The global pilot shortage is having a direct impact on the European aviation market, according to a white paper by AeroProfessional titled “Grounded before Take-off: EU Regional Pilot Shortage Perspective Two Years On.” The report explains the factors that are contributing to what it calls a global pilot skills crisis and outlines proposed solutions and recommended approaches to combat the issue.
Barriers to entry, carrier impact, future demand, EU workforce migration, and mandatory retirement are among the key factors identified as contributing to the crisis.
The paper was developed in an effort to address key questions for aviation recruiters, operational teams, and executives. It proposes training and hiring practices to keep airlines aloft.
AeroProfessional previously analyzed three barriers contributing to the shortage, including training costs, type ratings, as well as pay and conditions. Further review of those impediments has revealed pilots are generally expected to front their own initial training costs, with AeroProfessional concluding, “cadet schemes and ab initio training remain the preserve of a few major airlines.”
Enhanced educational pathways, however, have aided prospective pilots in securing a career development loan (CDL) or student loan for initial training and type-rating qualifications. AeroProfessional cited alternative training models, such as a modular program offered by Flying Time Aviation, which allows “pilots to achieve a frozen, EASA-issued ATPL within a much-reduced timeframe and at almost half the regular cost.”
Additionally, looming loan repayments for recent graduates along with unsociable working conditions result in costs that AeroProfessional said, “are prohibitive at the outset of a pilot’s career, offering relatively low pay in return for a high level of responsibility. This has led many new pilots to decide against renewing their license after the initial three years. In turn, this has put pressure on carriers to maintain a flow of pilots progressing into the left-hand seat.”
A mid-year report published in June from IATA said airlines are expecting to accelerate hiring over the next 12 months in conjunction with strong growth in traffic and capacity. IATA estimates total employment by airlines will exceed 2.8 million in 2018 representing a 3.4 percent gain compared to 2017.
In the European market, the type of carrier and aircraft flown by a carrier affects the rate at which the skills shortage is felt upon their pilot supply. AeroProfessional said European legacy and flag carriers are likely to be the last to feel the impacts as those carriers traditionally have low attrition rates and offer competitive benefits packages and cadet training programs.
Low-cost carriers that “run streamlined services and are less likely to invest in pilot training will continue to bear the initial brunt of the shortage.” AeroProfessional continued by explaining that regionals losing trainee pilots to low-cost carriers and legacy carriers is problematic because “these airlines tend to have deeper pockets, so they can swoop in and poach staff during their training period, resulting in significant cost and staffing implications.”
As business aviation in the U.S. has proven not to be immune to the pilot shortage, AeroProfessional concluded similarities with the EU market may lead to comparable trends found in the U.S. Blockages in the U.S. pipeline appear to be fostered by increasing competition in corporate flight department hiring and retention strategies, a growing deficit of flight instructors and qualified pilots, and the constant need to attract the next generation of aviators and maintainers.
AeroProfessional expects growing demand in Europe and other markets to worsen the skills crisis. Boeing estimates 95,000 new commercial pilots, equivalent to 5,000 per year, will be required in Europe by 2034. While approximately 4,000 commercial pilot licenses and multi-crew pilot licenses were issued in the EU during 2015, 20 percent of that total was issued to non-residents who will work elsewhere, according to AeroProfessional. As a result, 91 percent of cadets who trained in 2015 were hired by the middle of 2016, “with many cadets invited to an interview before they actually qualified,” said AeroProfessional.
AeroProfessional also identified specific trends contributing to area-specific demand. These trends include the U.S. accounting for roughly 50 percent of all aircraft purchases in 2016 although this balance is expected to shift to China and India during 2018. Industry growth, led by the EU and the U.S., was above expectations for all regions in 2017 and factors preventing growth in emerging markets should continue to ease.
AeroProfessional also found that 48 percent of pilots training in the UK intend to work in other global markets. Asia-Pacific will be a key growth region and domestic markets in China, Japan, and India are expected to continue to strengthen. AeroProfessional concluded these trends signal demand “growing at a rate current training capacity can’t satisfy” and, “coupled with the added pressure of European pilots leaving for other markets, the outlook for the pilot shortage in the EU is far from bright.”
AeroProfessional found EU workforce migration and mandatory retirement to be other key issues contributing to the crisis. A survey of 820 EU pilots, conducted by AeroProfessional, revealed 64.6 percent of the group believed it was a good decision to work outside the EU. Finances and professional development were among the reasons cited for leaving the UK.
Mandatory retirement age remains a quarrelsome issue, and AeroProfessional suggested, “Even if airlines are averse to having older pilots on front-line duty, engaging them in a training and or mentoring capacity could be an effective way of retaining their skills and experience in the industry, and utilizing them to full effect. Stopping the outflow of both disgruntled pilots and unwilling retirees with skills and experience would be an effective quick-fix for addressing the skills crisis.”
At the conclusion of the white paper, AeroProfessional provided suggested solutions to address the crisis. Recommendations included improvement of pathways from education to industry, introduction of civilian pilot training programs, revision of mandatory-age legislation, increased airline-funded training and cadet schemes, re-training aviators from other industries, and expansion of multi-crew pilot license usage. The company recommended these solutions in an earlier white paper, but adoption has been slow, said AeroProfessional.
More cost-effective and convenient training options, enhanced inclusion and diversity in the workforce, improved remuneration, and partnerships among aviation companies are recommended approaches in the most recent AeroProfessional report.
In conclusion, the white paper reiterates the crucial need for further investment in pilot training to allow airlines to survive in a competitive market. A call to action at the end of the report explained, “Now is the time for aviation companies, industry regulators, and training bodies to go beyond convention and solve this crisis to ensure continuous industry growth. However, no one company or agency can solve the pilot skills crisis alone.”