Pilot Shortage (2015 Embry Riddle summit)
#471
Gets Weekends Off
Joined: May 2014
Posts: 265
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From: Captain - Retired
I'll argue it. Boeing and ALPA claim the majors need to hire an average of 4,200 pilots/year for over a decade. The regionals have 16,000 pilots left, of which the majors consider around 6,000-7,000 desirable pilots. I'm sure the majors can and will adjust those standards down quite a bit, but there are still a lot of regional pilots who will not want to make the jump ever, especially if the regionals start sweetening the pot to stay. That is not enough pilots for the majors. The military is not going to supply significant numbers, and civilian flight academies have few American students.
Despite claims by ALPA, I've not seen any evidence that there are significant numbers (like even a few thousand) of expats able to come back, or qualified pilots working in other industries and willing to come back.
If there were, this would be the time to come back. From a pilot perspective, when mass hiring is obviously going to happen, you get your seniority number whatever it takes. Industry experts don't understand that.
Not everybody buys into the seniority system nonsense.
Just because they aren't willing to start their career all over at $20K per year doesn't mean they don't exist.
The majors want a pilot shortage, they need a pilot shortage, and they are getting a pilot shortage. They will make huge money when the regional and low-cost airlines stop suppressing prices, and demand greatly exceeds supply.
The majors created the regionals as a B scale for their own routes. The majors even supply most of the large jets to the regionals. The majors hire primarily regional pilots to encourage this B scale flow system to the majors and expect most pilots to spend about ten years average at the regionals before "moving up" from left seat to the right seat. Without the regionals the majors will be forced to fly those routes again like they used to.
The majors will have far less trouble luring pilots that the regionals because despite the low first year pay it usually goes up significantly the second year and I expect to even see that first year go up in the next few years across the board.
If the pilot shortage can be spun into a "crisis", the airline industry is guaranteed to get lots of favorable legislation to permanently lower pilot labor costs.
Programs like DARPA's ALIAS program will get a massive boost to eliminate aircrew labor, although it seems to already have a lot of steam propelling it.
#472
You are proceeding from the assumption that the majors will only hire pilots from regional airlines and the military. It has been established over and over that there are tens of thousands of other pilots outside these pools that are qualified to work as airline pilots but don't choose to. Even the majors start your first year pay pretty low and many experienced pilots working in other careers or other areas of aviation aren't able to absorb such a pay cut so they don't consider the career. You are buying into the false publicity that has been pushed at great expense by the airlines in order to pressure Congress to roll back the regulations.
You personally? Have you done an intense statistical analysis of the numbers and published a study? Just because you haven't witnessed something personally doesn't mean it doesn't exist. There are experts who have researched this. There are facts and numbers. If you assume the only people telling the truth are the Regional Airlines then....well I don't know what to say about that. I mean...I don't normally put great faith in ALPA anymore but I'd take them over the RAA. It's just that these days talking to ALPA you may as well be talking to the CEO of a major airline. Congress published an in depth study (as we all know) which you can read for free anytime. Maybe you don't put much faith in what Congress said either but in this case they are standing up to a powerful lobby along side Sully and other victims of the Buffalo crash. I personally wish Congress would stand up against narrow corporate interests in favor of the people more often.
Again, you are assuming that all pilots believe what you believe. Why would an experienced pilot who has a job somewhere else making good money go work for an airline at $20K per year just to get in on that seniority bandwagon? Especially if they are an experienced and high time captain in their forties or later?
Not everybody buys into the seniority system nonsense.
Just because they aren't willing to start their career all over at $20K per year doesn't mean they don't exist.
This is complete nonsense. Do you really think the majors are in competition with the regionals? With so few majors left they aren't even in competition with each other anymore in most markets.
The majors created the regionals as a B scale for their own routes. The majors even supply most of the large jets to the regionals. The majors hire primarily regional pilots to encourage this B scale flow system to the majors and expect most pilots to spend about ten years average at the regionals before "moving up" from left seat to the right seat. Without the regionals the majors will be forced to fly those routes again like they used to.
