Why is Regional Airline Pay So Bad?
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I was thinking the other day about my early days as a working flight instructor. I remember hanging out with a bunch of other instructors at Palwaukee airport grousing about how we’d live on the 5 bucks an hour we could get paid for sitting in the right seat of a Cessna 150. Then one day we heard about this guy on the airport who was willing to instruct for free … zero, zip, nada … just because he loved flying so much. He had another job so he didn’t really care about the money. I can tell you … the rest of us instructors didn’t much like this idea of a competitor undercutting our prices.
There was a lesson about pilot wages that I took from this experience after one of the other guys told me not to worry about that instructor. “Hey,” he told me. “The guy may get a few students, but don’t you think they’ll be paying him what both his students AND that instructor believe he’s worth?”
Hmmmm. I never forgot that.
So on to today’s topic … the lousy pay at the regional airlines. Why does it continue, many people wonder?
First a bit of context. Most of the regional airlines provide service to more than one major airline. Because there are only a few regional feeders to deliver service to the few majors we have left in this country, the business has become pretty cut-throat. That means those regionals will do most anything to keep costs low and that means … you guessed … keep wages low.
So let’s compare Envoy, the old American Eagle carrier, with the mainline pilots at American Airlines just to see how different the groups are.
You may have heard recently the American mainline pilots — represented by the Allied Pilots Association — just signed a new contract, one that gives them an immediate 23% pay hike and 3% annual raises after that. Not bad, but then American Airlines pulled down some serious profits the past few years including a windfall off the drop in fuel prices. [Read more…] about Why is Regional Airline Pay So Bad?