Dollars and Sense

November 3, 2024

THE OTHER DAY I flew an overtime trip. It was four days long. I spent the morning of day one at home, departing in the afternoon. I was on the road for the next two days, then home again by 6 p.m. on day four.

Over that span, I earned more money than I earned in an entire year at my first airline job.

You read correctly: I made in four days what I made in twelve months flying for Northwest Airlink in 1990. That’s not an exaggeration.

Neither is it a boast, or a humblebrag, or a means of suggesting pilots at the major carriers are overpaid. What it underscores, instead, is just how awful it was to work at the regional airlines in the 1990s. Starting salaries were typically under $15,000 a year, and many regionals required pilots to pay for their own training.

The early ’90s were a long time ago, sure. But not that long ago. You can adjust for inflation all you want; the pay was ridiculous, with hostile working conditions to boot.

Luckily that’s not true anymore. The changes were a long time coming, but they came. The prospect of slogging it out for poverty-level wages at shitty companies drove thousands out of the business and scared away an entire generation of would-be aviators. A pilot shortage (surprise!) eventually left the regionals with no choice but to vastly improve pay and benefits.

And so, today, even entry level flyers can make six-figure incomes.

The justification for the lousy pay was always one of thin margins. The regionals made so little, we were told, they simply couldn’t afford to pay their workers beyond a bare minimum. Except now they somehow can, even as airfares have come down. Makes you think.

Salaries at the majors are much improved also, at least compared to the doldrums of the early 2000s. When I came back from furlough in 2007, after five years on the street, sixth-year pay on a Boeing 767 was just over $80 per flight hour (figure 75 or 80 pay-hours in a month). Nowadays you can earn that much flying copilot on a regional jet.

Those of you who remember my column on the website Salon, which ran from 2002 until 2012, will recall my frequent griping about how little pilots were paid. Things are different now.

These changes are fantastic for those starting out. I, on the other hand, was born about thirty years too early. It’s not that I make a bad living by any stretch. It just took a long, long time.

 

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Paper airplane photo by the author.

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Dignified and Old

February 9, 2024

So, earlier this week the U.S. Senate’s Commerce Committee shot down the move to increase the mandatory retirement age from 65 to 67. The measure lost by a single vote. Lawmakers succumbed to pressure from the Air Line Pilots Association, which spent months lobbying against the change.

The matter now goes to committee and there’s still a shot it could pass. But I wouldn’t count on it.

ALPA opposed the measure, but many of its constituents, including myself, did not. The union spun the whole thing as a safety issue, and warned of air travel becoming more “complicated” if it went through. The simpler truth is that ALPA has grown beholden to its younger members, who now comprise most of its membership, and who see raising the retirement age as an impediment to their career progression.

Which technically it would be, resulting in slower attrition, fewer upgrades and all that. But it’d be a small one. And these pilots too would have the opportunity to work an extra couple of years at the finale of their tenures, if they so choose.

For older hands like me, there’s resentment. Resentment because the luck and good fortune enjoyed by the newest generation of pilots cannot be overstated.

Entry-level salaries are the highest they’ve ever been. Even at the regional carriers, young pilots can bring in six figure salaries without much effort. Meanwhile at the majors, pilots are zooming up the seniority lists, with some getting captain slots before their 30th birthday. These pilots will be millionaires before age 40.

These same junior pilots skated through the COVID-19 fiasco without a hiccup. Thanks to taxpayer bailouts, they avoided furloughs and in some cases were paid nearly a full salary to simply stay at home for a year. Many took second jobs and collected two salaries.

For those of us of baby-boomer and Generation X vintage, such fortune is difficult to fathom.

In my day, regional pilots were making fifteen grand a year and paying for their own training. Most pilots didn’t make it to the majors until well into their 30s, if they made it at all. After slogging it out at the regionals and a cargo carrier for nine years, I was hired by a major carrier in the spring of 2000 at age 35. Starting pay at the time was around $30,000 a year.

Then came the industry crash in 2001, and thousands of us found ourselves laid off. Those who kept their jobs were hit with massive pay and benefit cuts and elimination of pensions as the airlines went through a cycle of chapter 11 bankruptcies.

My furlough lasted five years. When I finally went back to work in 2007, I was 40 years-old and my salary was about $65,000. That was sixth-year pay. And it was the most I’d ever made in my life.

While all that was going on, the retirement age was bumped from 60 to 65. You think two years is a drag chute on your career progression, try five. But we dealt with it, and now we too can work until that age.

Long and short, we have some catching up to do. Those two extra years would be a huge help. The money, the health benefits.

New-hires in 2024 are earning in their first one or two years what it took us a decade’s worth of seniority to make. Projected over a thirty or forty-year career, the earning potential for a pilot hired today is absurd. Adjust for inflation all you want; the differential over any length of time is huge.