The majors will have far less trouble luring pilots that the regionals because despite the low first year pay it usually goes up significantly the second year and I expect to even see that first year go up in the next few years across the board.
This is of course their plan which is why pilots need to educate the public and each other on the truth and resist the urge to fall for the lies and publicity spin the airlines are pushing. This is a massive and costly PR and lobbying campaign pushed by the airlines which includes a nationwide press campaign (all those stupid articles about the pilot shortage appearing all over the country), propaganda being pushed on pilots by the airlines, the unions, fellow pilots (unfortunately). They even come into these and other aviation forums and message boards to try to disrupt these conversations.
Probably eventually inevitable but I don't see it as an immediate threat to the profession.
You personally? Have you done an intense statistical analysis of the numbers and published a study? Just because you haven't witnessed something personally doesn't mean it doesn't exist. There are experts who have researched this. There are facts and numbers. If you assume the only people telling the truth are the Regional Airlines then....well I don't know what to say about that. I mean...I don't normally put great faith in ALPA anymore but I'd take them over the RAA. It's just that these days talking to ALPA you may as well be talking to the CEO of a major airline. Congress published an in depth study (as we all know) which you can read for free anytime. Maybe you don't put much faith in what Congress said either but in this case they are standing up to a powerful lobby along side Sully and other victims of the Buffalo crash. I personally wish Congress would stand up against narrow corporate interests in favor of the people more often.
Again, you are assuming that all pilots believe what you believe. Why would an experienced pilot who has a job somewhere else making good money go work for an airline at $20K per year just to get in on that seniority bandwagon? Especially if they are an experienced and high time captain in their forties or later?
Not everybody buys into the seniority system nonsense.
Just because they aren't willing to start their career all over at $20K per year doesn't mean they don't exist.
This is complete nonsense. Do you really think the majors are in competition with the regionals? With so few majors left they aren't even in competition with each other anymore in most markets.
The majors created the regionals as a B scale for their own routes. The majors even supply most of the large jets to the regionals. The majors hire primarily regional pilots to encourage this B scale flow system to the majors and expect most pilots to spend about ten years average at the regionals before "moving up" from left seat to the right seat. Without the regionals the majors will be forced to fly those routes again like they used to.
The majors will have far less trouble luring pilots that the regionals because despite the low first year pay it usually goes up significantly the second year and I expect to even see that first year go up in the next few years across the board.
This is of course their plan which is why pilots need to educate the public and each other on the truth and resist the urge to fall for the lies and publicity spin the airlines are pushing. This is a massive and costly PR and lobbying campaign pushed by the airlines which includes a nationwide press campaign (all those stupid articles about the pilot shortage appearing all over the country), propaganda being pushed on pilots by the airlines, the unions, fellow pilots (unfortunately). They even come into these and other aviation forums and message boards to try to disrupt these conversations.
Probably eventually inevitable but I don't see it as an immediate threat to the profession.
I don't see in GAO-14-232 where there are tens of thousands of American pilots overseas, waiting to come back to fly in the U.S.. I do see where it mentions around 8,000 pilots with FAA ATP certificates, and around 16,000 pilots with FAA commercial tickets, have a residence overseas. Did you know that Embry-Riddle and Flight Safety International train far more foreign pilots than American pilots? And those foreign pilots get FAA certificates? Those foreign pilots go fly for the foreign airlines that sponsored them, and have addresses overseas. They aren't waiting for pilot jobs in the U.S., so that premise is false. There may be American pilots overseas who would come back, I've talked to some, but I've seen nothing to indicate many thousands of them.
Several sources in this report look at how many students are moving through U.S. flight schools, without regard to how many are actually U.S. citizens. Some of the large flight academies in the U.S. have been sold to foreign airlines, who operate them solely to train their own pilots. Their students have U.S. addresses, so they are U.S. residents, and they get FAA certificates, but they are not going to end up in U.S. airline cockpits. Most of the FAA certificates being given out today are going to foreign students, not Americans.
