Airlines rush to add regional jets; who will fly them?

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Minnesota_Flyer

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http://www.startribune.com/535/story/1328757.html

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Vance Hopkins used to fly jets out of the Twin Cities for Pinnacle Airlines. He walked away from that job earlier this year to become a truck driver.

"I wasn't getting enough time at home," said the 45-year-old Hopkins man, who typically spent just eight or nine days a month with his wife and three children when he was a pilot.

"They were the ones that were making the big sacrifices," Hopkins said, adding that he now returns home every night after working as a short-haul truck driver in Northern California.

The job of a commercial airline pilot, once considered exciting and lucrative, has undergone a negative makeover complete with lesser pay, longer hours and plenty of time spent on the road. The industry changes are especially severe for pilots who work for regional airlines, where the pay for first officers sometimes doesn't top that of a fast-food shift manager.

Many airline industry insiders say the United States is now struggling with a pilot shortage because airlines have created a harsher lifestyle for pilots. Some pilots are leaving the profession to pursue other careers, and some students intrigued by aviation are choosing other occupations and bypassing pilot training.

The Federal Aviation Administration has projected that the number of passengers on U.S. commercial airlines will increase from 698 million in 2000 to 878 million in 2011 -- a 26 percent jump.

Meanwhile, the number of pilots holding airline transport certificates -- the license needed at major airlines -- is expected to remain virtually flat. In 2000, 141,598 people held that license, and the FAA expects a slight climb to 142,489 in 2011. The number of pilots with commercial licenses -- required at regional airlines -- is expected to decline by about 7,000.

For travelers, pilot shortages mean more flight cancellations. Pinnacle Airlines, for example, which operates regional flights for Northwest Airlines, disclosed in May that it expects to pay a $1.1 million penalty to Northwest because it didn't have enough pilots to fly the full schedule earlier this year.

The shortage also means there's a good chance that a newly hired co-pilot on your regional flight has less flying experience than newly hired pilots of just a year or two ago.

"You can teach somebody to fly relatively quickly. You cannot teach judgment quickly," said Tom Wychor, chairman of the Mesaba Airlines pilots union. "Judgment takes time and experience to learn."

Brian Addis, who operated the Wings flight school in St. Paul for three decades, said a pilot's career is "not the way it used to be." People training to become commercial pilots now need to know that they "will be gone more and work harder for less money."

Many have already gotten that message and decided a pilot's license isn't worth the time and expense.

For many years, Addis said his school typically had an enrollment of 150. But he closed shop in March after the number dropped to 10.

John Prater, president of the Air Line Pilots Association (ALPA) International, said the pilot shortage has its roots in 9/11, because major airlines slashed thousands of pilot jobs following the drop in passenger demand that resulted from the terrorist attacks. Many of the remaining pilots saw their pay reduced as the airlines struggled financially. Several carriers entered bankruptcy. Some airlines, including United, terminated pension plans.

Now, there aren't enough new pilots "entering into the pipeline because the [labor] contracts were broken in bankruptcy court," said Mesaba's Wychor. He argued that bankruptcy judges gave airline executives "carte blanche" to extract excessive concessions. In the Northwest bankruptcy case, pilots took a 23.9 percent pay cut in 2006, which was on top of a 15 percent cut in late 2004.

Gearing up to hire

After hiring 4,779 pilots in 2000, the nation's major carriers hired just 549 in 2002.

The tables since have turned and big network carriers and regional airlines are seeking to hire thousands of pilots. Both Northwest and United airlines have recalled the last of their furloughed pilots and are hiring pilots for the first time since 2001.

Northwest said last week that it intends to hire about 300 pilots over the next 12 months; on the first day it accepted applications on its website, it received 250.

But Northwest is drawing pilots from the regionals at the same time that it is hoping to rely on the regionals more than ever to handle big parts of its flight schedule. Northwest is expanding regional flying by an annual average of 16.9 percent between now and 2010.

