Private Aviation Faces Intensified Pilot Shortage After Salary Hikes by Major Airlines

The private aviation industry is grappling with an intensified pilot shortage, further exacerbated by recent salary increments at major commercial airlines like Delta, United, and American Airlines. These hikes, coupled with lucrative signing bonuses, have made private aviation salaries pale in comparison, often reaching only 60% of what commercial pilots earn over a three-decade career.

Sheryl Barden, CEO of Aviation Personnel International, notes the allure of higher salaries in commercial airlines, leading to an exodus of experienced pilots from top corporate positions, a trend further compounded by the pandemic. The premature retirement of a significant number of pilots during the COVID-19 crisis has left a void in the industry, pulling many private aviation pilots towards commercial ventures.

This shortage has impacted various stakeholders, from small charter businesses to leading fractional providers like NetJets. Over 7% of NetJets’ 3,100 pilots have reportedly left the company between January and September, with another 100 expected to depart by the end of the year. The ongoing negotiations for a new contract aim to make NetJets’ compensation and scheduling more competitive.

Addressing this disparity is an expensive affair. According to a National Business Aviation Association survey, pilot salaries in the private sector rose by 12% from 2022 to 2023, with retention bonuses averaging around $27,000 annually. Kenn Ricci, principal of Directional Aviation Capital (parent of Flexjet), mentions that they had to invest $30 million to increase pilot salaries to remain market competitive.

To ensure quality service despite the shortage, Anthony Tivnan, president of Magellan Jets, advises clients to research operators’ pilot-retention statistics. Similarly, Dondi Pangalangan emphasizes the importance of safety protocols, suggesting it reflects how much an operator values its pilots.

Some companies, like Verijet, prioritize pilot satisfaction. They’ve seen growth, from having two aircraft in 2020 to 20 in 2023, and still have a waiting list for pilot training. Tradewind Aviation, on the other hand, has positioned itself as a stepping stone for pilots, partnering with United’s Aviate pilot-development program.

However, these measures are merely temporary solutions to a long-term challenge. Eric Zipkin of Tradewind Aviation believes the ongoing shortage is an operational issue and addressing it requires consistent, incremental efforts.

Sources: AirGuide Business airguide.info, bing.com, robbreport.com