One of the big sources cited in this study is Audries Aircraft Analysis. When that study came out I contacted the author with questions about citizenship, on the supply end, and about non-airline demand for pilots, which is actually huge and ignored by every study out there. This is a very tough subject to get real numbers for, and Brant did a better job than most, but still left out some huge numbers.
Nobody has any data on Americans with ATPs waiting to return to the profession. It is possible, but seems unlikely, and there are no numbers.
For the past 15+ years, the major airlines and the financial press have been clearly stating that the low-cost carriers are responsible for keeping ticket prices low. If that isn't clear to you, or you somehow missed it all, I can't come up with anything more convincing. Even today there are new airlines trying to start up and undercut the others. There seems to be no limit to people rushing in to lose money in an attempt to start a cheaper airline, while existing LCCs state they can't find pilots. A shortage of some critical resource, that won't significantly go up in price at the majors, and is available to the majors when it isn't available to the LCCs, is a miracle. Or excellent strategy and planning.
DARPA. ALIAS. Read about it. I've worked in industrial automation for 30 years, and I'm stunned at the automation that is coming out of research labs and into production. The technology exists, DARPA is just looking at how to integrate it into EXISTING cockpits and culture. They aren't talking ten years from now. It will happen slowly, and I think I'll be safe as a captain at a major. But a large drop in demand for pilots will effect every pilot in the industry, and most of us will still be here. Pilots who are new today, will be in trouble. This industry loves to shed pilots.
#473
Gets Weekends Off
Joined: May 2014
Posts: 265
Likes: 0
From: Captain - Retired
First off I'm impressed with your dedication and research but unless you're just playing devil's advocate I'm going to assume you have a personal tie to this agenda. Are you management?
The flight schools in the US that train foreign pilots issue those pilots an FAA commercial certificate. They then return to their home country where they obtain a local certificate on the basis of their FAA certificate. Those foreign pilots do not obtain an ATP. This is why the distinction of those pilots who have an ATP living overseas is important. The majority of those pilots with ATPs that are living overseas are either working for a foreign airline as an American Expat or are working in a different career but are qualified to work as a pilot. As I said before, a pilot working overseas is not required to maintain an FAA medical so those pilots would be excluded from the list of current ATPs with a medical. If they are holding a foreign equivalent medical it can be assumed they are able to hold a FAA medical.
Again, just because you personally can't observe something doesn't mean it's not true. There are in fact many thousands of US pilots working overseas and my opinion (since you presented your opinion) is that most of them would be willing to work in the US if the pay was competitve. Currently a pilot who is current PIC in a regional jet can make about 12 times more money starting work for an overseas carrier than for a US carrier and that's not even considering the massive tax credits. Even the best paid ten year captains at a US regional airline can make about twice as much money in their first year at a foreign airline while in the US if they switch jobs, even to a major, they are looking at a massive pay cut earning as little as 1/5th their current pay.
Therefore, if your opinion is that they aren't interested in returning to work in the US it's pretty easy to conclude that it's because the pay sucks. The fact that there are qualified people who choose not to work for you doesn't mean you have a labor shortage, it means you aren't competitive in the market.
This isn't really true, it wasn't addressed in this manner and in fact the study reports a significant decline in the number of students enrolled in US flight schools. It also reports that flight schools show a shortage of the availability of qualified instructors while the number of available CFIs is more than sufficient to meet demand. The problem again is pay.
I don't think this is a significant issue regarding the validity of the report. When you are set on finding certain results, as you are, you will nitpick and look for errors for the sake of it. As was stated there are margins for error and the GAO study addressed this.
Don't forget the reason this study was performed was because the Regional Airlines complained new safety regulations would exacerbate an already existing shortage of qualified pilots. The fact that an airline refuses to compete with corporate flight departments and non aviation jobs is not the Government's problem. After all, it's not the responsibility of the Government to staff private jets so if the airlines paid pilots competitively the problem wouldn't exist. This is the point of the study and it's perfectly valid.
