Regional airlines
PSA, Envoy and Piedmont, each of which is wholly owned by American Airlines,
have upped signing bonuses for all new pilots to $15,000.
The move comes as regional carriers across the U.S.
are struggling to keep cockpits manned due to a pilot shortage.
“This valuable improvement enriches PSA’s existing top-notch
employment opportunities which already offer the highest quality of life in the
regional industry and a true seniority-based pilot flow-through program to
American Airlines,” reads the statement from one of the carriers.
Previously, Piedmont paid a $5,000 signing bonus while Envoy and
PSA paid bonuses of at least $10,000 for all pilot hires and bonuses of up to
$15,000 based upon experience.
The three
airlines also announced that they will increase the payout to employees
who successfully refer a pilot candidate from $1,000 to $5,000.
Low wages at
regional airlines as well as a 2013 regulation that
increased the training hours required to serve as a first officer from 250 to
1,500 are both commonly blamed for the pilot shortage. Compounding
the problem will be the retirement of an estimated 13,000 to 15,000 pilots
between now and 2022 at American, Delta, Southwest and United.
The shortage has been one driver of contractions in the U.S.
regional airline network. The number of city pairs that mainline U.S. carriers
service through their regional affiliates dropped from 1,959 to 1,604 between
2004 and 2015, according to airline industry analyst Intervista Consulting.
The signing bonus
increases at PSA, Envoy and Piedmont come on the heels of each airline’s
respective establishment in January of a cadet training program that provides a pathway to
eventual pilot posts at American while offering financial assistance to
promising pilot candidates.