Wednesday, January 18, 2017

Flying Cheap - Professionalism in The Aviation Industry


In class, you watched a documentary called "Flying Cheap".  This documentary is about the regional airline industry, focusing on two aspects. First, there is a discussion of the Colgan accident and factors that may have contributed to the accident. Second, the documentary presents information about the career of a regional pilot.

Please address the following topics in this blog:


**First, address the state of the regional airline industry. There is a lot of "buzz" about the possible pilot shortage. There are two sides to the argument: 1) There is not a pilot shortage. The problem is pilot pay. There are plenty of people who want to be pilots in the United States but are unwilling to fly domestically because of low wages, and 2) The pilot shortage is real and based upon projected retirements and the current number of new pilots entering the industry. Which side do you believe and why? To answer this question thoroughly, you must research and provide evidence of research of both sides of the issue. 

The current state of the regional airline industry is one of increasing panic and frenzy as many regional carriers are scrambling to find eligible pilots to staff their aircraft. The source of this warranted panic stems from the retirement age of 65 coupled with the fact that many pilots do not wish to fly for regional carriers due to the poor pay, the ridiculous number of hours one must fly to earn a decent paycheck, and the absurd scheduling.

To explain my perspective on this topic, I will begin with argument one, which states that there is no pilot shortage, but the problem lies in pilot pay. Considering the Colgan Air accident in 2009, the ‘1500 hour’ rule was implemented by the FAA to ensure pilots were truly ready for the airline experience and its endeavors. Consequently, the increase in requirements have made an already expensive profession more expensive due to the increased training and flight hours. Aspiring pilots aiming for a career in the regional and/or major airlines must pay approximately $150,000 to attain the adequate training to have a chance to become employed for a regional or major air carrier (Fitzpatrick 2016). Subsequently, such a significant financial burden often hinders many aspiring pilots, preventing them from ever achieving their career goal of flying for an airline. The pilots that can secure the proper funding do not see the point of flying for a regional airline for low-pay because the ends do not justify the means of doing so (i.e. the $27,000 salary plus a potential signing bonus is not worth the $150,000 of debt-financing).

The poor pilot pay is not the only reason as to why pilots are unwilling to fly for the regional airlines in the United States; the lack of benefits and inadequate feeling stemming from improper compensation for their duty are two additional reasons pilots are fed up with regional air carriers. Per Fitzpatrick (2016), the current average First Officer (FO) salary is approximately $27,350, which is a significant increase from the 2008 salary of $16,000. Despite the pilot pay increasing by $11,000 in nine years, many pilots in the United States are still unwilling to fly domestically because they strongly believe their compensation does not correlate with the significance of their responsibilities as a pilot. According to Fitzpatrick (2016), Daniel Rose, who is an aviation lawyer and former U.S. Navy pilot stated, “It’s incredible you can still have a job where you’re flying 50 people around and you’re responsible for their lives and you’re getting paid $20,000 with lousy hours and minimal to none in terms of benefits.”

Thus, underappreciated, under-paid, and poor benefits may be underlying reasons as to why there are plenty of people who want to be pilots in the United States, but are unwilling to fly domestically. The previously mentioned factors are extremely important and poor pilot pay is a growing problem in the regional industry that needs to be addressed. I believe that at the end of the day pilots are less likely to quit their job, but when push comes to shove (financially), sometimes the best option is to leave (maybe the airline and/or industry itself for higher pay), despite the strong need/want to gain flight hours and experience to advance to the major airlines. Ergo, I personally believe that both factors outlined in the question above play a critical role in the problem facing the regional airline industry, however, having to choose one over the other, I feel the most prevalent issue is that there are plenty of people who want to be pilots in the United States, but are unwilling to fly domestically because of the poor treatment from regional carriers.

