Incident 2: Who’s Flying the Plane? Many industries face a shortage of individuals to fill essential jobs. Among them is the commercial airline industry where a pilot shortage is expected to swell to 20,000 by 2022 and more than 30,000 by 2034. This trend weighs heavily on most airlines. Greg Muccio, a senior manager at southwest Airlines Company lamented, “That is one of the things in my job I get to worry about every day and when I go to bed at night.” He sees an overall lack of interest in becoming a commercial pilot as a key problem, “That’s what puts us in the most jeopardy.” There are many factors that may be contributing to this lack of interest. Most commercial pilots spend the first several years working for regional airlines where annual pay has been traditionally quite low—in the $20,000 range. Eventually, many of these airlines doubled starting pay. Still, raising pay has done little to move the needle. The cost of flight-training is quite high, surpassing the $100,000 mark after factoring in the cost of tuition and living expenses. And, recent tighter government regulation requires substantially more flight hours and other experiences, typically, at lower paying jobs, before they are eligible for co-pilot positions at commercial airlines. Undoubtedly, tightening regulations will make preparation for becoming a commercial pilot even more expensive.  4-30. What are some of the challenges facing the commercial airline industry? Discuss. 4-31. Given the changing landscape for staffing commercial airlines with qualified pilots, what are some considerations for the airlines’ human resource management practices?   4-32. What role has recent government regulation played in this situation? Discuss?

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Incident 2: Who’s Flying the Plane?

Many industries face a shortage of individuals to fill essential jobs. Among them is the commercial airline industry where a pilot shortage is expected to swell to 20,000 by 2022 and more than 30,000 by 2034. This trend weighs heavily on most airlines. Greg Muccio, a senior manager at southwest Airlines Company lamented, “That is one of the things in my job I get to worry about every day and when I go to bed at night.” He sees an overall lack of interest in becoming a commercial pilot as a key problem, “That’s what puts us in the most jeopardy.”

There are many factors that may be contributing to this lack of interest. Most commercial pilots spend the first several years working for regional airlines where annual pay has been traditionally quite low—in the $20,000 range. Eventually, many of these airlines doubled starting pay. Still, raising pay has done little to move the needle. The cost of flight-training is quite high, surpassing the $100,000 mark after factoring in the cost of tuition and living expenses. And, recent tighter government regulation requires substantially more flight hours and other experiences, typically, at lower paying jobs, before they are eligible for co-pilot positions at commercial airlines. Undoubtedly, tightening regulations will make preparation for becoming a commercial pilot even more expensive. 


4-30. What are some of the challenges facing the commercial airline industry? Discuss.

4-31. Given the changing landscape for staffing commercial airlines with qualified pilots, what are some considerations for the airlines’ human resource management practices?

 


4-32. What role has recent government regulation played in this situation? Discuss?

 

 

 

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