Northwest has allocated three dozen new 76-seat Canadair Regional Jets (CRJs) to Mesaba as well as 16 smaller CRJs that seat 50 passengers. That increased flying means that Mesaba expects to hire 695 pilots. The airline said Thursday that it has hired 285 pilots so far, and has received 1,400 applications.

Compass, a new subsidiary created while Northwest was in bankruptcy, intends to hire 350 pilots to fly 36 new Embraer jets that seat 76 passengers. Compass has hired 80 pilots and started to take delivery of the new planes.

Pinnacle, Northwest's third regional partner, employs about 1,250 pilots and has seen 168 resign this year. Phil Reed, Pinnacle's vice president of marketing, said that Pinnacle has made 254 new hires this year and kept a "large pool of well-trained, experienced pilots."

But Scott Erickson, chairman of the Pinnacle pilots union, said many first officers at Pinnacle have made lateral moves and taken jobs at other regional airlines. A beginning first officer at Pinnacle earns between $24,000 and $25,000 total for flying more than 900 hours a year. (The FAA maximum for flying is 1,000 hours a year.)

Pinnacle pilots, represented by ALPA, have been in negotiations since July 2004.

"The terms and pay rates of our 1999 contract have languished behind the industry," Erickson said. "Naturally, substandard pay, benefits and work rules have been a major impediment to pilot recruiting and pilot retention in such a tight hiring market."

Minimums being minimized

Kit Darby, who recently retired from flying for United, has run a business for several years that helps pilots get jobs.

Through his company, Atlanta-based Air Inc., he distributes detailed information to pilots about hiring opportunities and job qualifications.

Many regional carriers used to require that new hires have 1,000 hours of total flight time, but Darby said those "minimums" have been dropping rapidly.

"When [airlines] are changing their minimums to get more people, then there is at least a shortage of what they previously were looking for," Darby said.

Mesaba lists 600 total hours of flying as "minimum preferred hours" for new hire pilots, but Darby said a Mesaba representative told him that exceptions would be made to that floor based on the chief pilot's approval.

Pinnacle cites 1,000 hours of flying time as a "preferred minimum," but since June Pinnacle management has been offering to pay employees a $1,000 "referral bonus" for each pilot they find who has 600 to 1,000 hours of experience.

Kent Lovelace, chairman of the Aviation Department at the University of North Dakota, said he believes the United States is experiencing a pilot shortage. He said that at one time pilots needed 1,500 total flying hours to get hired at regional carriers. Now, regional carriers are traveling to Grand Forks to hire UND graduates who normally would spend a few years building up their flight time as instructors.

"We've had three airlines here in the last week hiring," Lovelace said, including Mesaba.

Darby said some regionals are hiring people with only 250 hours of flight time, even though many regionals required 1,000 hours a year ago.

Mesaba said Thursday that its 600 "minimum preferred hours" of flight time is "consistent with regional carrier standards." Mesaba cited eight others, ranging from 250 hours at Trans State Airlines to 1,000 hours at Republic. Mesaba said that some pilots it hired in the past few months had more than 1,300 hours.

Log jam at the bottom

Mesaba's Wychor said it used to take about a decade for pilots to get on sound financial footing. They would earn very little pay as a first officer at a regional carrier, get promoted to a higher-paying regional captain, and then take another dip in pay after getting hired as a first officer for a big airline, such as Northwest.

After reaching the rank of captain at a major airline, their pay could soar compared to beginning pilots. As their seniority levels allowed them to fly larger aircraft, their pay would climb. For example, before a veteran 747-400 captain took two pay cuts at Northwest, that pilot was making up to $281,000. Now, that same pilot makes about $182,000 a year.

In recent years, movement to major carriers was stymied because the big airlines reduced their workforces and regional pilots had to stay put.

Sean Forster got tired of waiting for the logjam to break. "I sat in the top 10 of the Minneapolis [base] first officer seniority list for close to three years, because nobody was moving," Forster said.