You don't need to call every single ATP and ask what their motivations are. A small random sample can be used. Most pilots know a small sample of fellow ATPs who are not working as airline pilots for various reasons. Some of them have no intentions of flying again...stay at home moms...successful entrepreneur who now owns his own jet...etc. Most of those people are just working in a different career and many will say they gave up the airline career because of money or the unwillingness to start at the bottom after a layoff.
Just because you don't have exact numbers is not reason to discount those pilots as available supply.
You are deliberately attempting to confuse the issue (are you a politician?) except you forget the company you're in. As pilots we understand Low cost carriers and regional carriers are not the same thing. Regional carrier ticket prices are set by the mainline who handles all their marketing. "Low cost carriers" such as Southwest, Frontier, JetBlue, Spirit, Virgin etc. are not the same thing and don't have difficulty hiring pilots that regionals do because they pay much better.
You are trying to confuse the issue of ticket prices and marketing with pilot supply. These are two completely separate issues and with record profits across the board it's a tough sell to tie them together now.
Fascinating but it has little to do with this discussion and in fact you are contradicting yourself. On one hand you cry there is a pilot shortage and echo the regional airline managers' sob story and on the other you're saying there won't be a shortage anyway because we'll all be replaced by robots.
I don't see in GAO-14-232 where there are tens of thousands of American pilots overseas, waiting to come back to fly in the U.S.. I do see where it mentions around 8,000 pilots with FAA ATP certificates, and around 16,000 pilots with FAA commercial tickets, have a residence overseas. Did you know that Embry-Riddle and Flight Safety International train far more foreign pilots than American pilots? And those foreign pilots get FAA certificates? Those foreign pilots go fly for the foreign airlines that sponsored them, and have addresses overseas.
They aren't waiting for pilot jobs in the U.S., so that premise is false. There may be American pilots overseas who would come back, I've talked to some, but I've seen nothing to indicate many thousands of them.
Therefore, if your opinion is that they aren't interested in returning to work in the US it's pretty easy to conclude that it's because the pay sucks. The fact that there are qualified people who choose not to work for you doesn't mean you have a labor shortage, it means you aren't competitive in the market.
Several sources in this report look at how many students are moving through U.S. flight schools, without regard to how many are actually U.S. citizens....
One of the big sources cited in this study is Audries Aircraft Analysis. When that study came out I contacted the author with questions about citizenship, on the supply end, and about non-airline demand for pilots, which is actually huge and ignored by every study out there. This is a very tough subject to get real numbers for, and Brant did a better job than most, but still left out some huge numbers.
Don't forget the reason this study was performed was because the Regional Airlines complained new safety regulations would exacerbate an already existing shortage of qualified pilots. The fact that an airline refuses to compete with corporate flight departments and non aviation jobs is not the Government's problem. After all, it's not the responsibility of the Government to staff private jets so if the airlines paid pilots competitively the problem wouldn't exist. This is the point of the study and it's perfectly valid.
Nobody has any data on Americans with ATPs waiting to return to the profession. It is possible, but seems unlikely, and there are no numbers.
Just because you don't have exact numbers is not reason to discount those pilots as available supply.
For the past 15+ years, the major airlines and the financial press have been clearly stating that the low-cost carriers are responsible for keeping ticket prices low.
You are trying to confuse the issue of ticket prices and marketing with pilot supply. These are two completely separate issues and with record profits across the board it's a tough sell to tie them together now.
DARPA. ALIAS. Read about it. I've worked in industrial automation for 30 years, and I'm stunned at the automation that is coming out of research labs and into production. The technology exists, DARPA is just looking at how to integrate it into EXISTING cockpits and culture. They aren't talking ten years from now. It will happen slowly, and I think I'll be safe as a captain at a major. But a large drop in demand for pilots will effect every pilot in the industry, and most of us will still be here. Pilots who are new today, will be in trouble. This industry loves to shed pilots.
Last edited by NineGturn; 03-17-2015 at 04:18 PM.
#474
It is my understanding from multiple sources that until 2013, foreign students at U.S. flight schools went home with an ATP. It is no longer true, but would account for a lot of ATPs overseas. One of the unintended consequences of the 1500-hour rule, is that foreign students are no longer getting ATPs, will no longer be as willing to come fly for U.S. airlines if wages go up here. Good for us I guess.
