Career Pilot

Industry News

Industry news is more important to career development and the job search than many aspiring career pilots realize. What new regulations that could affect your career lurk just over the horizon? A proposal is pending, for example, that could eliminate the longstanding FAA regulation that required airline pilots to leave the cockpit when they turn 60.

Which airline is thinking about buying another carrier? That could affect you directly if you work for the acquired carrier. Who is ordering new airplanes? If new aircraft are an addition to the carrier’s existing fleet, it will have to hire more pilots to fly them. How is the industry—and individual airlines—doing financially? While a company’s financial situation can change over time, you should know how an airline stands when you apply.

Aviation industry to take flight again, analyst says

The turmoil surrounding the aviation industry is finally expected to calm, consulting firm Frost & Sullivan said at the Singapore Airshow on Jan. 31. According to Cheong Chern Wai, the firm’s Asia Pacific research analyst of aerospace and defense, passenger traffic statistics show a significant decline across the globe, with 2 percent growth in 2008 against a high of 8 percent growth in 2007. “The first half of 2009 saw traffic declined even further, bringing a negative growth to the industry. As the economy began its slow ascent to recovery, passenger traffic also followed the same path to recovery, with the fourth quarter showing much improved growth.” The first regions to show positive signs of recovery were the Middle East, Latin America, and Asia Pacific, he said. Moving into 2010, airlines will continue to tread carefully, looking at profitable routes and reorganizing their network to drive growth in their business. “The important role of low-cost carriers has contributed to the growth of passenger traffic, especially in Asia Pacific, and is expected to be the pillar in pushing the aviation industry forward,” says Cheong.

[ POSTED FEBRUARY 2, 2010 ]

Flight Options pilots to vote on contract

The Teamsters Airline Division said Feb. 1 that it has reached a tentative agreement for a first pilot contract with Flight Options, LLC, the Cleveland-based provider of luxury business jet fractional ownership and charter programs. More than 500 Flight Options pilots, represented by Teamsters Local 1108 in Gahanna, Ohio, will vote on the proposed contract in March. The tentative agreement includes across-the-board pay increases for every pilot, longevity-based salary increases, scope and job security protections, additional paid time off, overtime provisions, an expanded crew basing system, and health insurance security, the union said.

[ POSTED FEBRUARY 2, 2010 ]

Horizon Air pilots ask for mediation

The union representing Horizon Air pilots petitioned the National Mediation Board on Jan. 28 to help conclude contract negotiations with Horizon Air and the carrier’s parent company, Alaska Air Group. “Four years of negotiations is more than enough time to reach an agreement that provides just compensation and fair work rules,” said Capt. David Bourne, Teamsters Airline Division director. “While the Alaska Air Group enjoys record profits, it has adamantly refused to share even a modest portion of those profits” with its pilots, Bourne said. “Instead, the carrier seeks concessions from its pilots, which devalues the flight deck experience and talent that allows the company to make its profits.”

[ POSTED FEBRUARY 2, 2010 ]

Continental, AirTran add routes

Continental Airlines announced Jan. 29 that it will increase its schedule of flights between Newark Liberty International Airport and London/Heathrow during 2010. The airline will add a fourth daily round-trip flight to the route in March and a fifth in October; including twice-daily service from Houston, these will bring to seven the airline’s daily departures to Heathrow. Continental also announced nonstop service between Cleveland and Green Bay, Wis., and Norfolk, Va., beginning May 2; the Continental Express service will use 50-seat Embraer regional jets. AirTran Airways announced Jan. 28 that it will begin new nonstop service between Grand Rapids, Mich., and its hubs at Baltimore/Washington and Orlando international airports.

[ POSTED FEBRUARY 2, 2010 ]

Boeing provides first look at 787 stall tests

Test pilots have conducted the first stall tests of the 787 Dreamliner as part of the initial airworthiness program for the airplane, Boeing announced Jan. 29. The testing went “very well and there were no surprises,” said 787 Chief Pilot Mike Carriker. Highlights and an interview with Carriker are featured in a three-minute video on a new 787 flight test Web site. Additional stall tests will take place throughout the flight test period.

