Pilot Training and Air Service Issues View from the Regional Airline Association NACo Legislative Conference February 21, 2015

D.C. area forecast: Difficult travel expected as snow arrives today and turns to a wintry mix tonight (2-5 inches will close this city down!) Images and forecast courtesy Capital Weather Gang, the Washington Post February 21, 2015

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A deepening pilot shortage remains the number one issue facing RAA and its members Airlines continue “self help” measures –Stepped up recruiting efforts –Higher salaries and significant signing bonuses –More flow-through and bridge programs –Collaboration with universities and a scholarship fund Despite these steps, considerable challenge remains Pilot-shortage has already impacted air service -- to communities large and small – and stands to worsen

86 airports recorded a 10% or greater decrease in departures in 2014 (includes all scheduled services) BTS data

Claim: “Recent air service cuts are merely a factor of capacity discipline, not pilot shortage.” False! Mergers are but one factor influencing air service; pilot supply has played a key role in numerous reductions. Airlines have attributed specific instances of service cancelations or disruptions to pilot shortage Carriers need to help communities understand when reductions (as well as disruptions) are attributable to crew shortages Instances of pilot-shortage related service drawdowns will become more common and increasingly obvious We are tracking data that will help illustrate the problem

Claim: “There is no pilot shortage; only a pay shortage.” False! The pilot shortage is real and is impacting airlines and air service. First year, first officer wages have been scrutinized Collective bargaining – with its emphasis on seniority - plays a role Several regional pilot groups recently rejected tentative labor agreements that would have improved wages or offered enhanced flow up to a major Salaries have gone up, airlines have offered significant signing bonuses, yet the problem persists Pilot salaries are being increased, but this will not solve the pilot shortage problem!

Claim: “GAO’s pilot workforce report did not find a pilot shortage.” False! GAO reported “mixed” findings on pilot shortage. Additionally : GAO used unemployment rates and static earnings to qualify evidence of shortage without factoring in 9/11 or the recession GAO recognized some airlines have boosted hiring incentives, yet unable to fill training classes GAO reported that flight schools worry increased costs will threaten enrollments GAO reported that regional airlines are experiencing a decline in the quality of new applicants despite the 1,500-hour requirement

Claim: RAA seeks to “roll back” key safety improvements False! RAA supported the vast majority of FAA’s FOQ rule. We objected to the requirement for first officers to hold 1,500 hours of flight time to become eligible for hiring because it does not advance safety and carries unintended consequences. –High hours of flight does not equal competence –Not all “experience” is equal –The rule emphasizes quantity over quality in a way that encourages aviators to favor building hours over structured training –Greatly lengthens time lapse between structured training and airline training –Airlines have experienced decline in the quality of new hires under the new standards – is this the direction we should be taking?

Safe. Professional. Reliable. You say “Tomato,” I say “Pilot Shortage” Pilot Certificates Issued (FAA and GAMA)

Pilots Face Mandatory Age 65 Retirement, Creating Need for Replacements Source: Akin & Associates, The Perfect Storm: Causes and Consequences of a Looming Pilot Shortage, January 24, 2014

Looking for an empty seat? 12

Essential Air Service Funding for FY2015 is authorized at approximately $258M President’s budget asked for $175M (+50 million standing) Republican budget may include across-the-board % cut Program has some “carryover funds” of $50M Threats to the program via new eligibility proposals Enforcement of prior enacted eligibility cuts –Mileage criterion was adjusted upward from 70 to 90 miles –No grants for airports within 175 miles of a hub airport with fewer than 10 daily enplanements –Program is capped at current communities – you’re either in the boat or you’re not

Next Steps Regulatory –Persuade FAA to use more of its statutory flexibility to increase credit hours for structured training –Explore alternate pathways for first officer training that achieve higher levels of safety –Return emphasis to quality of training over quantity of flight hours Legislative –Congress is better educated on why credit for structured training is safe and reasonable, reasonably interested in discussing alternate, high-caliber training pathways –Concerned about service cuts –Beginning to ask questions about unintended safety consequences –Could provide direction to FAA through sense of Congress or language in FAA Reauthorization –Could facilitate productive discussion with Flight 3407 families –Critical that anything we do truly advances safety and we articulate this Coalitions –Consensus is critical -- we’d like your support!

RAA Coalition: Take Flight Tomorrow

Thank you! Faye Malarkey Black Interim President Regional Airline Association – direct