You are deliberately attempting to confuse the issue (are you a politician?) except you forget the company you're in. As pilots we understand Low cost carriers and regional carriers are not the same thing. Regional carrier ticket prices are set by the mainline who handles all their marketing. "Low cost carriers" such as Southwest, Frontier, JetBlue, Spirit, Virgin etc. are not the same thing and don't have difficulty hiring pilots that regionals do because they pay much better.
You are trying to confuse the issue of ticket prices and marketing with pilot supply. These are two completely separate issues and with record profits across the board it's a tough sell to tie them together now.
You are trying to confuse the issue of ticket prices and marketing with pilot supply. These are two completely separate issues and with record profits across the board it's a tough sell to tie them together now.
LCCs under the control of majors are the way the majors kept independent LCCs in check, somewhat. The majors have also had to become LCCs themselves to compete and match ticket prices: lower prices and fewer comforts. This is where profits and pilot shortage begin to connect. LCCs can't find enough pilots...they can't expand into markets where majors are raising prices...and price hikes hold. It has been happening for the past year, prices and profits are finally going up for the majors, because the LCCs are unable to expand into markets where prices are higher than their costs.
Automation, that's a whole different topic, but I throw it in because it is relevant, and it is my specialty. The future is fewer ATP pilots in cockpits, whether from MPL pilots or automation or whatever, that would explain the lack of concern from airlines. The best way for airline management to have their dreams come true, would be a pilot shortage that inconveniences voters and costs donors money. Don't forget how quickly the sequester ended when the FAA threatened to close towers - air travel problems are political kryptonite for both sides of Congress. Fewer pilots in cockpits is just a stroke of a pen, or a few pens if ICAO, but those pens are primed and ready when the political climate favors lower standards.
I argue we are headed for a pilot shortage, not to blow lavender-scented smoke up your pants and claim we are all going to get rich. It is a warning. Good things are not coming from it.
#475
...The number one bad assumption is that pilot supply has ever had any connection to pilot demand, which it has not... So looking at falling wages and concluding there is too much supply is incorrect...
...Did you know that Embry-Riddle and Flight Safety International train far more foreign pilots than American pilots? And those foreign pilots get FAA certificates? Those foreign pilots go fly for the foreign airlines that sponsored them, and have addresses overseas. They aren't waiting for pilot jobs in the U.S., so that premise is false...
... Nobody has any data on Americans with ATPs waiting to return to the profession. It is possible, but seems unlikely, and there are no numbers...
#476
Gets Weekends Off
Joined: May 2014
Posts: 265
Likes: 0
From: Captain - Retired
It is my understanding from multiple sources that until 2013, foreign students at U.S. flight schools went home with an ATP. It is no longer true, but would account for a lot of ATPs overseas. One of the unintended consequences of the 1500-hour rule, is that foreign students are no longer getting ATPs, will no longer be as willing to come fly for U.S. airlines if wages go up here. Good for us I guess.
I believe the GAO study excluded Commercial pilots without a current medical which would have excluded all those foreign pilots who went home once their medicals expired although I think that was a separate number. Either way, the number of foreigners with a commercial certificate isn't significant as far as the results of the study.
...Regionals are LCCs, that have been taken under the wings of majors, sometimes grown by the majors from tiny ULCCs. This was not done out of benevolence, it was a very successful strategy to control competition. LCCs are all about the lowest costs possible: lower prices and fewer comforts - that certainly applies to regionals. Independent LCCs undercut the majors to gain market share wherever their costs are lower than majors are charging, and it has worked very well to keep majors from charging, in some cases, even what it costs to operate.
LCCs under the control of majors are the way the majors kept independent LCCs in check, somewhat. The majors have also had to become LCCs themselves to compete and match ticket prices: lower prices and fewer comforts. This is where profits and pilot shortage begin to connect. LCCs can't find enough pilots...they can't expand into markets where majors are raising prices...and price hikes hold. It has been happening for the past year, prices and profits are finally going up for the majors, because the LCCs are unable to expand into markets where prices are higher than their costs.