[ POSTED FEBRUARY 2, 2010 ]

Delta to update aircraft instead of buying new

Delta Air Lines announced Jan. 25 that it will invest $1 billion, or about $300 million per year, through mid-2013 to improve its customers’ experience. “Rather than invest in new aircraft, Delta will be spending its capital to improve the quality and consistency of the on-board product and efficiency of the aircraft we already own,” said Ed Bastian, Delta’s president. Delta said it would install winglets on more than 170 Boeing 767-300ER, 757-200, and 737-800 aircraft to extend aircraft range and improve fuel efficiency by as much as five percent. It will complete the modification of 269 pre-merger Northwest aircraft, enhancing cabin amenities; add First Class cabins to 66 CRJ-700 aircraft operated by Delta Connection carriers; install full flat-bed seats in BusinessElite class on 90 trans-oceanic aircraft; and add in-seat audio and video on demand throughout Economy Class on 16 Boeing 747-400 and 52 Boeing 767-300ER aircraft.

[ POSTED JANUARY 26, 2010 ]

Eagle to launch seasonal Myrtle Beach service

American Eagle Airlines will begin nonstop seasonal jet service between Myrtle Beach (S.C.) International Airport and Dallas/Fort Worth International Airport beginning April 6, the regional affiliate of American Airlines announced Jan. 25. Eagle will operate the service through Oct. 31, using 44-seat Embraer ERJ-140 jets. The seasonal service recognizes Myrtle Beach’s popularity as a recreational destination, noted Gary Foss, vice president of planning and marketing for the AMR Regional Network. American Eagle also announced that nonstop daily jet service between Dallas/Fort Worth and two destinations in South Dakota—Sioux Falls and Rapid City—would begin April 6. The year-round service will be operated with 50-seat Embraer ERJ-145 jets. American and American Eagle operate approximately 745 daily departures from Dallas/Fort Worth to nearly 160 destinations.

[ POSTED JANUARY 26, 2010 ]

Delta expands business-jet operations

Delta Air Lines announced Jan. 21 that its wholly owned subsidiary, Delta AirElite, has acquired Kinston, N.C.-based Segrave Aviation, a charter service specializing in wholesale charter aviation services, private aircraft management, aircraft maintenance and fixed base operations. The transaction will double the size of the Delta AirElite fleet, and improve Web-based booking and the travel experience for fleet membership card and charter customers, said Delta, the only U.S.-based carrier with commercial and private jet service. Delta AirElite, which operates a fleet of owned and managed aircraft, was established in 1984 and is based in Cincinnati.

[ POSTED JANUARY 26, 2010 ]

Aviation industry aiding Haitian relief efforts

Members of the UPS pilots’ union, the Independent Pilots Association, are volunteering to crew Haitian relief flights without pay. “This is not the first time our members have stepped up and volunteered their services to move aid to a disaster area,” said Capt. Robert Thrush, IPA president, explaining that in 2005, more than 500 crewmembers volunteered to crew relief flights in the aftermath of Hurricane Katrina. As of Jan. 18, Miami-based Amerijet International had operated nine flights to Haiti for various organizations and was planning to operate additional flights daily; Amerijet also is collecting rice, dried beans, and tents to assist with the relief efforts. Lynden Air Cargo has used its Lockheed L100-30 Hercules aircraft to fly rescue vehicles, portable kitchens, and other relief supplies to Port-au-Prince; National Airlines and other cargo operators also have delivered aid. Deutsche Post DHL sent a disaster response team to help manage airport logistics in cooperation with the United Nations. Several American Eagle flights have delivered supplies to the beleaguered nation, and many airlines are encouraging customers to donate frequent flier miles to support relief efforts.

