Whopping Shortfall of Pilots

The deficit of pilots poses a serious problem for the region’s fast-growing airlines and also general aviation and business aviation. At the same time it presents a huge opportunity for companies that provide training services.

Issue: BizAvIndia 2/2016By R. Chandrakanth Illustration(s): By Anoop Kamath

The International Civil Aviation Organisation (ICAO) has forecast that the Asia-Pacific region will need 2,30,000 pilots by 2030 and will have to train approximately 14,000 people annually to meet that need. However, the region currently only has the capacity to train about 5,000 people a year, leaving a whopping shortfall of 9,000 new pilots every year between now and 2030.

As regards business aviation, the shortage of pilots is going to increase if one considers the predictions of various industry organisations. Over the next 20 years, North America is expected to receive 9,500 business jet deliveries, with 3,920 to Europe and 2,420 reaching China. These shortages stare in ones face as training is not catching up with demand and it is estimated that the output for pilot training institutions worldwide sustains a shortfall of around 3,000 pilots annually. And there are no dedicated-flying training institutions for general/business aviation, unlike mainline airlines.

This deficit poses a serious problem for the region’s fast-growing airlines and also general aviation and business aviation. At the same time it presents a huge opportunity for companies that provide training services.

The Pilot Career Center (PCC), an online portal which started in 2001, states that the shortage is going to impact majorly operators whether it is mainline airlines, regional airlines or general and business aviation. In one of the articles it begins with the often-heard statements “Flight schools have been forecasting a pilot shortage for 30 plus years”; “Is there really a shortage?”; “I know a guy who has applied all over and cannot get a job anywhere” and the like. To all these questions, PCC’s answer is an emphatic one. “Yes, there is a massive pilot shortage – today, tomorrow and for years to come.” It substantiates its statement by giving facts and figures of what is happening globally.

Factors driving demand

The first step in understanding pilot shortage it says is to look at factors that created it:

  • High levels of retirements (pilots turning 65) in Europe, USA, Canada and Australia/New Zealand
  • Global aviation growth alongside huge economic growth in South East Asia, China, India, Africa, New Zealand, USA, etc
  • New airplane technologies (B787, A350, etc) enabling direct flights between cities never before connected
  • Massive growth of airlines in the Middle East
  • The advent of new, ultra-long range business jets to the VVIP market; allowing the ultra-rich to cross oceans without a fuel stop
  • Low-cost airlines and ultra-low-cost airlines growing at record rates across the world
  • Many years of very low pay rates in the US regional airline market creating years of low intake levels
  • Low oil prices increasing airline profits – enabling short-term growth demand
  • The introduction of highly fuel-efficient regional turboprops allowing efficient services to smaller communities
  • The growth of seaplane infrastructure and efficiencies for popular coastal communities

Besides, the regulations in Asia vary from country to country, unlike in Europe or North America that affect not only pilot training but recruitment. For instance in India, a foreign pilot has to get his licence certified by the Directorate General of Civil Aviation, a process which is said to take about a year. As regards training of ab initio pilots too there are differences and a training academy should know what the country’s rules and regulations are when it comes to flying. The need for standardisation of training and rules across Asia is urgent, but there is no single aviation body in the region which could facilitate this transition.

High training costs

There are several institutes in India including the world-renowned Montreal-based CAE which imparts training and they are in sync with local needs and aspirations. Flying training cost is a major impediment to growth. It costs anywhere up to Rs. 50 lakh to get a commercial pilot licence. The Indira Gandhi Rashtriya Uran Akademi (IGRUA) based in Fursatganj, Uttar Pradesh, charges fees of Rs. 32.50 lakh whereas the cost of training of CPL at IGRUA is over Rs. 40 lakh. The gap is made up by the Government of India which gives subsidy. But for a trainee, after having invested so much, there is no guarantee of a job, at least it has been the case till recently. Now with the aviation sector opening up fast, the demand for pilots is on the rise. However, the cost of training remains a major barrier to many wouldbe pilots, male or female.

First preference airlines

As regards general and business aviation, they get attention after the mainline jobs are dried up or if the particular pilot wants to be in this niche segment. General and business aviation is growing at a steady pace and this segment requires pilots with a different approach basically as they will be the interface between the operator and the client.

The business jets and turboprops are state-of-the art and offer many features to the different segments – executives, VIPs, celebrities, essential mobile workforce, etc. Almost all the airframers – Gulfstream, Bombardier, Embraer, Dassault Falcon, Textron Aviation and others – produce aircraft that are equipped with the latest of avionics, comfort, inflight entertainment and other features, all of which the pilot has to be aware of as, invariably he may double up as cabin crew too.

Communication skills

Difficulties in obtaining the qualified pilots are highlighted not only by the wider variation in aircraft types compared to commercial aviation, but also by the need for an ancillary set of skills. Customer communication and cross-cultural management skills are highly valued in business aviation where pilots are directly visible to their clients and are accorded with less organisational oversight. Establishing a strong relationship with clients in determining their needs and preferences is vital. In addition, pilots are often required to display initiative in non-occupational circumstances. For instance, a flight to a remote airfield or developing country may necessitate the direct payment for fuel, catering and other services by the pilot. Facilitating a smooth transaction that guarantees value for the company requires an array of managerial, cultural and business skills on behalf of the pilot.

Then there are issues of training with regard to business and general aviation aircraft. According to reports only four per cent of trainee pilots opt to pursue a career in general/business aviation while the demand for business jets is expected to grow by 10 per cent year-on-year. The issue is certainly of meeting the demands of the industry with qualified pilots.

“Business jets are no longer an exclusive luxury item. The accelerating demand for their use in charter, tourism and medical services is the result of the ability to fly to destinations not served by regular scheduled operators. However, it is on this basis that envisions the difficulties faced by business jet pilots. While their airline equivalents have a standardised roster, prospects of career progression and a regular income, such benefits are not readily available to pilots working in the private aviation sector. Indeed, it is often the case that business jets operate for very small companies affording fewer opportunities for pilot advancement,” states Skaiste Knyzaite, CEO of AviationCV.com in an article.

“Business aviation affords its own unique opportunities, be it to assist in humanitarian missions at outreach destinations or to fly the world’s VIPs from point A to point B at relatively short notice. However, the industry continues to be a less desirable avenue for pilots owing to less stable conditions of employment. Moreover, it is unlikely that business aviation operators will establish direct-entry flight schools like those available to commercial airlines. With the growth in demand for business jets that we are currently seeing, it would appear to be a patent issue for companies in the industry. Thankfully however, the growth in flight crew leasing agencies offers solutions to this predicament. Several of these agencies operate to provide high calibre pilots for both short- and long-term contractual arrangements. Indeed, the stringent screening process employed by a number of these companies ensures not only a fully capable pilot, but one that possesses an array of supplementary skills desired by the client,” asserts Knyzaite.