I argue we are headed for a pilot shortage, not to blow lavender-scented smoke up your pants and claim we are all going to get rich. It is a warning. Good things are not coming from it.
Generally a labor shortage is always a good thing for anyone seeking work in that field. Not so good if you're hiring.
#477
Lots to disagree about I guess. If we change "regional" to "affiliate" airline, this discussion would be easier, affiliate meaning contract airlines serving majors. All twelve affiliate airlines have a business strategy that emphasizes low-cost over comfort, convenience, network size, or any other common airline strategy for gaining market share. That makes all the affiliate airlines LCC by definition. Some also fly independent flights not for the majors, where they are understood to be LCC.
For the past decade, independent LCCs grew quickly wherever the market allowed daylight between price and cost. The majors had higher costs, so if they weren't losing money, the LCCs were able to take passengers, the majors were losing steadily. The majors couldn't cut enough costs (primarily labor) to compete, so they contracted with or grew their own LCC divisions. The majors generally didn't make money on their affiliate relationships, I've heard they mostly lost money but justified it. The strategy maintained their networks, which is still the biggest factor in selling airline tickets, even over price. People will still pay a little to stay on the same network, network size remains king.
The airline industry is powered by risk-taking egomaniacs who want to be in the airline business. There are always people trying to start up new airlines, or make their airline bigger, even when none are making money. This is why supply doesn't follow demand, and there is no capacity discipline. Cries from the financial sector for capacity discipline have always been ignored. Today the financial sector is fawning over the airline sector, for finally having capacity discipline. Does anyone really think airline executives suddenly found religion? Demand is growing slowly, and the majors can't meet it with affiliate flying or internal growth.
American and Delta can't move into Cleveland where United pulled their affiliate flying for lack of pilots. Frontier/Spirit/Southwest moved in quickly, but now have cut back as well. Small markets are losing service all over the country due to lack of pilots to serve them. The independent LCCs are in fact struggling to find pilots fast enough to replace those leaving. Major airlines say the regionals contain a pool of about 6,000 pilots they want, and that is drying up quickly.
If there are tens of thousands of qualified pilots waiting for things to turn, they are impressively patient or not very qualified.
You need to look at this as a resource shortage. When farmers run out of one source of calcium supplements for their fields, they turn to another source, or plant something that doesn't need calcium. Higher prices lead them to find other ways if they can, rather than double or triple their costs. Not just farmers, but all kinds of government and industry experts rush in to find alternatives to calcium supplements. To think ATP pilots will continue to be the only solution if they become scarce, is one-dimensional. There are a lot of other options on the table, and a lot of smart people looking at this as an opportunity. The automation option is growing quickly, will certainly become the preferred option eventually.
I have fourteen years left at a major, will retire a wide-body captain if I stick it out and nothing changes. If FOs are entirely replaced by MPLs or automation or an empty seat, I'll still be ok. But I'm not quitting my day job anytime soon.
For the past decade, independent LCCs grew quickly wherever the market allowed daylight between price and cost. The majors had higher costs, so if they weren't losing money, the LCCs were able to take passengers, the majors were losing steadily. The majors couldn't cut enough costs (primarily labor) to compete, so they contracted with or grew their own LCC divisions. The majors generally didn't make money on their affiliate relationships, I've heard they mostly lost money but justified it. The strategy maintained their networks, which is still the biggest factor in selling airline tickets, even over price. People will still pay a little to stay on the same network, network size remains king.
The airline industry is powered by risk-taking egomaniacs who want to be in the airline business. There are always people trying to start up new airlines, or make their airline bigger, even when none are making money. This is why supply doesn't follow demand, and there is no capacity discipline. Cries from the financial sector for capacity discipline have always been ignored. Today the financial sector is fawning over the airline sector, for finally having capacity discipline. Does anyone really think airline executives suddenly found religion? Demand is growing slowly, and the majors can't meet it with affiliate flying or internal growth.