In regards to argument two, which states the pilot shortage is real and is primarily a result of projected retirement age of 65. As stated earlier, I do not believe the true issue creating the buzz within the regional industry is due to a pilot shortage stemming from the retirement requirement, but rather from the current pilots leaving. The current estimated pilot deficit will be about 15,000 by year 2026, because of current pilots reaching the mandatory retirement age of 65 and individuals choosing to pursue careers outside of aviation (Sasso & Schlangenstein 2016). This equates to 1,500, which is the number of pilots needed to be acquired each year to combat the estimated deficit. The average number of pilots the major U.S. airlines hired in 2016 was 5,000, which was done in efforts to replace those retiring in addition to support airlines expanding (Sasso & Schlangenstein 2016). Although the pilot shortage is an indefinite cause for concern within the regional airline industry, it is not a major concern right now as it is projected to be nine years out. Therefore, the regional airline industry should focus on their retention rate and appeal to their current pilots in efforts to get ahead of the future shortage as opposed to continuing to lose pilots now due to voluntary resignation AND retirement.

**Second, with the new regulations, regional airlines may be concerned with their hiring pool. Why? What do you see as possible solutions - both for aspiring pilots and for the regional airlines themselves?

The regional airlines should be concerned with their hiring pool for two reasons: 1. The implementation of the 1,500-hour rule resulting from the Colgan Air accident in 2009 and; 2. The low-wages paid to regional airline pilots (especially First Officers).

With the new regulations, primarily the implementation of the ‘1500 hour’ rule requiring pilots wanting to fly for the regional and/or major airlines, to accumulate 1,500 hours and their ATP, or 1,000 hours and a four-year aviation-related degree (i.e. R-ATP) to gain employment, is and should be a major concern to regional airlines. I believe this constitutes a major concern for the regional airlines because the regulatory increase of hours subsequently raised the already expensive cost to earn those hours, especially for the student-pilots earning a flight science degree at a four-year university. Although these students only need to acquire 1,000 hours to be eligible for a R-ATP, these 1,000 hours are significantly more expensive. Flight training alone can amount to anywhere from $50,000 to $64,000 depending on which university you attend (i.e. in- or out-of-state) (Aviation Week & Space Technology 2015). This enormous cost coupled with that of tuition, room and board, textbooks, and other associated expenditures can equate to approximately $105,000 for a student to attain a flight degree from a four-year university (Sasso & Schlangenstein 2016). $100,000 is not chump-change and is an extreme financially burden for most families this day in age; to acquire these funds, most students opt to take student loans, which can also be a risk if not all the funds can be acquired. This often leads to students not being able to earn the ratings outlined by the curriculum, subsequently resulting in prolonged graduation, increased debt, and severe discouragement. When considering the financial endeavors of pursuing a flight/commercial aviation degree and/or hitting a financial roadblock (e.g. failing to acquire a loan for training), aspiring student-aviators tend to cut their losses and pursue a different career path, which is becoming an increasing trend as training related costs and tuition continue to increase at a significant rate. As a consequent result, the regional airlines are witnessing their once overflowing hiring pool dwindle expeditiously.

As I elaborated upon this topic in the previous question, the low-wages paid to regional pilots is an ever-growing problem that is catching up to the regional air carriers. Implementing low-wages may seem as a cost-effective measure to the managerial staff now, but it will cause their air carriers to lose more money than they can make since they won’t have enough pilots to fly their aircraft. Student-pilots earning their four-year degree to attain a R-ATP so they can become employed at a regional carrier are becoming more cognizant of the fact the regional industry is not what it seems. As they become closer to graduation and/or the required hours, they are realizing that the average salary of $27,000 (excluding sign-on bonuses) for a First Officer is not ideal for someone with a Bachelor’s degree and a moderate amount of experience (Fitzpatrick 2016). After taking on anywhere from $50,000 to $100,000 of debt to earn their degree and obtain employment in their field, $27,000 is not very appealing to a recent graduate; such a low salary does not allow one to be self-sufficient nor does it provide decent compensation to pay back loans. Knowing about the low-pay, minimal benefits (if any), and varying scheduling, many student- and would be pilots opt of the industry entirely or prolong their commitment as they search for additional funds and/or other aviation-related opportunities. Subsequently, the regional airlines are experiencing a ‘drought’ in their hiring pool as many individuals determine that a $27,000/year salary is not sufficient for them to live off post-graduation.

