Why The U.S. Has A Severe Pilot Shortage

Video Statistics and Information

Video
Captions Word Cloud
Reddit Comments
Captions
Now air speed is alive. And we rotate at 55, 55 rotate, pull up. Yes, look how beautiful this bird flies and we'll climb with 80 knots. This 23-year-old is part of Alaska Airlines effort to fix the pilot shortage crisis. North American airlines have a deficit of 8,000 pilots or about 11% of the total workforce. Do you see the right one? Yes. 324. All right. Here we go. It's a great feeling to know that I could take control of an airplane, tiny as me, 5'3" short little girl, having a little booster seat. Alaska's Ascend Pilot Academy, launched in 2022, offers would be aviators, financial incentives and employment opportunities at Alaska Airlines and regional partner Horizon Air. Programs like this are perhaps the most significant step carriers are taking to address the exodus of pilots. The shortfall could reach up to 30,000 in North America by 2025. There's just not enough pilots, and it's not a quick fix on pilots. And the industry at the start of the year was going to try to hire 13,000 pilots. The last decade there's been a new supply of 5 to 7,000 pilots. The math just doesn't work. 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. That's a sign that we have failed as an institution. And it's not just the lack of pilots that is impacting aviation, mechanics, baggage handlers and air traffic controllers are also in short supply. So what led to the shortage of pilots in the US and what are carriers like United, Delta and Alaska doing to fix the problem? Caitlyn Jimenez graduated from Cal State, L.A., with a degree in child development. That's when I was, like, putting my foot down after graduation I was like, I can't go into teaching. I want to do something different, which is fly. I want to fly. I want to fly. I'm eager to fly. Beyond telling her parents, her second biggest obstacle was figuring out how to pay for flight school. To become an airline pilot costs range from $80,000 to over $100,000, made more difficult by years of training. Where am I going to live? How am I going to afford it? How am I going to pay off the loans? The costs are definitely a barrier to becoming a pilot. Jimenez enrolled in Alaska's Ascend Pilot Academy in Hillsboro, Oregon. The program offers eligible students a stipend of up to $25,000, as well as low interest loans. Jimenez, along with most of her class, had no prior piloting experience. And full power right rudder. Beautiful. Cadets start their day in ground school, followed by training on a flight simulator. 31. One of the things that we do with flight training is we progressively introduce more and more complex maneuvers. So what we're going to practice is an engine failure. What you're going to do is bring the throttle back to idle after you rotate and then try to land the aircraft safely. Pitch. Pitch, pitch. Lower the nose. Lower the nose. I get your flaps, doing great. So right now it looks pretty good. We have some thunderstorm segments at the coast and we have some in Seattle. Preflight planning is followed by an inspection of the aircraft. Exactly. And on board training with an instructor. Alaska says it can take a year to 18 months to train a cadet to become a commercial pilot. Then also the same. We just check if the person before us did not have a tail strike. Plus 1,500 hours or roughly two years to get a FAA pilot license. Oregon's challenging weather conditions are another obstacle. So it's very quick. You're going to learn something today and then you're going to do it the next day. The Academy also hopes to diversify who sits in the pilot's seat? Only about 6% of us airline pilots are people of color, and less than 6% are women. I do want to represent me being a Mexican and me being a female and me being small and tiny that, you know, if I could do it, people could do it. Now, at 900, we can turn one Westbound. (Radio Traffic) And you can just continue climbing. U.S. carriers are scrambling for solutions to add and retain crew members. American Airlines owned regional carriers Piedmont and Envoy hiked pilot pay by 50% through the end of August 2024. Delta, along with several carriers, have dropped the four year degree from pilot hiring requirements. And SkyWest and Frontier Airlines have recruited pilots from as far away as Australia. But what led to the shortage of pilots in the first place? In a bid to slash costs during the COVID pandemic, airlines grounded planes and offered early retirement packages to thousands of senior pilots. Pilots took the early retirement for a variety of reasons. There's 1,000 pilots and may be near 1,000 reasons why. But in general, a pilot may have reached a point in their career where they said, you know what, I'm 62 and I'm feeling it. A halt to training during the pandemic also impacted the pipeline. Training never stops in the airline business. The number one logjam right now at American Airlines is the training pipeline. It has collapsed. A massive amount of training that they didn't do during the pandemic is still an overhang on that system. Carriers have also seen fewer pilots coming from the military, which has faced recruitment issues of its own. The Department of