American and Delta can't move into Cleveland where United pulled their affiliate flying for lack of pilots. Frontier/Spirit/Southwest moved in quickly, but now have cut back as well. Small markets are losing service all over the country due to lack of pilots to serve them. The independent LCCs are in fact struggling to find pilots fast enough to replace those leaving. Major airlines say the regionals contain a pool of about 6,000 pilots they want, and that is drying up quickly.
If there are tens of thousands of qualified pilots waiting for things to turn, they are impressively patient or not very qualified.
A warning for who? I don't think the supply of pilots is going to change the progress of automation in the aerospace industry and an attempt to frighten pilots into being submissive for fear of being replaced by robots is silly.
Generally a labor shortage is always a good thing for anyone seeking work in that field. Not so good if you're hiring.
Generally a labor shortage is always a good thing for anyone seeking work in that field. Not so good if you're hiring.
I have fourteen years left at a major, will retire a wide-body captain if I stick it out and nothing changes. If FOs are entirely replaced by MPLs or automation or an empty seat, I'll still be ok. But I'm not quitting my day job anytime soon.
#478
... For the past decade, independent LCCs grew quickly wherever the market allowed daylight between price and cost. The majors had higher costs, so if they weren't losing money, the LCCs were able to take passengers, the majors were losing steadily. The majors couldn't cut enough costs (primarily labor) to compete, so they contracted with or grew their own LCC divisions. The majors generally didn't make money on their affiliate relationships, I've heard they mostly lost money but justified it. The strategy maintained their networks, which is still the biggest factor in selling airline tickets, even over price. People will still pay a little to stay on the same network, network size remains king. The airline industry is powered by risk-taking egomaniacs who want to be in the airline business. There are always people trying to start up new airlines, or make their airline bigger, even when none are making money. This is why supply doesn't follow demand, and there is no capacity discipline. Cries from the financial sector for capacity discipline have always been ignored. Today the financial sector is fawning over the airline sector, for finally having capacity discipline. Does anyone really think airline executives suddenly found religion? Demand is growing slowly, and the majors can't meet it with affiliate flying or internal growth....
... American and Delta can't move into Cleveland where United pulled their affiliate flying for lack of pilots../
... Small markets are losing service all over the country due to lack of pilots to serve them. The independent LCCs are in fact struggling to find pilots fast enough to replace those leaving. Major airlines say the regionals contain a pool of about 6,000 pilots they want, and that is drying up quickly...
... If there are tens of thousands of qualified pilots waiting for things to turn, they are impressively patient or not very qualified...
...You need to look at this as a resource shortage. When farmers run out of one source of calcium supplements for their fields, they turn to another source, or plant something that doesn't need calcium. Higher prices lead them to find other ways if they can, rather than double or triple their costs. Not just farmers, but all kinds of government and industry experts rush in to find alternatives to calcium supplements. To think ATP pilots will continue to be the only solution if they become scarce, is one-dimensional. There are a lot of other options on the table, and a lot of smart people looking at this as an opportunity. The automation option is growing quickly, will certainly become the preferred option eventually...
#479
Gets Weekends Off
Joined: May 2014
Posts: 265
Likes: 0
From: Captain - Retired
Lots to disagree about I guess. If we change "regional" to "affiliate" airline, this discussion would be easier, affiliate meaning contract airlines serving majors. All twelve affiliate airlines have a business strategy that emphasizes low-cost over comfort, convenience, network size, or any other common airline strategy for gaining market share. That makes all the affiliate airlines LCC by definition. Some also fly independent flights not for the majors, where they are understood to be LCC.
For the past decade, independent LCCs grew quickly wherever the market allowed daylight between price and cost. The majors had higher costs, so if they weren't losing money, the LCCs were able to take passengers, the majors were losing steadily. The majors couldn't cut enough costs (primarily labor) to compete, so they contracted with or grew their own LCC divisions. The majors generally didn't make money on their affiliate relationships, I've heard they mostly lost money but justified it. The strategy maintained their networks, which is still the biggest factor in selling airline tickets, even over price. People will still pay a little to stay on the same network, network size remains king.
