American To pay 15,000 signing bonus to new hires

Zapphod Beblebrox

Inventor of the Pan Galactic Gargle Blaster
American Airlines’ regionals offer $15,000 signing bonus to new pilots
Jun 13, 2016

ATW Photo Gallery-In the News-June 2016

American Airlines’ three wholly owned regional affiliates—Envoy Air, Piedmont Airlines and PSA Airlines—simultaneously announced they will pay a $15,000 bonus to all newly hired pilots, effective immediately.

The move comes amid the backdrop of US regional airlines having increasing difficulty hiring new pilots. Citing FAA’s requirement that pilots accumulate 1,500 flight hours before becoming a commercial airline pilot and other factors, Regional Airline Association (RAA) president Faye Malarkey Black said US regionals sought to hire 5,000 new pilots in 2015, but actually were able hire fewer than 3,000 because of a “considerable decline in the quality of eligible pilot candidates.”

The Air Line Pilots Association (ALPA) union has called on US regionals to offer higher starting salaries as a way to alleviate the pilot hiring problem.

American’s regionals are touting the signing bonus, plus a career path to mainline American cockpits, as a drawing card for flight deck crew.

“We’re hoping that the $15,000 signing bonus will encourage more pilots to look at Piedmont as a career choice,” Lyle Hogg, the CEO of Salisbury, Maryland-based Piedmont, said in a statement. “Piedmont offers a very quick upgrade from first officer to captain and a guaranteed job at American Airlines in a few years, so it’s a great career option.”

Irving, Texas-based Envoy said in a statement that “with our flow-through program to the mainline, [newly hired pilots] can enter training at American Airlines in less than six years from hire.”

In addition to the hiring bonus, Piedmont and Dayton, Ohio-based PSA also announced a $5,000 bonus for referring a pilot who is ultimately hired. “It’s a great opportunity for all of our employees to participate in our recruiting efforts,” Hogg said. “Any employee can recommend a friend or family member pilot through our human resources department and get rewarded with a bonus for doing so.”

Piedmont is seeking to hire more than 200 pilots in 2016.


The good news: They are paying 15,000 dollars. The bad news, or possible bad news, the flow is not contractual. There is no contractual enforceable agreement. Each wholy owned has an agreement between its pilot group and its independently managed certificate holder management team. If for some unforeseen reason the hiring binge were to stop, the flows stop or can even go away. There is no enforceable contract language between the regional pilot and the mainline.

Parker will uphold the agreement, as long as it is in his best interest to do so. There was no negotiation over this bonus, the company just decided to do it.

I commute from PIT to DCA. We are down from 5 flights a day to three because Republic cannot staff. I am driving more that I thought I would have to. We are starting to feel it.
 
Might work with the opening of a west coast base and &10.+ more an hour first year pay. That might get people through the door.


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Isn't upgrade 6 - 8 years over at Envoy? Methinks they will need much more than a $15000 sign-on bonus to attract people over there.

Yes, I believe the last award junior captain was 2008 hire and for the new hires you get a whole 2 choices of a base.
 
At current rates, upgrade at PSA is 5.8 years away for me, with just under 300 FOs ahead of me, and there are 300+ behind me on the list. That puts upgrade past 12 years for a new FO. They are going to need to offer much more than these bonuses if they want to recruit and/or retain. Otherwise, an exodus will happen.
 
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I commute from PIT to DCA. We are down from 5 flights a day to three because Republic cannot staff. I am driving more that I thought I would have to. We are starting to feel it.

Not to derail, but I doubt a former hub to hub route is down to three flights a day simply because Republic cannot staff it. That'd be like saying the ATL-MEM is down to three flights a day because XJT can't staff it.
 
If $10,000 bonuses weren't working, why would an extra $5,000 magically solve the problem? Doesn't even seem like something they really thought about much...
 
