Sep 13, 22

The U.S. has a pilot shortage — here’s how airlines are trying to fix it

CNBC – September 13, 2022

U.S. airlines are facing a severe pilot shortage.

Management consulting firm Oliver Wyman estimates the industry is facing a deficit of about 8,000 pilots, or 11% of the total workforce, and says the shortfall could reach 30,000 pilots by 2025.In a bid to slash costs during the Covid pandemic, airlines grounded planes, and offered early retirement packages to thousands of senior pilots. Carriers have also seen fewer pilots coming from the military which has faced recruitment issues of its own.
“It’s great to see that there’s such a need for pilots, but there’s a level of, how did this happen that you’re almost standing on a street corner, step right up, come be a pilot, I mean it, here’s some money,” said Dennis Tajer, spokesman for the Allied Pilots Association and a pilot with American Airlines. “That’s a sign that we have failed as an institution.”
To attract the next generation of pilots, carriers are moving more of their early training programs in-house.
Jul 29, 22

Shortage of Pilots in Europe

Shortage of Pilot in Europe – July 2022 Posted by the Telegraph

Airlines in Europe must hire 6,000 pilots a year for the next two decades as demand for jetting off abroad rebounds strongly, Boeing has said.

European carriers will need to hire 122,000 new pilots between now and 2041, the American planemaker said. A similar number is required in both North America and China.

Demand for qualified pilots may struggle to keep up with supply as the world faces a shortage of flight instructors.

“Because the industry already was heading toward a global pilot shortage before the pandemic, many airlines instituted cadet pilot programs to fill their talent pipelines,” Boeing said in a new report looking at aviation staffing levels.

“Operators that paused or cancelled these programs during the pandemic will likely resume their focus on new pilot development. Concurrently, the industry as a whole must address a global shortage of certified flight instructors.”

The warning on staffing levels comes as British Airways pilots demand the airline rips up a salary sacrifice scheme that was agreed during the pandemic as part of a plan to reduce the number of forced redundancies.Pilots union Balpa remains in talks with bosses at the carrier to replace a scheme that reduces pre-pandemic salaries with a deal that incorporates inflationary rises.

The Boeing report also forecast that European carriers would need to hire 207,000 new cabin crew over the next 19 years – the highest staffing requirement of any region.

Airlines have struggled to re-hire cabin crew that were laid off during the pandemic as bookings surge this summer.

EasyJet was forced to remove seats from its aircraft in order to reduce the number of cabin crew required on board, the Telegraph revealed in May, after suffering a shortfall in staff.

British Airways, meanwhile, began offering £1,000 “golden hello” bonuses if cabin crew switched from their current airline to the UK flag carrier.

Ryanair is currently facing upheaval among its on-board teams based in Spain. The Spanish cabin crew union announced on Wednesday that members will strike for four days every week between August 8 and next January.

Union leader Lidia Aransanz said: “As the company has been unable to listen to the workers, we have been forced to call new strike days.”

The unions are demanding 22 days of holiday and two extra months payment per year to comply with Spanish legislation, she added.

A Ryanair spokesman said: “Ryanair has recently reached an agreement with the main Spanish CCOO union on pay, rosters and allowances for its Spanish cabin crew. Recent strikes by USO/SITCPLA have been poorly supported with minimal effect. Ryanair has operated over 45,000 flights to/from Spain over the last 3 months with less than 1% affected by crewing and Ryanair expects minimal (if any) disruption this winter.”

Jul 20, 22

Asia Emerging from Covid

Aviation in Asia is slowly recovering from COVID.   The number of domestic flights in many (actually most) of the Asian countries has returned to 2019 pre-Covid levels, but the number of international flights have not recovered.  

Asia has gone from one of the fastest growing aviation stories to one of the slowest to emerge.  It was only around April of 2022 that the momentum began to turn positive.  Most experts believe that Asian aviation can thrive again in the future, however, as long as the borders of China remain closed, progress will be extremely difficult if not impossible.

The Aviation market in India is recovering and it less dependent on China than the other countries. 