The airline industry is powered by risk-taking egomaniacs who want to be in the airline business. There are always people trying to start up new airlines, or make their airline bigger, even when none are making money. This is why supply doesn't follow demand, and there is no capacity discipline. Cries from the financial sector for capacity discipline have always been ignored. Today the financial sector is fawning over the airline sector, for finally having capacity discipline. Does anyone really think airline executives suddenly found religion? Demand is growing slowly, and the majors can't meet it with affiliate flying or internal growth.
American and Delta can't move into Cleveland where United pulled their affiliate flying for lack of pilots. Frontier/Spirit/Southwest moved in quickly, but now have cut back as well. Small markets are losing service all over the country due to lack of pilots to serve them. The independent LCCs are in fact struggling to find pilots fast enough to replace those leaving. Major airlines say the regionals contain a pool of about 6,000 pilots they want, and that is drying up quickly.
If there are tens of thousands of qualified pilots waiting for things to turn, they are impressively patient or not very qualified.
For the past decade, independent LCCs grew quickly wherever the market allowed daylight between price and cost. The majors had higher costs, so if they weren't losing money, the LCCs were able to take passengers, the majors were losing steadily. The majors couldn't cut enough costs (primarily labor) to compete, so they contracted with or grew their own LCC divisions. The majors generally didn't make money on their affiliate relationships, I've heard they mostly lost money but justified it. The strategy maintained their networks, which is still the biggest factor in selling airline tickets, even over price. People will still pay a little to stay on the same network, network size remains king.
The airline industry is powered by risk-taking egomaniacs who want to be in the airline business. There are always people trying to start up new airlines, or make their airline bigger, even when none are making money. This is why supply doesn't follow demand, and there is no capacity discipline. Cries from the financial sector for capacity discipline have always been ignored. Today the financial sector is fawning over the airline sector, for finally having capacity discipline. Does anyone really think airline executives suddenly found religion? Demand is growing slowly, and the majors can't meet it with affiliate flying or internal growth.
American and Delta can't move into Cleveland where United pulled their affiliate flying for lack of pilots. Frontier/Spirit/Southwest moved in quickly, but now have cut back as well. Small markets are losing service all over the country due to lack of pilots to serve them. The independent LCCs are in fact struggling to find pilots fast enough to replace those leaving. Major airlines say the regionals contain a pool of about 6,000 pilots they want, and that is drying up quickly.
If there are tens of thousands of qualified pilots waiting for things to turn, they are impressively patient or not very qualified.
You need to look at this as a resource shortage. When farmers run out of one source of calcium supplements for their fields, they turn to another source, or plant something that doesn't need calcium. Higher prices lead them to find other ways if they can, rather than double or triple their costs. Not just farmers, but all kinds of government and industry experts rush in to find alternatives to calcium supplements. To think ATP pilots will continue to be the only solution if they become scarce, is one-dimensional. There are a lot of other options on the table, and a lot of smart people looking at this as an opportunity. The automation option is growing quickly, will certainly become the preferred option eventually.
I have fourteen years left at a major, will retire a wide-body captain if I stick it out and nothing changes. If FOs are entirely replaced by MPLs or automation or an empty seat, I'll still be ok. But I'm not quitting my day job anytime soon.
#480
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Scott sure has a lot of posts in regional threads, mostly about pilot shortages. In 2013 he said something in the Eagle thread to the effect of "hopefully they make this place worth coming to." He also worked in the Air Force in the 80s I think...I would quote it but it's hard on my phone to copy and paste that much. I'm trying to figure out his timeline too. Maybe he did the air force thing, worked for a Fortune 500 company as management, then got on with a major at some point and does automation as a side gig?
"I heard the pilot shortage rumors in the '80s, when I was flying in the Air Force."
Could check if he held two jobs at once.
"I heard the pilot shortage rumors in the '80s, when I was flying in the Air Force."
Could check if he held two jobs at once.
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