Defense had a shortfall of 3,000 pilots, according to a 2019 report to Congress. The Air Force and its Reserves finished fiscal year 2018, down 2,000 pilots, or roughly 10% of its staffing. The transition to drone pilots is also impacting commercial carriers. The military of today is not just about traditional airplanes and helicopters. They're flying drones and they've got all sorts of other new types of aircraft. Frankly, a lot of the folks from the Air Force Academy now you see more drone pilots than you do commercial pilots. That pipeline has dried up over 40%. So we've got to make up for that from somewhere else. And perhaps the hardest hit segment of the industry is regional carriers like Mesa Airlines, who have seen their ranks poached by higher paying national rivals. As a result of the pilot shortage we have lost scheduled airline service to more than 50 smaller US cities. So a few airlines have already started to cancel flights because they say that they do have a lack of pilots. That's a really big deal, especially in small cities, because those are served by regional airlines and that's where the pilot shortage is the most acute. There are about 164,000 pilots in the U.S. with an airline transport certificate. A senior captain at the helm of a wide body plane flying for a national carrier can make around $400,000 a year. But before reaching that milestone, pilots often spend years flying for regional carriers. A captain at a regional airline starts off making about $100,000 a year. You may be operating anywhere from 4 to 6 flight segments a day, depending on how long they are. You may get as little as 10 hours or so of rest a night, and you may be away from home for 3 to 5 days at a time. It can be very physically grueling. It can be emotionally taxing. A drop in new pilots entering the field means almost half of pilots are approaching the mandatory retirement age of 65. One third of pilots in the U.S. Are in their fifties. Another 13% are between 60 and 64. Some are calling for legislation to increase the retirement age to 67, but not everyone agrees. I don't think the retirement age will get lifted. I also don't think it's the solution at United our age, 64 pilots, 36% of them are unavailable to fly on a given day for sick, long term or short term medical. The medical requirements are really, really stringent for being a pilot. Another possible change would be to reduce the flight time required for a pilot to be certified. Following the crash of Colgan Air Flight 3407 in Buffalo, New York, in 2009 the FAA set new rules for pilots. U.S. regulations require pilots to have 1,500 hours of flight time before being allowed to work at a commercial airline. Those hours can be achieved doing anything from flight instruction to banner towing operations. There are exceptions for some students and military. But critics argue the 1,500 hour rule is costly and puts too high a burden on new pilots. The accessibility to flight experience, the hours and the actual experience is devastating these young aviators. The debate will be whose neck is on the line should an accident occur in the future, where a pilot with less than 1,500 hours of experience is at the controls of an airliner, that crashes. In the meantime, carriers are taking matters into their own hands and moving more of their pilot trading duties in-house. Like Alaska, United opened its Aviate Academy in 2022, offering incoming students financial incentives along with low interest loans. The carrier said it plans to train 5,000 new pilots at its facility by 2030 and hire 10,000 pilots that same year. It's not just United, it's JetBlue, Delta, American, Southwest. They're all looking to now bring some of these things in-house, whereas before they were more used to looking to outside or come when you have experience. Well, right now they need it now. And those programs are welcome news for travelers facing long lines at the airport and flight delays brought about by the acute pilot shortage, which is likely to get worse. North America will need more than 128,000 new pilots over the next two decades. And what the airlines and regional airlines, major airlines are all trying to do, same thing goes for the cargo carriers because they need new pilots as well, is trying to recruit as as young as possible or as early in the careers of a pilot as possible. It's unbelievable that we were able to go up in the sky and do things not a lot of people can do. It's a beautiful feeling.
Info
Channel: CNBC
Views: 387,642
Rating: undefined out of 5
Keywords: CNBC, business, news, finance stock, stock market, news channel, news station, breaking news, us news, world news, cable, cable news, finance news, money, money tips, financial news, Stock market news, stocks, economic reopening, airlines shares, airline stock, airline earnings season, airplanes, united, american airlines, flights, pilot, pilot shortage, alaska airlines, delta airlines, airline mechanics, work shortage, air traffic controllers, airline impact, pilot academy
Id: AiMtcSrE9HA
Channel Id: undefined
Length: 10min 30sec (630 seconds)
Published: Sun Sep 11 2022
Related Videos
Note
Please note that this website is currently a work in progress! Lots of interesting data and statistics to come.