A possible solution for aspiring aviators would be to earn their certifications and flight hours through a Part 61 flight training company and earn a degree in a different major (i.e. do them separately), as opposed to conducting their training through a university (i.e. Part 141). I view this as a viable solution because it is ultimately tens of thousands of dollars cheaper than a Part 141 training school/university. Furthermore, by separating the two into their own entities, you not only save money through the Part 61 company (as their rates are significantly cheaper), but students save money on their education (in terms of tuition costs) and can explore other interests and degree options as well. As I am currently pursuing this option myself, I have found it to be more beneficial to my growth as I have become more knowledgeable in pertinent aspects of life (e.g. business/finances, managerial and soft skills, etc.)

I believe there are two possible solutions to this problem/concern that the regional air carriers themselves can implement. The first of those two solutions, which many regional airlines are currently doing, would be to offer signing bonuses and tuition reimbursement. To combat and deter the negative stigma of the compensation offered by the regional air carriers, they have steadily increased the amounts of the signing bonuses and/or tuition reimbursement. Recently, Envoy, Piedmont, and PSA airlines increased their signing bonuses to $15,000, while Endeavor’s maximum bonus offered is $23,000 (Sasso & Schlangenstein 2016). By offering such a hefty signing bonus, the appeal of the regional air carriers has increased in the eyes of aspiring pilots as it compensates for the low-wages paid to regional pilots. Using signing bonuses and/or tuition reimbursement options, the average first-year pay is raised from $27,000/year to $35,000, and $47,000 (maximum) at prestigious regional airlines like Endeavor (Sasso & Schlangenstein 2016). By offering more money up front, I believe regional air carriers will increase their reputation, combat the negative low-wage stigma, and slowly attract pilots, resulting in an increase of their hiring pool.

The second possible solution to this problem, and probably the easiest, would be to merely increase the first-year base pay for pilots in addition to increasing the benefits offered to employees. Akin to the previous option, increasing the salary of these first-year pilots will indefinitely attract individuals and increase the size of the hiring pool. A $15,000 singing bonus, which is a one-time lump-sum (or is distributed in an employee’s paycheck over 12-24 months), does not amount to much after taxes and other garnishments albeit it may seem like a ‘gold-mine’ to young, recent graduates. Those individuals that realize how minute the signing bonus is are not truly won over by its presence and instead, opt for a different airline or aspect of the industry (e.g. business or general aviation). Ergo, I believe the regional airlines need to increase the overall base salary to a minimum of $35,000-$37,000 to ultimately re-establish a positive reputation (in the eyes of the public and aviators) and increase their hiring pool.

**Third, ALPA represents most regional pilots. Which organization represents the remainder of the industry, such as management, manufacturers, etc. 

The organization(s) that represents the remainder of the industry, such as management, manufacturers, etc., is the American Association of Airport Executives (AAAE). The AAAE is an organization that represents thousands of airport management personnel and whose primary goal is to assist airports, management, and in some cases, manufacturers, in fulfilling their responsibilities. An additional organization that represents and supports management and manufacturers is the Airports Council International (ACI). Their purpose is to promote cooperation among airports and other aviation partners, including governments (managements), manufacturers, and other aspects of the industry, to ensure safe, secure, and efficient air transport (Florida Department of Transport [FDOT], 2016).

**Forth, keeping the documentary in mind, please answer the following questions:


-I proposed that one theme in the events that led up to the Colgan accident was the lack of professionalism.  Answer the following three questions related to professionalism:


    * 1) Define professionalism in your own words.
           
            I define professionalism as the actions and/or behaviors exhibited by an individual in an exemplary manner, of which denotes their morals/standards, sense of respect and safety (for them-self and others), integrity, and level of knowledge pertaining to their profession, especially when operating in a business, or otherwise professional setting.

