outside of the tertiary institutions that aspiring pilots can tap into to turn their passion to reality" Mr Davis said.
Rex is Australia's largest independent regional airline operating a fleet of 34 Saab 340 aircraft on 1,300 flights weekly to 25 destinations from Sydney, Melbourne, Adelaide and Brisbane. The Rex Group comprises Regional Express, air freight and charter operator Pel - Air Aviation and Dubbo based regional airline, Air Link.
END
9 October 2007
REX WARNS OF LOOMING CATASTROPHIC SHORTAGE OF PILOTS IN AUSTRALIA
Regional Express (Rex) today warned that Australia is facing a severe shortage of pilots and that this will turn into a crisis in 12 months time as demand by the larger airlines intensifies to cope with their unprecedented expansion plans.
Commenting on this shortage, Rex Chief of Staff Jim Davis said "Already some airlines are struggling to find enough pilots to crew their regular schedules and many are resorting to cancelling flights to cope with the situation. The Rex cancellation rate, for example, is now running at four times historical levels. The latest DOTARS statistics, which are for July, show Rex with 0.9% of flights cancelled, Qantas at 1.6%, QantasLink at 1.0%, Virgin at 1.1% and Jetstar at 0.3%.
"However the situation is predicted to get much worse. Based on industry feedback, we estimate that the net additional requirement for pilots will be of the order of 1,800 over the next two years. The supply of new Airline Transport Pilot Licences (ATPLs) every year in Australia is less than 400.
"It is obvious that the major carriers will not allow their brand new jets to sit idle on the tarmac. They will do everything they can to fill up the shortfall by raiding the regional airlines, general aviation, flying schools and specialist organisations like the Royal Flying Doctor Service, something they have already started doing in earnest. Of particular concern will be the loss of experienced flying instructors to the airlines.
"The smaller operators have no defence against such massive recruitment as they are in no position to match the salaries and conditions of the large carriers. Over the last three months, more than 20% of our pilots have been poached by Virgin, Jetstar and Qantas and I am sure the situation is similar or worse in the other regional carriers.
"It is almost too late to avert some of the disastrous consequences in Australia of the looming pilot shortage as it takes at least eight months to train a new pilot. We foresee the possibility that many smaller regional cities of below 30,000 passengers per annum will no longer have an airservice as regional airlines are forced to concentrate on the bigger and more profitable routes. Also we foresee that some regional airlines and General Aviation businesses will be unable to maintain their operations as they struggle to keep up with the massive turnover of pilots.
"While Rex has taken a big hit recently, we currently have our full establishment of pilots. However 15% of them are undergoing various stages of training and will be phased in over the next two months.
"Rex is fortunate in being able to attract a sufficient number of applicants to join our ranks. Furthermore our very healthy financial situation has allowed us to implement a cadet scheme whereby 40 cadets annually will be sheltered from most of the cost of the pilot training in return for a five year commitment. We are also in discussions with several parties to run our own flying school so that we can be assured of a regular supply of pilots of the high standard that Rex requires.
"Rex has done all it could and we call on the Government to respond to this looming crisis by urgently implementing similar bold and decisive measures. The high cost of flying training, estimated at around $80,000 per individual, is the main reason why there are not enough commercial pilots being produced today. If the government can subsidise the education of lawyers, accountants engineers and other professionals, surely it can recognise that the piloting profession is equally worthy of assistance. Today there is not even a fee loan scheme outside of the tertiary institutions that aspiring pilots can tap into to turn their passion to reality" Mr Davis said.
Rex is Australia's largest independent regional airline operating a fleet of 34 Saab 340 aircraft on 1,300 flights weekly to 25 destinations from Sydney, Melbourne, Adelaide and Brisbane. The Rex Group comprises Regional Express, air freight and charter operator Pel - Air Aviation and Dubbo based regional airline, Air Link.
END
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"If you're a young bloke and at the end of that time you've got 3000-3500 hours in a Saab command, you're very eligible to get into Qantas or some place like that," he said.
How ironic, luring prospective cadets with the prospect of moving to the 'majors', then complaining when they do.
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Seems Airline execs have some tough lessons to learn,It is their right to cut pay and conditions as they see fit,but don't be surprised if your average or for that matter above average 16 year old ain't interested in a flying career when he can invent the next computer game and can buy his own airline!
Nunc est bibendum
There is so much crap and spin in this release that it makes me sick.
Poaching is when you trepass onto someone else's property and take something that doesn't belong to you. I'm pretty sure that QF haven't directly approached REX crew to get them to jump ship and so you can take your hyperbole and shove it. You don't 'own' the pilots. They don't 'belong' to you no matter how much you want that to be the reality. Perhaps if you didn't treat them like ****e they wouldn't be thinking about jumping ship.
Drongo. It takes about 12 months to get them to CPL standard and it'll take another few months beyond that to get them online. You're not outof the woods on this one until 2009. Don't bitch and moan because pilots have been telling you now for a couple of years that this was coming. You didn't believe them because you were still focussing on driving down terms and conditions. Reap what you sow.
