Ben Hamilton
A pilot shortage is plaguing U.S. regional airlines. But the shortage isn't having much of an impact on ImagineAir, an on-demand charter carrier that primarily flies routes of just a few hundred miles using four-seat aircraft. ImagineAir had 4,573 flights last year, compared to 1,423 in 2008, its first full year of operation. ImagineAir CEO Ben Hamilton talked with airline editor Robert Silk about why his company has been undeterred by the shortage.
Q: Is the pilot shortage a factor for a charter carrier like ImagineAir?
A: It's really affecting the whole industry due to the number of baby boomers retiring and the lack of pilots entering. We definitely have seen a drop in applications. That being said, there are 45,000 baby boomer pilots retiring in the next 15 years. There is an opportunity for on-demand companies, like ImagineAir, to employ these retiring baby boomers who want to fly for another five or 10 years.
Q: There's a mandatory commercial pilot retirement age of 65. Why isn't your company subjected to it?
A: The FAA hasn't imposed strict limitations on on-demand companies. They still have medical standards. If the pilots take the medical tests and they're healthy, we're happy to employ retired commercial and military pilots.
Q: You've sought to hire veteran military pilots. How does that set you apart from other small airlines?
A: A good percentage of the retiring airline pilots actually flew in the military, as well. We've hired pilots between ages 60 and 65.
They have a lot of experience and have made great pilots for ImagineAir. It's really benefited us over the last few years.
Q: How many of your pilots were formerly in the military?
A: Of our pilots, I'd say 50% are either retired airline or military. Most of the retired airline pilots are retired military, as well.
Q: How much do you pay your pilots? Compensation is a major problem for many small, commercial airlines.
A: Our full-time pilots do get a bit more money than they would get flying for a regional airline. We also have flex pilots who choose the days they want to work. Then if there's a flight available, they get paid a daily rate between $175 and $325. The retired pilots, sure, they take a cut from being senior pilots at a commercial airline, but these are folks who love to fly. They get to be home most nights of the week. There's less hotel days. And they're not flying the same routes over and over.
Q: Is there a lesson the industry can learn from your approach to hiring pilots?
A: They're in a bind. Republic [Airways] just declared bankruptcy. The pilot shortage is a product of two factors: the large amount of pilots retiring at 65, and on the front end, it's the change of regulations that make it very difficult to fly.
[In 2013, a new rule went into effect, increasing the minimum time a pilot must have in the cockpit, going from 250 hours to 1,500 hours in order to fly for a commercial airline.] My prediction is airplane technology is going to improve; aircraft are going to be easier to fly. My hope for the entire industry is that regulators will take a close look at what they've done and determine it's not good for the entire industry. They've missed the ball on this one.