    * 2) List two ways in which lack of professionalism was demonstrated in this documentary. Remember: Both pilots and management can lack professionalism.

Four ways in which a lack of professionalism was demonstrated in this documentary are as follows:
1.     The Captain’s inappropriate responses to the wheel-shaker and stick-pusher, in which he was supposed to push (forward) on the respective controls, but instead he pulled back on the wheel and stick pusher, respectively, which further slowed the speed of the aircraft. Additionally, the First Officer (FO) decided to put the flaps up (without the consent or knowledge of the Captain), which placed the aircraft into a stall, and subsequent spin and crash.

2.     The FO made the conscious decision to perform in the capacity of a pilot despite the fact she was sick, clearly under the weather (as noted by the Captain and other crew members), fatigued, and/or otherwise not able to perform her flight duties at 100%. Therefore, the FO chose to exercise the rights of her certificate even though she was cognizant of the fact she was not fit to fly.

3.     Colgan Air management initially hired the Captain, Marvin Renslow, even though he only accumulated approximately 600 hours of total flight time, which is less than half the time required or recommended by most the major airlines. Furthermore, Colgan Air management failed to thoroughly vet the Captain record/flight background (and presumably other candidates), which caused them to not discover or become cognizant of two of the Captain’s failed check-rides (he had four total).

4.     The Vice President of Colgan Air Operations called Chris Wiken, a former Colgan Air pilot, and informed him that if he claimed fatigue (due to working several 16-hour days in a row) he would be stuck at the airport he was at for the night. To persuade the pilot to not claim fatigue, the VP of Operations offered to shorten his duty by altering his time card to read that he began working at 0600 as opposed to 0540, which would give the pilot 20 additional minutes to catch a flight back to his home base. In other words, the VP of Operations offered to falsify the pilot’s records to make it appear as if he worked a legal duty day although exceeded the legal working requirements for a crew member. Offering to falsify the records of an employee (or anyone) to abide by the FAA regulations is an extreme and blatant exhibition of a lack of professionalism. Furthermore, this severe lack of professionalism was exhibited by a high-ranking member of Colgan Air management, which only makes the instance worse.

    * 3) Do you feel that first year pilot pay and/or the compensation structure of a regional airline is a contributing factor in the lack of professionalism demonstrated in the documentary?

I strongly believe the first-year pilot pay and the compensation structure in its entirety of a regional airline was one of the contributing factors in the lack of professionalism demonstrated in this documentary. I can say this with confidence because the FO, Rebecca Shaw, was a prime example of how poor the first-year pay was and the sacrifices she made to ensure she made as much money as possible. The FO made less than $16,000 during her first year with Colgan Air in 2008, which is equivalent to the average salary of a full-time associate working for a fast-food restaurant (e.g. McDonalds).

As a result of the extremely low first-year pay, most FO’s opted to commute to work even if they lived out if state and/or sleep in the crew rooms (when able) to reduce expenditures, including the FO, Rebecca Shaw. In the case of the FO, who lived in Seattle, WA, commuting across the country for a flight and sleeping on aircraft, in crew rooms, or couches/crash-pads does not constitute for adequate and/or qualitative (i.e. restful sleep). Consequently, a lack of qualitative sleep can cause adverse health effects, primarily manifesting in the forms of fatigue and illness. Due to these FO’s being paid poorly, many of them have no choice but to commute out of state and sleep wherever, whenever, and however as they cannot afford to pay for hotels or call-in sick (i.e. lose money). This was especially evident in the case of Rebecca Shaw as it was noted in the Cockpit Voice Recorder (CVR) transcripts that she mentioned the costs of staying in a hotel until she felt better if she were to call-in sick.