Which sounds like you're currently down by about 15% of line pilots. Any you lose in the next few months- and you will lose them- mean that you're still going to get caught short.
Sheltered from most of the cost? Hardly. If I read it correctly REX just guarantee the loan. The candidate still has to pay it off. Either way, a five year ROSO for just $40K worth of training (they only do half) is still a crap deal. This won't save your backside.
No you haven't. You've stuffed this one up mightily. Whilst I don't disagree about the funding you're full of BS to state that you've done all you could. What you have done is to bury your head into the sand right up until the day that you started to park aeroplanes. Reap what you sow.
No it's not. It's the crap rates of pay that you and your ilk offer people who need to pay off that $80K that is the reason.
Reap what you sow you morons. You can't say you weren't warned! :twisted:
...our pilots have been poached by Virgin, Jetstar and Qantas ...
"It is almost too late to avert some of the disastrous consequences in Australia of the looming pilot shortage as it takes at least eight months to train a new pilot.
"While Rex has taken a big hit recently, we currently have our full establishment of pilots. However 15% of them are undergoing various stages of training and will be phased in over the next two months.
...implement a cadet scheme whereby 40 cadets annually will be sheltered from most of the cost of the pilot training in return for a five year commitment.
"Rex has done all it could...
The high cost of flying training, estimated at around $80,000 per individual, is the main reason why there are not enough commercial pilots being produced today.
Reap what you sow you morons. You can't say you weren't warned! :twisted:
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I like this part...
"Of particular concern will be the loss of experienced flying instructors to the airlines".
Do you think there could be a substanial pay rise for experienced instructors within the next three years?
"Of particular concern will be the loss of experienced flying instructors to the airlines".
Do you think there could be a substanial pay rise for experienced instructors within the next three years?
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Wake up REX (& every other operator in Australia for that matter)
The horse has bolted. You reap what you sew.
Ask why 16 of 20 guys I learnt to fly with have now permanently left the industry.
Ask why of the 4 of us left only one is left in Oz.
Whats good for the goose is good for the gander. Management bonus'.......LMFAO
If you want a profit generating, proactive and stable crew levels. How about putting in as much as you want out.
Management 101?
CRM (Company Resource Management - is should be)?
Oh thats right, you dont get up at 4.30am to crew the 6am departure. Oh, you dont get home after midnight because the last flight just made the curfew due to delayed arrival of the aircraft.
I am so glad to be out of the Oz, bitching, wingeing, moaning, cut to the bones, outsourced, top heavy managment, bean counting society that Australian Aviation at all levels has become.
You only have one person to blame and that is yourself. No point in wingeing to the government because you cant find'em.
How about raising the crew remuneration so that it actually is more than a local council worker in Sydney.
How about scheduling crews with respectable rest periods (aka lifestyle)
Productivity Bonus' LMAO
Performance Bonus' LMAO
Financial reward for financial control...... WTF are you smoking.
Productivity means that the aircraft actually fly with fare paying passengers.
Started in the year before 1990, continued in the mid 90's. Nailed in 2001, cut to the bones in 2003, Hospice in 2006, RIP 2008.
QF EBA Late
DJ EBA Stalled
Eastern EBA (nobody remembers - they've all left)
NJS - Work Choices..... my rodents rotund rectum!
Last one out - please remember to turn off the lights as part of your reduced carbon footprint.
LMFAO
The horse has bolted. You reap what you sew.
Ask why 16 of 20 guys I learnt to fly with have now permanently left the industry.
Ask why of the 4 of us left only one is left in Oz.
Whats good for the goose is good for the gander. Management bonus'.......LMFAO
If you want a profit generating, proactive and stable crew levels. How about putting in as much as you want out.
Management 101?
CRM (Company Resource Management - is should be)?
Oh thats right, you dont get up at 4.30am to crew the 6am departure. Oh, you dont get home after midnight because the last flight just made the curfew due to delayed arrival of the aircraft.
I am so glad to be out of the Oz, bitching, wingeing, moaning, cut to the bones, outsourced, top heavy managment, bean counting society that Australian Aviation at all levels has become.
You only have one person to blame and that is yourself. No point in wingeing to the government because you cant find'em.
How about raising the crew remuneration so that it actually is more than a local council worker in Sydney.
How about scheduling crews with respectable rest periods (aka lifestyle)
Productivity Bonus' LMAO
Performance Bonus' LMAO
Financial reward for financial control...... WTF are you smoking.
Productivity means that the aircraft actually fly with fare paying passengers.
Started in the year before 1990, continued in the mid 90's. Nailed in 2001, cut to the bones in 2003, Hospice in 2006, RIP 2008.
QF EBA Late
DJ EBA Stalled
Eastern EBA (nobody remembers - they've all left)
NJS - Work Choices..... my rodents rotund rectum!
Last one out - please remember to turn off the lights as part of your reduced carbon footprint.
LMFAO
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Keg you are spot on. I think we will see retetion bonusus soon. I really think some of these airlines like Rex and Qlink will realise the train new pilots option is too late. They have to stem the blood loss somehow. Cadet schemes aint a good bandage. Retaining your current staff is.
