AIR, Inc.

US carriers hire 5,845 pilots in 2002 but 7,475 remain furloughed Brendan Sobie, WashingtonDC (13Jan03, 20:52 GMT)

US carriers hired 5,845 pilots in 2002, but the US pilot furlough ranks grew another 7.8% and hiring at majors shrank by 83.5%.

US majors hired only 549 pilots, the lowest figure since 1993 and a big drop compared with the 3,318 pilots hired in 2001, according to a tally conducted by Aviation Information Resources (AIR) Inc. Several smaller majors plan to hire pilots in 2003, but Air Inc puts this figure at only 800 and also expects new rounds of furloughs among the large majors.

“It’s [the furlough announcements] not over yet, but it’s definitely slowed,” says AIR Inc president Kit Darby.

Only five US majors hired pilots last year ? Alaska Airlines, American Trans Air, America West Airlines, FedEx Express and Southwest Airlines. Darby expects only two majors ? DHL Airways and United Parcel Service Airlines ? to join this list in 2003.

Darby also anticipates the furlough list, which ended 2002 with 7,475 pilots, to again grow slightly in 2003.

Most of the pilots now on furlough have been out of work since the fourth quarter of 2001. Only 543 pilots were added to the net furlough list in 2002, but this figure is slightly misleading because new furloughs at large US majors were partially offset by recalls at smaller carriers such as America West and Mesa Air Group.

Darby expects several US majors, including American Airlines, Delta Air Lines, United Airlines and US Airways, will continue to furlough additional pilots at a slow pace until they return to profitability. The furlough lists at Northwest Airlines and Continental Airlines, two mid-sized majors that are financially closer to break-even, are expected to remain roughly stable in 2003.

Carriers generating between $100 million and $1 billion in annual revenues accounted for 29%, or 1,698, of the new pilots last year. Operators generating under $100 million in annual revenues, including fractional business jet operators, hired 3,598 new pilots last year, accounting for 62% of the total. In 2000, this category accounted for only 40% of the pilots, with US majors accounting for 25% compared with their 9% contribution in 2002.

The top three companies hiring pilots in 2002 are regional jet operators shy of the $1 billion annual revenue threshold required for major carrier status ? Atlantic Coast Airlines (ACA), Atlantic Southeast Airlines and Comair. ACA led all carriers with 414 pilots hired, followed by Comair at 288 and ASA at 230. Southwest was fourth with 197 pilots, down 58% from the 471 pilots it hired in 2000. Fifth was regional SkyWest Airlines with 195 pilots hired.

AIR Inc expects 7,075 pilots will be hired in 2003, with 800 at the majors; 2,000 at carriers in the $100 million to $1 billion annual revenue range; and another 4,275 at operators with less than $100 million in annual revenues.

Source: Air Transport Intelligence news http://www.rati.com