Therefore, the FO’s decision to perform in the capacity of a pilot despite the fact she did not receive adequate rest the night before (since she spent the previous day commuting from Seattle), was experiencing symptoms of fatigue (denoted by the yawns on the CVR), and was under the weather (i.e. not fit to fly), demonstrate a significant lack of professionalism on her behalf. Albeit the FO was clearly in the wrong for deciding to fly despite not being ‘fit’ to do so, I also feel as if Colgan Air exhibited an equal lack of professionalism with their severely low first-year pay-scale and overall compensation structure. Implementing such a low pay scale indirectly pressures and negatively influences pilots, especially FO’s, such as Rebecca Shaw, to fly and avoid calling-in as much as possible regardless of their health, well-being, safety, and location. This indirect pressure stems from the fact that the fewer pilots that are flying means less aircraft are being operated (i.e. “less rigs being move”), less passengers are traveling, and less revenue is being generated by Colgan Air, who then has the option to cut costs (such as pilot staffing) to save money. Thus, I strongly believe the blatant direct and oblique disregard of employee health and safety, whose consequent fatigue and impaired decision-making can adversely affect the customers constitutes a severe lack of professionalism exhibited by Colgan Air.

Furthermore, I feel that the first-year pilot pay and the compensation structure in its entirety of a regional airline was one of the contributing factors in the lack of professionalism demonstrated in this documentary. I strongly feel this way because the poor first-year and compensation structure forces pilots to make unethical and poor decisions, of which demonstrate a lack of professionalism (in one form or another) they would not normally make if it were not for the financial stress. Consequently, these decisions, to fly while ill and/or fatigues jeopardize their safety and the safety of others, but are still made because if they miss work they lose money, which they cannot afford to do since they already do NOT make ENOUGH!

    * 4) List two specific ways you plan on maintain and expand your level of professionalism once you are employed in the job that you listed in 1). These ways must be independent of the requirements of the job.
                       
Two specific ways I plan to maintain and expand my level of professionalism once I become employed in the job/career I previously listed in the personal introduction post are as follows:

1. Treat others the way I would expect to be treated while operating in a professional setting, regarding the areas of morals/beliefs, safety, and respect.

2. Attain a mentor (e.g. a Captain or someone akin to such position) within the company so that I may learn from both their personal and professional mistakes and experiences in efforts to not only exceed their level of professionalism, but to also surpass the company expectation of employee professionalism.




References

Aviation Week & Space Technology. (2015). The coming U.S. pilot shortage is real. Aviation Week Network. Retrieved from http://m.aviationweek.com/commercial-aviation/coming-us-pilot-shortage-real
Fitzpatrick, A. (2016). Here’s the major crisis the airlines are facing now. Business Aviation. Retrieved from http://time.com/4257940/pilot-shortage/
Florida Department of Transportation (FDOT). (2016). Aviation professional organizations. Florida Department of Transportation. Retrieved from http://www.fdot.gov/aviation/organizations.shtm
Sasso, M., & Schlangenstein, M. (2016). Shrinking pool of future pilots keeps major airlines on edge. Bloomberg. Retrieved from https://www.bloomberg.com/news/articles/2016-06-29/shrinking-pool-of-future-pilots-keeps-major-airlines-on-edge

3 comments:

  1. Hello there!

    I do agree with your statement that a low pay wage could contribute to a lack of professionalism. I believe that airlines should be able to compensate employees in a way where they are not so cash strapped that they have to make unprofessional decisions. It is not just the pay. Maybe these regionals should have offered paid sick days, so that pilots did not have to work while being sick just so that they won't lose money.

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  3. Theo, I have no idea where to begin in this long book of yours. First of all, your sources were great and you seemed to get a lot of quality information from them. Some of the stats are quite surprising, and I don't think it surprises anyone that pilots chose not to get paid such bad wages. Especially after all their hard work and building hours, a FO job paying under $30,000 is much of a reward for your hard work at all. I also like the points you made on professionalism. It is crucial to treat others the way you want to be treated, otherwise, you will not the the respect you want. This, along with finding a mentor, whether it be in the industry or not. If you have a good role model, and have learned how to do things the correct way and not cut any corners, you are setting yourself up for a successful career.

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