Industry Hires Far Out Pace 2003's Mark

Just as the regional airline industry has been setting the benchmark for profitability, so too is it the hiring king when it comes to pilots. After hitting a 10-year low in pilot hirings, the airline industry has nearly surpassed all of 2003 pilot hirings.

Last year, 195 airlines tracked by Atlanta-based AIR Inc. hired 4,743 pilots. Through May, the industry has hired 4,068 pilots. The largest number, 1,792 pilots, were hired by the "national" carriers (carriers with sales between $100 million and $1 billion), which includes the 10 largest regionals, some mid-size cargo carriers and five of the low-cost carriers. The bulk of these hirings were by the regional carriers, said company president Kit Darby. The second largest group, 913, were the jet operators, which includes Part 121 operators and charter operations. In addition, 693 pilots were hired by non-jet operators, which includes both cargo and passenger operators.

AIR projects that about 9,000 new pilots will be hired this year. The high point was in 2000 when 19,000 pilots were hired. Darby said that the nationals will probably hire 3,455 pilots, the jet operators will hire 1,855 and the non-jet operators will hire 1,427.

"The feeder operation of virtually every major carrier is booming," Darby noted. "They have been booming during a down period. We always see regionals and small carriers grow during down periods when the majors shed their routes.

"I believe the RJ [regional jet] is part of the solution. It is like we have a new tool. Once everybody has enough tools in their toolbox, they all will be booming again. We have almost reached the point that everyone has enough RJs," Darby said.

The regional carriers have been adding scores of jets over the last several years and will continue to do so throughout this year. On average, he said, each new plane put into service by a jet operator requires six additional pilots. The national carriers add nine new pilots for each new plane - while many of these planes are RJs, this average could be skewed by the Boeing [BA] 737s that AirTran [AAI] is adding or the Airbus 320s that JetBlue Airways [JBLU] is acquiring. According to AIR's surveys, the average new pilot is a 34-year-old man with 4,572 flight hours who has not been in the military. The bulk of these new pilots have been getting flight time in other aviation sectors. While many of the airlines are now flying only jet aircraft, Darby said, the airlines "still would love the pilots to have some turboprop experience." Forty-three percent of the new hires have some jet experience.

As the airlines gear up to hire more than 9,000 pilots this year, Darby said few of the 9,721 furloughed pilots would be applying for these position. These pilots may seek positions with other majors or fast-growing low-cost carriers, but few will apply for jobs at the regional carriers. In fact, he said, many of the positions earmarked for furloughed network pilots in the various jets-for-jobs programs have not attracted enough of the targeted pilots.

"If they start over, it is not very attractive. If the pay doesn't meet the child care bills, then it is not a good business decision," Darby said.

Darby monitors the movements of the furloughed pilots by reviewing the average flight times of the new pilots. If a larger number of experienced network pilots applied at the regionals, the averages would jump dramatically.

Even though the bulk of the furloughed pilots remain on the sidelines, few carriers are having any difficulties in attracting pilot applicants.

"We are not having trouble getting pools of candidates," said Doug Shockey, COO of Pinnacle Airlines [PNCL]. "We do go through lots of applicants before we hire them. We look to see that they fit our style - fast-moving and hard-working."

Pinnacle anticipates hiring 340 pilots this year. The candidates must have a minimum of 2,000 flight hours including 500 on multi-engine aircraft. Shockey said Pinnacle's recent hires have come from other regional carriers, the general aviation sector and some furloughed from major carriers. Few candidates have come directly from flight academies, he noted.

American Eagle anticipates hiring 575 pilots this year, said spokeswoman Lisa Bailey. It has already hired 283 pilots this year. The new pilots, she said, did include 139 who formerly flew for American Airlines [AMR].

At Comair, a unit of Delta Air Lines [DAL], the carrier has experienced rapid growth over the last two years. It expects to hire 140 pilots this year.

The average new pilot has 3,500 hours of flight time, said Nick Miller, a company spokesman. "We have not had difficulties in filling positions. We have been fortunate to find a sufficient number of recruits." Its new pilots include those who have been flying for the majors, but not any of Delta's furloughed pilots.

Delta also runs a flight training school, Delta Connection Academy. The Orlando-based school has placed 75 grads thus far this year with a number of regional carriers, Miller said. Last year, the school placed 100 graduates. There are currently 700 students in the school.

The Pan Am International Flight Academy, also based in Orlando, has placed 55 graduates with regional airlines so far this year, said Marilyn Ladner, senior vice president of the career pilot division. Last year, it placed 97 graduates. During the 10-month course, the students are trained on a Bombardier [BBD] CRJ 200. >>Contact: Kit Darby, Air Inc., (770) 996-0000; Doug Shockey, Pinnacle, (901) 348-4100; Lisa Bailey, American Eagle, (817) 963-1602; Nick Miller, Comair, (859) 767-2832; Marilyn Ladner, Pan Am, (772) 462-8800.<<