Air Line Pilots Association (ALPA) president Tim Canoll warned against what he called “atypical employment practices” now being used by some European ultra low-cost carriers. These practices include employing pilots as independent contractors, rather than employees bound by a contract. This model allows greater flexibility for the airline, but could threaten safety by not giving pilots the authority to report safety violations, Canoll said here, speaking at the Phoenix International Aviation Symposium.
These practices are a “labor restructuring,” Canoll said, and this informs ALPA’s objections to Norwegian Air International’s (NAI) plans to operate to the US with an Irish air operator certificate, with crews sourced from the European Union, the US and possibly Asia. NAI is not itself a threat—it is too small, Canoll said. However, its employment practices could be the “nose of the camel,” and could augur a change in the way airlines employ pilots. NAI’s model, which he likened to the flag of convenience model that destroyed the US maritime industry, could fundamentally change the US industry, he said. The three Persian Gulf carriers—Emirates Airline, Etihad Airways and Qatar Airways—are structured similarly and are more of a threat, given their size and reach, he added.
Turning to the US industry, Canoll dismissed the notion that there is a pilot shortage for now.
Instead, the issue is that entry-level pilot compensation is too low. The costs of training to be a commercial pilot far outweigh initial compensation, and would-be pilots are “doing the math” and opting not to enter the industry. “If it does not make financial sense to your or your family, you won’t do it,” he said.
Although he said there is no pilot shortage now, Canoll noted that there will be a pilot shortage if enough people opt not to enter the industry, which could be a real problem in a few years, he said. The industry needs to create a more guaranteed career path to ensure pilots starting at regional airlines can move to a mainline airline quickly, added Randy Babbit, Southwest Airlines SVP-labor relations.
Pilot shortages and the fear of atypical business models are not the only issues facing the airline industry. The US industry is hamstrung by its inability to recruit talent globally, due to laws restricting the number of foreign nationals in management positions, Michael Bell, a consultant with Spencer Stuart’s global aviation practice, said.
Second, the US airline industry tends to recruit senior management from other airlines, rather than looking outside of the industry. This hampers innovation, Bell said. Innovations, such as ultra low-cost-carriers, unbundling, and ancillary revenues came from abroad, partially because of more creative hiring by foreign airlines, Bell said, pointing to Air New Zealand CEO Christopher Luxon, Ryanair CEO Michael O’Leary and Air Asia Group CEO Tony Fernandes as prominent examples of managers without much prior airline industry experience.
Bell also noted that senior management in the US tends to be male. “We are not doing ourselves any favors by restricting ourselves to U.S. nationals and only half the population,” he said.
(Madhu Unnikrishnan - ATWOnline News)
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