Now 38, Forster left Mesaba in mid-2004 because he didn't think he would have enough good flying years to earn a decent retirement. He became a regional sales manager for a company that sells sporting goods.

"The most money I made at Mesaba any year as a first officer was $35,000," the Minneapolis resident said. "I remember my wife and I went in to see an accountant and he laughed at us."

Prater, a Continental pilot who was elected ALPA president last year, is focused on negotiating financial and work-rule improvements for pilot groups across the United States. "It must be an attractive profession," he said, or there will be a long-term pilot shortage.

Prater said it's not a viable strategy to simply make the current supply of pilots work harder. "Pushing the pilots who are there to fly even more hours per day or more hours per month has directly led to a chronic fatigue situation," he said, forcing flight cancellations.

Some airlines may be beginning to take notice.

At UND, Lovelace said one airline inquired about sponsoring scholarships for pilots.

"I wanted to get off the floor," Lovelace said. "That's the first time any airline has talked about helping to support new, potential employees. His reply was, 'It's cheaper to do that than cancel flights.' "
 
Interesting read.

In my new hire class, most have 1000-3000 hours from being a CFI or freight pilot.

Maybe they'll figure out that without us, they have no business.
 
The pilot shortage has really hit the flight school ranks.

Our school needs a flight instructor bad but nobody wants to go to a place with no multi engine airplane.

Anyone want a CFI job in Maine?
 
All of you will fly those RJs for whatever management decides to pay you, and you will do it willingly.
 
All of you will fly those RJs for whatever management decides to pay you, and you will do it willingly.

That's exactly the problem. And there's a bunch of RJ F/Os willing to fly a Skybus A320 for $65 an hour. There's a bunch of Skybus F/Os willing to fly a Virgin Airbus for $95 an hour. And there's a bunch of furloughed USAir/UAL pilots willing to fly a jetBlue Airbus for $120 an hour.

Wonder why the profession is in a tailspin? Because people are too damn lazy to say no to crap wages and go get a real job. The guy I respect most in that story is the guy who chucked it and went to drive a truck to be with his family.

Until pilots refuse to take these crap jobs for no pay and no benefits, the profession will continue to decline.
 
You fly for a commuter, therefore, you are part of the problem.

When United ALPA agreed to a 30%+ pay raise in contract 2000/2001 do you feel that raised the bar? I don't, because in order to obtain that pay raise they agreed to a reduced scope clause that increased managements ability to farm out feed by 600%! They thru us under the bus. And it wasn't just UAL that agreed to relaxed scope, it was all of 'em (hence the growth in regional flying, the flying that the guys at the majors didn't want to do 10 years ago).

Perhaps you could compare and contrast the UPS pay scales vs. legacy pay scales in previous years, say over the past two decades...what would you see? I'd be curious to see those numbers. My hunch says UPS pilots were paid significantly less than the market rate for pax carriers on the same equipment.

Stop pointing fingers. We're all pilots, we all want to make a lot of money, and we all want to fly.
 
When United ALPA agreed to a 30%+ pay raise in contract 2000/2001 do you feel that raised the bar? I don't, because in order to obtain that pay raise they agreed to a reduced scope clause that increased managements ability to farm out feed by 600%! They thru us under the bus. And it wasn't just UAL that agreed to relaxed scope, it was all of 'em (hence the growth in regional flying, the flying that the guys at the majors didn't want to do 10 years ago).

Perhaps you could compare and contrast the UPS pay scales vs. legacy pay scales in previous years, say over the past two decades...what would you see? I'd be curious to see those numbers. My hunch says UPS pilots were paid significantly less than the market rate for pax carriers on the same equipment.

Stop pointing fingers. We're all pilots, we all want to make a lot of money, and we all want to fly.


The problem is most of you want to fly more than you want to make money. Management knows that.
 
I can't believe it. I agreed with every word you said!