Wars, recessions, and any of a dozen other calamities could set the industry reeling yet again, it’s true. But that doesn’t offset the tremendously good fortune the newest pilots are currently basking in. My peers and I faced those same risks, but without the front-end benefits of today’s generation. Things might go sour at some point, but if nothing else they’re making fantastic money in the meantime. For us that wasn’t the case.

The younger gang is having its cake and eating it too, frosting and all. Maybe it’s human nature; call it selfishenss or self-interest. If I were in their shoes, what would my vote be? Still it feels greedy, even petty, as one generation of pilots prevents its predecessors from making up lost ground.

 

Original Story:
DIGNIFIED AND OLD

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Photo courtesy of Unsplash.
Numbers graphic by the author.

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Dignified and Old

July 26, 2023

A PROPOSAL is moving through the U.S. Congress right now that would increase the mandatory retirement age for pilots from 65 to 67. The proposal has momentum and bipartisan support, and many expect it to become law.

Count me among those hoping this happens.

Those pushing for the change cite the ongoing pilot shortage as one of the reasons. Fair enough, though for me it’s more personal. For one, I really enjoy my job. As things currently stand I have eight years left, and I’d love to stay at it for a couple more (assuming all the radiation exposure doesn’t kill me first). But perhaps more importantly, I have a substantial amount of lost income to make up for, having been laid off for half a decade in my mid-thirties — prime earning years.

Not everyone is on board, including Transportation Secretary Pete Buttigieg. Also among the opposers is the Air Line Pilots Association (ALPA), the world’s largest pilot union. This might seem a bit of a head-scratcher, and I suspect their resistance is owed to demographics: pilot rosters are skewing younger and younger these days, and many of the newest pilots see age 67 as a threat to their career progression. Older pilots like me will stay on the property slightly longer, the thinking goes, impeding their seniority advantages (aircraft bidding, seat bidding, and so forth).

Forgive me if I’m less than sympathetic.

In 2001, after slogging it out at the regionals and a cargo carrier for nine years, I was hired by a major carrier at age 35. Starting annual pay at the time was around $30,000, and I was promptly furloughed in the wake of the September 11th attacks. (My ensuing gig as an online columnist and author was fun, but by no means lucrative.)

While I was out of work, my airline, along with several others, declared bankruptcy. Industry-wide, wages were cut some 40 percent and retirement plans eliminated.

Then, in 2007, shortly after being recalled, the retirement age was extended not merely two years, but five, from age 60 to age 65. Not only did I miss out on several years of major airline salary, but the minute I got back, seniority movement slowed to a crawl.

You wanna whine about threats to your career progression? Try five years of furlough, a bankruptcy, and a massive seniority slowdown first.

If this sounds like a sob story, it’s not just mine. Thousands of other airline pilots went through all of the same things — or worse.

The industry has since changed dramatically, and pilots entering the ranks today have never had it better. It’s common now for the legacy carriers to bring on pilots in their mid-twenties, and under the latest contracts, new-hires are earning in their first one or two years what it used to take a decade or more to make. When I returned from furlough, my sixth-year first officer hourly rate was $65 per flight hour. Pilots are now making $100 or more per hour on day one.

These same pilots are upgrading to captain in record time (at some airlines, new-hires are getting widebody captain slots), and otherwise racing up the seniority lists. Projected over a thirty or forty-year career, the earning potential for a pilot hired today is absurd. Adjust for inflation all you want; the differential over any length of time is huge.

I should mention also that salaries at the regional carriers have vastly improved. Most airline pilots begin their careers at the regional level, and here too they are cashing in. In my day, starting pay at the regionals was under $20,000 a year, working conditions were abysmal, and in some cases you had to pay for your own training. Today an RJ pilot can easily bring in six figures. You can make a good living even before scoring that dream job with a major.

To say nothing of the fact that junior pilots skated through the COVID-19 fiasco without so much as a hiccup. Thanks to the taxpayer bailouts, they avoided furloughs and in some cases were paid nearly a full salary to simply stay at home for a year. Many of them took on second jobs and collected two salaries.

For those of us of baby-boomer and Generation X vintage, such fortune is difficult to fathom. Hence, when I hear some twentysomething hotshot whining about the “damage” the age 67 change might wreak, my reaction is a combination of exasperation and bemusement. You’ve got to be kidding.

Wars, recessions, and any of a dozen other calamities could set the industry reeling yet again, it’s true. But that doesn’t offset the tremendously good fortune the newest pilots are currently basking in. I, along with thousands of my peers, faced those same risks, but without the front-end benefits of today’s generation. Things might go sour at some point, but if nothing else they’re making fantastic money in the meantime. For us that wasn’t the case.

All told, it has never been a better time to be a pilot.