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I think it might be time to enlighten Mark Vaile as to the real issue and compare what Rex and other regionals pay their pilots to that of other professions. Sh$tty pay is the main reason for the pilot shortage. It is so obvious it’s frightening. Can anyone suggest an effective means to get his attention on the real issue? It is time to act!
This sort of misinformation from Rex and the like needs to be publicly challenged and corrected. If they don’t want to remunerate properly than that’s their death sentence, but to publicly spout this sh$t is crossing the line.
Watch this space!!!
This sort of misinformation from Rex and the like needs to be publicly challenged and corrected. If they don’t want to remunerate properly than that’s their death sentence, but to publicly spout this sh$t is crossing the line.
Watch this space!!!
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QANTASLINK can solve their attrition rate overnight by allowing career progression into mainline, lets say minimum time in QLink 5 years.
Allowing 40 - 50 pilots a year to progress through, controlling the attrition rate at 40 -50 rather than the 100 + a year. In that time new crew will have a command within lets say three years, then move onto mainline themselves.
At this stage it is easier for QLink drivers to gain career progression into Virgin than it is into their own Q group airlines.
If they don't do something very soon it will be way to late, and like Rex the cancellation of flights will follow.
Allowing 40 - 50 pilots a year to progress through, controlling the attrition rate at 40 -50 rather than the 100 + a year. In that time new crew will have a command within lets say three years, then move onto mainline themselves.
At this stage it is easier for QLink drivers to gain career progression into Virgin than it is into their own Q group airlines.
If they don't do something very soon it will be way to late, and like Rex the cancellation of flights will follow.
Seasonally Adjusted
Well said Keg.
There's only one thing I would add...
If your financial situation is so 'healthy' why can't you pay your pilots what they're worth?!
There's only one thing I would add...
Furthermore our very healthy financial situation has allowed us to implement a cadet scheme
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Shortage?
Are there any pilots who have applied to airlines and not got in, or had a reply? Is there a real shortage, or is this just a scheme to get government to foot the bill for basic training, type endorsement etc?
How many CPL's can our flying schools and MPL schools turn out per year for our own airlines?
Airlines will never pay decent wages if they can persuade enough people to train at their own, or government expense so they can have a large pool of wannabies parked in GA until they need them.
They have almost destroyed GA by doing that, and it is now affecting the regionals.
Flying schools and our airlines have killed the goose that laid the golden egg.
How many CPL's can our flying schools and MPL schools turn out per year for our own airlines?
Airlines will never pay decent wages if they can persuade enough people to train at their own, or government expense so they can have a large pool of wannabies parked in GA until they need them.
They have almost destroyed GA by doing that, and it is now affecting the regionals.
Flying schools and our airlines have killed the goose that laid the golden egg.
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I'm getting out of this business.
When industry chooses long term options like subsidising training over looking after existing staff then f*^ck em.
Its gonna be low cost for ever more.
Grab what you can while you can folks, I don't think $30 airfares are gonna keep us all employed.
So long
Chad Sexington
When industry chooses long term options like subsidising training over looking after existing staff then f*^ck em.
Its gonna be low cost for ever more.
Grab what you can while you can folks, I don't think $30 airfares are gonna keep us all employed.
So long
Chad Sexington
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How many CPL's can our flying schools and MPL schools turn out per year for our own airlines?
Seems to have become an accepted factor in the game.
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Both Bushy and Chad have very valid points.
I know quite a few Aussie B737 rated guys here in Europe (self included) who have never even heard a peep from VB. Shortage……maybe, maybe not can anyone at the coal face actually say they have parked aircraft against the fence for the need of additional crew???
A young fella I know was given the ultimatum by the new wife, flying or her, he chose her. After being punted from pillar to post by operators who need the requisite 3 shuttle landings, 10 renewals, rated and current on every type in the fleet blah blah blah that we have seen in days gone past . Why would you want to.
Chad….. sunrise in the cockpit as you pop through the low stratus just past o-dark-thirty is very hard to beat as a career choice.
I know quite a few Aussie B737 rated guys here in Europe (self included) who have never even heard a peep from VB. Shortage……maybe, maybe not can anyone at the coal face actually say they have parked aircraft against the fence for the need of additional crew???
A young fella I know was given the ultimatum by the new wife, flying or her, he chose her. After being punted from pillar to post by operators who need the requisite 3 shuttle landings, 10 renewals, rated and current on every type in the fleet blah blah blah that we have seen in days gone past . Why would you want to.
Chad….. sunrise in the cockpit as you pop through the low stratus just past o-dark-thirty is very hard to beat as a career choice.
Im a Captain ,applied for tiger virgin and jetstar, heard nothing and im willing to go right seat. im considering giving up flying and getting into the mining industry just to live at home. What shortage......................
Last edited by Ramboflyer 1; 9th Oct 2007 at 15:31. Reason: more
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Mate, i couldnt agree with you more....
Ive got a couple mates here in Europe, aussies, who have over 6000hrs and TR and still nothing from VB or QF!!!
So much for a shortage!
Ive got a couple mates here in Europe, aussies, who have over 6000hrs and TR and still nothing from VB or QF!!!
So much for a shortage!