The travel industry believes that travel in Asia will increase during in the future (2023) due to pent up demand.  Australia, Japan, Korea, Singapore and New Zealand will be key destinations in the future.  Delta and United plan to add additional seats to Asia during this year

Jul 19, 22

Airline staff shortages expected to last into 2023

Airline staff shortages expected to last into 2023 Published by Axios – June 19, 2022

Airline staffing shortages, which are already disrupting summer vacation plans, could extend well into 2023, some industry officials say.

The big picture: Airlines had two years and billions of dollars in government aid to make sure they were ready for passengers to return to the skies after the pandemic. But demand has snapped back so quickly that they don’t have enough people to fly the planes, serve the passengers or unload their bags.
The result: flight delays, cancellations and lots of frustration for travelers.

The disruptions are happening everywhere as borders reopen between places like the U.S., Europe and Australia, unleashing two years of pent-up demand.

• The staffing crisis is so bad that some airports including Amsterdam’s Schiphol and London’s Gatwick airports are scrapping flights and limiting passenger numbers during the peak of the travel season.
• The CEO of Malaysian Airlines warned it may take as long as 12 months for labor shortages to ease,  Bloomberg reports.
• “There’s a supply and demand imbalance right now,” American Airlines CEO Robert Isom said earlier this month. In the U.S., he said, “it really is within the regional carrier ranks.”

Flashback: Early in the pandemic, airlines urged many senior pilots, flight attendants and other employees to take buyouts or early retirements, anticipating the industry would shrink and take some time to crawl back.

• The federal government’s payroll support program ended in October 2020, forcing tens of thousands more airline employees to be furloughed — only to be recalled three months laterwhen Congress passed another COVID relief package.
• But bottlenecks in training and recertification are keeping some of those crew from getting back into service, said Dennis Tajer, a spokesman for the Allied Pilots Association, which represents American pilots.

What’s happening: U.S. airlines are offering bigger paychecks in the hopes of easing the labor crunch.

• American’s regional carriers Piedmont and Envoy — which both fly under the American Eagle brand — gave big raises to their pilots, including a temporary 50% pay hike through the end of August 2024.
• Isom said the airline will offer bigger raises for its 14,000 mainline pilots, too.
• Higher pay rates at regional airlines could put pressure on major and mid-tier carriers, writes Skift.com, a travel industry publication.

Yes, but: higher labor rates could also accelerate the phaseout of smaller regional jets, leaving some smaller markets unconnected to large hub airports.

Meanwhile, Alaska and United both opened flight training schools earlier this year and are offering financial aid to help defray the $70,000 cost of becoming a pilot.

• Still, the new programs won’t produce certified crew members for several years, Skift notes.

The bottom line: Despite the staff shortages and enormous economic headwinds, revenge traveldemand remains strong, giving airlines hope for a modest return to profitability this year.

• “Never in my 30-year career have we seen demand that is as robust as it is,” Alaska Airlines CEO Ben Minicucci told Axios.
Nov 10, 19

Asian Flight Market Continues to Explode

The aviation market in Asia continues to explode.  Boeing is forecasting 41,000 new aircraft are required between now and 2036.  CAE is forecasting the need of 255,000 new pilots by 2027.

The compensation rates in China are exploding which are influencing the pay rates of other Asian Airlines.  The airlines in the USA have recently increased their pay to stop the exodus of pilots to go fly in Asia.

Until recently, Russia was a good source of airline pilots, especially Captains.  These young Russian Captains could move from a $4,000 USD per month job in Russia to making over $28,000 USD per month in China.  About two years ago, Putin realized he was losing the young pilots and stopped the aviation authority in Russia from certifying pilots’ licenses.  Effectively, this stopped Russian pilots from leaving.  Only the pilots that moved early (2014 through 2016) could stay.

It seems that there is no end to the growth of Aviation in China.

May 18, 04

Australian Free Trade Agreement

Office of the United States Trade Representative

The United States monitors implementation of the U.S.-Australia FTA closely and meets regularly with Australia under the FTA to discuss the functioning of the agreement and address specific trade issues.  The Joint Committee set up under the FTA supervises implementation of the Agreement and review of the overall trade and investment relationship.  The agreement also establishes committees on goods, agriculture, sanitary and phytosanitary matters, and financial services as well as subcommittees on labor and environment, which report to the Joint Committee.

The full text of the Agreement is available here and the Advisory Committee Reports are available here