If you’re worried about competency, training cycles and medical certification standards are there to ensure older pilots are up to the task. And, I should add, nobody is going to force you to work until 67. You’re free to retire at 65, or any other age at which you feel comfortable. And the extra two years aren’t just for the older workers; they’re for the new-hires as well, eventually.

The idea isn’t without its complications. Most foreign authorities remain committed to the age 65 limit, effectively blocking any U.S. airline pilot over that age from flying beyond American borders. Unless that changes, pilots between 65 and 67 would be restricted to domestic-only routes. This will cause some training headaches and require some finessing of airline seniority lists, but it’s certainly doable.

You’ll maybe detect a tone of resentment in this piece. That’s not quite how I mean it. Much as I might be jealous, I cannot begrudge anyone the advantages of youth and fortuitous timing. Good for them. Just please don’t take it for granted. They need to understand how lucky they are, and how different things used to be. While most new pilots realize this, there are those who don’t, and who seem to think they’re entitled to a hassle-free career and a bursting bank account before they’ve hit 30. If you’re in that camp, try to understand why and how, to some of your older coworkers, griping over a two-year age extension sounds greedy and petty.

 

Related Story:
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Photo courtesy of Unsplash.
Numbers graphic by the author.

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The Regional Reckoning

September 6, 2022

IT’S BEEN quite a show, watching the regional airline sector reinvent itself.

For decades the regional carriers were the dregs of the airline business. The pay was dismal, working conditions hostile, your future uncertain at best. But then something happened. They ran out of pilots.

In a desperate attempt to recruit and retain pilots, salaries have skyrocketed. Carriers are offering unprecedented benefits and incentive packages. Many are giving out sign-on bonuses in the tens of thousands. Suddenly, their backs against the wall, these airlines are doing what they should have done years ago: making themselves attractive places to work.

If you’re unclear, the companies we’re talking about are the various “Express” and “Connection” subcontractors that fly on behalf of the legacy majors. Some of these airlines are wholly owned by their big-league affiliates, but they operate as independent entities, with their own fleets, employee groups, seniority lists and pay rates.

My first job as a commercial pilot, in 1990, was with a regional outfit called Northeast Express, operating on behalf of Northwest Airlines. My opening salary was less than a thousand dollars a month. Sure, 1990 was a long time ago, but it wasn’t that long ago. Five years and a bankruptcy later, working at American Eagle, I made $14,500 a year. Then, as a captain at TWA Express in the late 1990s, I would’ve made around $40,000 — if I hadn’t quit before the year was out. Throughout the 1990s and into the new century, new-hire pilots were often expected to foot their own simulator training costs, on the order of $10,000 or more. And the money was only part of it. Schedules were brutal, contractual protections minimal or non-existent.

The idea was to put your time in and get the hell out. Keep your fingers crossed that the majors were hiring. Trouble was, as time went on, this became a bigger and bigger gamble. Beginning with the advent of modern regional jets (RJs) in the mid-1990s, the majors began outsourcing more and more flying to their lower-cost partners. Thus the regional sector grew and grew and grew, eventually accounting for 50 percent of all commercial flights in the United States. Fewer and fewer of the ranks, as a percentage, were moving on to better pastures. Pilots quickly realized that a job with a regional airline could easily mean an entire career with one. The “stepping stone” idea became a harder and harder sell. After sinking a hundred grand or more into primary flight training and a college degree, what the regionals had to offer was hardly a promising return on investment.

And so, in time, the number of applicants dried up. An entire generation of would-be pilots was driven away. Rightly so.

This spawned the pilot shortage we hear so much about. What many people don’t understand is that all along it’s been a shortage created by, and suffered by, the regional carriers. The majors, at least for now, still see a hundred applicants for every opening. At the regionals it’s another story. They were being burned at both ends: new-hires became impossible to find, while the major carrier hiring wave was skimming the more experienced pilots from the top. They were cancelling flights, getting rid of planes, in some cases shutting down entirely.

Something had to be done, and this is that something. Having been in this business for over thirty years, I can hardly believe I’m typing these words, but a first-year pilot at a regional carrier can now look forward to a a six figure income. Or close to it. I can’t overstate how staggering this is. That’s ten times what I made in 1990. Above and beyond the monetary improvements, several regionals have also put together “flow-through” agreements, whereby regional pilots are guaranteed a future slot at a major.

Going back through my old columns and article, one of my most repeated gripes was that of regional carrier pay and working conditions. Not anymore. Flying for a regional airline is set to become a vastly different job than it was.

Looks like I was born thirty years too early.

I just hope this latest generation appreciates it, and realizes what the prior one went through. They oughtn’t be surprised if they sense a little resentment coming from their older peers.

Which isn’t to begrudge them. This was a long time coming and it’s fully deserved. Finally, entry-level airline pilots can earn a decent and dignified living.


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United Express photo courtesy of Itamar Reuven

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