Not to derail, but I doubt a former hub to hub route is down to three flights a day simply because Republic cannot staff it. That'd be like saying the ATL-MEM is down to three flights a day because XJT can't staff it.

All I am telling you folks is what they are telling me. Republic has a base in PIT and the pilots I have spoken with say it is a day to day operation there. They are always wondering if they will have enough people to cover the schedule. It's just what I have been told and heard.
 
They're not trying to attract people to the occupation, they're just going after the low hanging fruit right now (ie poaching). Lots of freight and corp jobs out there don't really pay all that great but better than year one and for whatever reason a lot of people don't want to take a pay cut (even if they will make far more in the long run and have a much higher QOL). I'm sure every time they implement these bonuses they see a spike in applications. Management has the full picture, we don't really have a clue.

It takes what, 2-3 years to go from zero hours to RJ pilot in a best case scenario? AA is pretty involved at the collegiate level signing guys up for the WO's. I would think the next step will be instead of bonuses on the employment side, they'll start contributing toward flight training knocking the price of it down to a reasonable level in exchange for a note and employment bonding.

Some interesting math and fun numbers. Endeavors $20k bonus. I flew about 740 hours every year at my regional. Almost like clockwork. Flying an avg 60 pax (split between 50 and 70 seaters) at 80% LF yields 48 pax. Avg block on most regionals is what around 1:45 maybe? So call it 420 flights. 500 x 48 = 20,100 pax flown. $1.01 per pax flown, x2 (two pilots) or $2.02 per flight to ensure you have reliable feed.

I am the cheapest person I have ever known on the face of the planet but it never ceases to amaze me just how CHEAP, no, not FRUGAL but CHEAP, airlines are.
 
At current rates, upgrade at PSA is 5.8 years away for me, with just under 300 FOs ahead of me, and there are 300+ behind me on the list. That puts upgrade past 12 years for a new FO. They are going to need to offer much more than these bonuses if they want to recruit and/or retain. Otherwise, an exodus will happen.

Can you explain how that is? According to APC the most junior captain is a 2015 and upgrades are about a year?
 
I am the cheapest person I have ever known on the face of the planet but it never ceases to amaze me just how CHEAP, no, not FRUGAL but CHEAP, airlines are.

I know we disagreed about some stuff earlier this week, but you are on the money with this one.
 
They're not trying to attract people to the occupation, they're just going after the low hanging fruit right now (ie poaching). Lots of freight and corp jobs out there don't really pay all that great but better than year one and for whatever reason a lot of people don't want to take a pay cut (even if they will make far more in the long run and have a much higher QOL). I'm sure every time they implement these bonuses they see a spike in applications. Management has the full picture, we don't really have a clue.

It takes what, 2-3 years to go from zero hours to RJ pilot in a best case scenario? AA is pretty involved at the collegiate level signing guys up for the WO's. I would think the next step will be instead of bonuses on the employment side, they'll start contributing toward flight training knocking the price of it down to a reasonable level in exchange for a note and employment bonding.

Some interesting math and fun numbers. Endeavors $20k bonus. I flew about 740 hours every year at my regional. Almost like clockwork. Flying an avg 60 pax (split between 50 and 70 seaters) at 80% LF yields 48 pax. Avg block on most regionals is what around 1:45 maybe? So call it 420 flights. 500 x 48 = 20,100 pax flown. $1.01 per pax flown, x2 (two pilots) or $2.02 per flight to ensure you have reliable feed.

I am the cheapest person I have ever known on the face of the planet but it never ceases to amaze me just how CHEAP, no, not FRUGAL but CHEAP, airlines are.

The longer I've been flying 121 the more and more baffled I become at the business. It's just all insane.
 
I would think the next step will be instead of bonuses on the employment side, they'll start contributing toward flight training knocking the price of it down to a reasonable level in exchange for a note and employment bonding.

They are already doing this. Envoy has partnered with ATP and currently will reimburse up to 11k of flight training with a signature on the dotted line.
 
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