| The mandatory retirement age for airline pilots has | | | | Next let's look at the plight of the pilots between ages |
| been changed from age 60 to age 65 with the | | | | of 30 and 45. These are the pilots who have been |
| passage of bill H.R. 4343. The House of | | | | most adversely affected by the recent turmoil in the |
| Representatives passed the bill on Dec 11th, the | | | | airline industry. They have been furloughed two or |
| Senate on Dec 13th and President Bush quickly signed | | | | three times because of airline bankruptcies and |
| it into law late on Dec 13th. Why did the bill pass? | | | | consolidations. They have lost their Captain seats and |
| Simple statistics. | | | | been pushed back to the right seats of airliners, |
| The FAA estimates that there were 144,681 Airline | | | | suffered big pay cuts and lost pension benefits. They |
| Transport Pilots (ATP) in the US as of Dec 31, 2006. | | | | are adversely affected by the age 65-Rule because |
| Over 13% of ATPs were between 55 and 59 years | | | | now it will take them 5 more years to reach the |
| of age and over 15% were between 50 and 54 years | | | | golden seniority numbers that will assure them good |
| of age. Keeping the mandatory retirement age at 60 | | | | quality of life scheduling options. They have only been |
| would mean airlines would be losing their most | | | | on their current company seniority list for a short time |
| experienced pilots at a rate of almost 3% per year for | | | | so they would not be losing a promising place in line if |
| the next ten years at a time when the FAA expects | | | | they leave that company. These pilots are more |
| passenger traffic to increase by 4% annually. A | | | | energetic and more accepting of new technology than |
| statistical analysis of the mandatory retirement age | | | | their seniors. They make for better instructors |
| makes the Age-65 rule a no-brainer. But how will this | | | | because they have not lost the connection to the |
| new law affect air taxi? | | | | younger generation. This age group will be the most |
| First let's realize that some airline pilots will want to | | | | sought after by airlines, training academies and air taxi |
| retire before age 65 so we'll still have some attrition | | | | companies. They have been dealt the aviation wild |
| there. Also we should consider that older pilots are the | | | | card, and they have many options in how to play their |
| most highly paid segment of the pilot group so keeping | | | | hand. Opportunities abound in business aviation from |
| them around longer will raise labor costs for airlines. | | | | flight instruction or mentoring in a VLJ to owning and |
| Ultimately airline ticket costs will rise in lock-step. Had | | | | operating their own jet for hire. The airline career has |
| the age-60 Rule remained in effect there would be | | | | lost much of its luster for these pilots so it will take |
| options for retiring airline pilots to pursue their flying | | | | very hefty bonus packages to keep them flying |
| passion as air taxi pilots or Mentor pilots. This could | | | | red-eye schedules. |
| have been a way to mitigate the pilot shortage but | | | | Changing the mandatory retirement age puts a |
| now it looks like that door is closed. The air taxi | | | | band-aid on the pilot shortage but it will create a flurry |
| industry must get its experienced pilots by offering | | | | of job shifting in mid level pilots. The dust will probably |
| better incentives to mid level pilots than the airlines | | | | settle in about 5 years when the beneficiaries of the |
| trying to retain them. This will lead to price wars for | | | | recent law change will again be ready to retire. We |
| qualified Captains of all ages. The Captains most likely | | | | won't be able to change the retirement age to 70 at |
| to jump ship will be those in the age range between | | | | that time so I hope we'll be ready with a fresh batch |
| 30 and 45 years. Airlines will offer them incentives to | | | | of younger pilots to take their place. |
| stay and that will also raise the price of airline tickets. | | | | |