[ POSTED JANUARY 19, 2010 ]

Boeing 787 Dreamliner completes initial airworthiness testing

Boeing announced Jan. 15 that it has completed initial airworthiness testing on the 787 Dreamliner. This clears flight testing of the airplane to expand, with more crew members taking part in flights and allowing more airplanes to join the flight test program, Boeing said. Since the first flight in mid-December, the program has completed 15 flights totaling nearly 60 flight hours, climbing as high as 30,000 feet and flying as fast as Mach 0.65. Initial stall tests and other dynamic maneuvers also have been conducted by the six pilots flying the Dreamliner to date.

[ POSTED JANUARY 19, 2010 ]

Continental fleet changes costly

Continental Airlines announced Jan. 18 that it expects to record special charges related to aircraft of $36 million during the fourth quarter of 2009, including a $23 million reduction in the value of certain 737-300 and 737-500 aircraft and spare parts. Continental announced in June 2008 that it would retire all of its less-efficient Boeing 737-300 aircraft and a significant portion of its Boeing 737-500 fleet by the end of 2009, but the value of those aircraft declined more than expected, primarily because additional 737s were grounded by other airlines. Continental has continued to take delivery of more efficient 737-900 aircraft, but overall its 737 fleet contained 33 fewer aircraft in December 2009 than it did in June 2008. The airline also lost $13 million on the sublease of eight Embraer EMB-145 aircraft.

[ POSTED JANUARY 19, 2010 ]

Despite tough economy, Boeing delivers 481 jets

Boeing said that it delivered 481 commercial airplanes during 2009, a number that was in line with the company’s expectations of 480 to 485 airplanes. The Next-Generation 737 comprised most of those aircraft, with 372 deliveries. Boeing also delivered 88 777s, 13 767s, and eight 747s. The company said that the global recession was an oppressive market reality in 2009, driving many carriers to reevaluate their near- and medium-term fleet requirements. Nevertheless, Boeing Commercial Airplanes reported a strong backlog of 3,375 airplane orders. In addition, first deliveries of both the 787 Dreamliner and 747-8 Freighter are scheduled for the fourth quarter of 2010.

[ POSTED JANUARY 12, 2010 ]

Virgin America clears regulatory hurdle

The U.S. Department of Transportation on Jan. 8 confirmed that Virgin America’s proposed new ownership structure complies with U.S. laws requiring that domestic airlines remain under the control of U.S. citizens; no more than 25 percent of voting stock can be held by foreign nationals. The proposed structure reflects a change among Virgin America’s U.S. investors and allows employees to participate in the airline’s financial future. U.S.-based VAI Partners, LLC will continue to hold 75 percent of the airline’s voting stock, although the U.S. investors comprising VAI Partners will change. Cyrus Aviation Investor, LLC will increase its stake in the partnership to 55.5 percent; VAI MBO Investors, LLC—comprised of five individuals—will own 27.8 percent; and 16.7 percent will be held for distribution to employees at an initial public offering of company shares. Virgin Group holds the remaining 25 percent of voting shares. The proposed transaction will provide Virgin America with an additional $68.4 million in capital.

[ POSTED JANUARY 12, 2010 ]

Improving consumer confidence driving passenger growth

Last year was one of the worst for the airline industry, with financials for most airlines throughout the world in the red, according to Frost and Sullivan. Only in the third quarter of 2009 were there visible beginnings of some passenger airlines returning to the profit zone—a period that saw some legacy carriers turning profits while low-cost carriers posted losses, the company said. Air cargo carriers have seen revenue reductions of as much as 20 to 25 percent. Profit figures quoted by some Chinese airlines for the third quarter resulted from government economic stimulus activity, said Soumyajyoti Basu, Frost and Sullivan’s Asia Pacific consultant for aerospace and defense. “This trend is set to continue going into 2010. However, airlines come late in the business cycle. Hence, as the world comes out of the recession, the airlines industry will follow with a lag of a few quarters. The downside risk of a double-dip U.S. recession affecting the airlines sector is less pronounced.” He said the airline industry’s outlook for 2010 is one of restrained optimism, with the strongest growth in the Asia Pacific region.

[ POSTED JANUARY 12, 2010 ]