FX Excursions

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U.S. Pilot Shortage: Will Airlines Continue to Suffer?

by Allie Menzione

Apr 3, 2018
eFlyer Lead

After one airline succumbs to the U.S. pilot shortage, will other airlines follow suit? Great Lakes Airlines, a 40-year-old company in Cheyenne, Wyo. (with a hub at Denver International Airport), stopped flights March 26. The issue? It couldn’t hire enough pilots.

The airline was unique in that it flew small turboprops to less trafficked destinations in the Mountain West, including Sheridan, Dodge City, Nebraska, the Great Lakes and more. It has not yet filed for bankruptcy, leaving small markets like Cheyenne, Wyo., without any air service.

Smaller airlines have felt the effects of the pilot shortage for some time. Some shifted the model to accommodate changing tides by shedding the smallest jets and turboprops for larger planes carrying more passengers. Airlines such as Horizon Air cut certain routes or canceled flights because they lacked pilots.

While the pilot shortage has its most cutting effects on small-town airlines, the entire regional airline industry has felt the impact. Smaller regional lines faced competition from larger airlines for pilots after recent regulatory changes require pilots to have many more hours of flight time experience in the types of planes they typically fly. This not only decreased the amount of pilots available, but increased training costs for pilots trying to obtain enough experience to fly with regional airlines.

Larger regional airlines such as United Express, American Eagle and Delta Connection stayed on top due to their ties to larger partners — and the ability for pilots to transition to a job at a major airline.

Across most airlines, despite the regional trend, pilots are drawn to airlines with increasing fair wages, big signing bonuses and an improving industry. Large regional carriers improved pay so significantly lifetime earnings are possibly higher than ever, higher even than doctors and lawyers, according to The Regional Airline Association. The Associated Press reported in March universities with pilot-training programs are seeing a large increase in applications.

In response to closures and threats to the smaller regional airlines like Great Lakes Airlines, The Regional Airline Association would like to see the 1,500-hour rule for small plane pilots relaxed, reducing the training costs for aspiring pilots —  breaking down the barrier to entry for pilots to join smaller regional airlines.

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