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What Can New Pilots Make? Near Minimum Wage
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A widening shortage of U.S. airline pilots is spotlighting the structure of an industry built on starting salaries for regional-airline pilots that are roughly equivalent to fast-food wages.
The shortage's toll rose Tuesday, as Republic Airways Holdings Inc., one of the nation's largest regional carriers, said it would remove 27 of its 243 aircraft from operation because it couldn't find enough qualified pilots. The news, which followed service disruptions at other airlines, sent Republic's shares down 4.1% to finish at $9.45.
Starting pilot salaries at 14 U.S. regional carriers average $22,400 a year, according to the largest U.S. pilots union. Some smaller carriers pay as little as $15,000 a year. The latter is about what a full-time worker would earn annually at the $7.25-an-hour federal minimum wage.
The shortage already is affecting big carriers. United Continental Holdings Inc. said this month that part of the reason it plans to slash flights at its Cleveland hub by 60% this spring is its regional partners' inability to meet the carrier's schedule. Republic is pulling 12 small jets that it flies for United.
Other carriers are resorting to different tactics. Great Lakes Aviation Ltd. of Cheyenne, Wyo., said it has 100 pilots, down from 300 just a year ago. It is removing 10 seats from a handful of its 19-seat planes to operate them under different Federal Aviation Administration rules that require pilots to have just 250 hours of experience.
"We have absolutely no ability to attract résumés" from pilots with 1,500 hours of flight time, said Doug Voss, chairman of Great Lakes, whose pilot salaries start at around $16,500 a year.
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