Let me throw this in.
Typically in corporate America, when they have a hard time filling a necessary position, they send out head hunters to try and attract competitors employees and promise them better salary, a company car, housing allowance and as many perks as it takes to get them to accept. The same with pro sports. So....why do the airlines not try to raise the ante in order to attract talent? Why aren't they trying to lure the 10,000 hour corporate pilots floating around in FBOs around the country, or from UPS and FedEx? Why aren't they trying to outbid other airlines at job fairs? Why do they insist on lowering the bar?

Lets see, they couldn't get enough pilots so they dropped the 4 year degree requirement. That didn't work so they dropped the ATP written. That didn't work so they dropped the mins to 3000tt, then 2500tt then 2000, then 1500, then the college requirement all together. Then it was HS grad or equivalent. Now they still can't get enough.

Every business on the planet raises pay when applicants are low.....except airlines. Pilots ARE out there and more will join the pipeline if/when they are paid accordingly.
 
The problem is most of you want to fly more than you want to make money. Management knows that.

I don't agree. I think 9/11 had a huge impact on the pay more than you are letting on. RJ's were/are fairly new to the game, scope clauses were released I believe first with Comair back in the mid to late 90's. Air Wisconsin Inc. was actually the first "feeder" company to obtain a fee-for-departure contract with a major, that was late 80's, but they didn't announce the RJ until 1998, which was at that time the largest CRJ order at that time I believe.

Anyway, Comair's pay was horrendous, something like $952 after tax every month for an FO. They went on strike for 89 days to get a better contract, and it was steller (sp?), especially when you look at where they came from. Several months later, AWAC also signed their "2001" contract, which bested Comair's. AWAC's contract was signed 9/11/2001. Comair and AWAC have since taken pay cuts of about 20% and 15% respectively.

The pay you are seeing now is a result of the (lack of) bargaining power that was available post 9/11. Just like the majors took pay cuts, and had no leverage, regional pilots had no leverage. But the pattern bargaining system was working. This article demonstrates that there is leverage again, hopefully the airlines currently in negotiations take advantage of that (Pinnacle, ASA). You guys should take note - your time is here. Don't accept less than market rate +XX%, you MUST get a good contract for the sake of all of us.

Also, I'm still waiting for those UPS pay rates.
 
The problem is you guys are trying to turn a job that was never meant to be a career into a career.
 
The only thing we can do is wait and see what's going to happen with the upcoming contract neogiations. I have said this before and I'll say this again, expect a SIGNIFICANT pay increase for pilots industry wide.

2ndly, they used a 45 YEAR OLD FO from a company not know for the best work rules. Hardly paints a true representation of the industry. Would this guy had left pinnacle if he was 25? Doubt it. Would this guy had left the industry if he was instead at SKW, XJET, or republic? Doubt it.
 
You fly for a commuter, therefore, you are part of the problem.

And how, exactly, would you rectify the problem?

Before I was hired at PCL, I was a CFI working my butt off two states away from my family with no health benefits. Now, I'm living in the same place as my wife and kid, I see them more than half the month, I have health insurance (thankfully since my son has used it a ton this year) and I get paid more now than I did as a CFI.

Are you suggesting that I should have stayed a CFI instead of coming to fly for a commuter and bettering my personal life?

Sure, I could have gotten out altogether, moved back to Orlando and gone back to work at the theme parks. That wouldn't really have helped since I'd be making less money there than I am now. I could have gotten another degree and gone to work doing something else, but then there's the "how the heck do I pay for this extra training."
 
The statistics in the article are interesting. . .

1. Passenger numbers increasing by 26% between 2000 and 2011
2. 142'000 ATPs in circulation in 2000, and in 2011 the number is expected to be. . . 142'000
3. Commercial licences: decline by 7'000 by 2011
4. Pinnacle paying a 1.1 mio penalty for not having enough pilots to fly the schedule
5. Airlines recruiting in non-traditional locations

This is all good news for the future of wages for pilots.

I love those statistics. Anyone know where to see real hard numbers on how many commercial and ATP certificates the FAA issues?

A good analysis of those numbers would be far more meaningful than all of the appeals to not work for less than market rate + xx%.
 
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