Prime Group subsidiaries depend on ready availability of cargo-carrying aircraft

Buckle up as turbulence on the ground is impacting flight operations at 35,000 feet. And we’re not talking about the weather. Both global Air Cargo operators and commercial airlines are currently in a frenzied search for additional qualified aviators as a “global Pilot shortage” is unfolding.

It’s not a new trend, but it is intensified. Previously, Boeing had projected demand for 790,000 Pilots over the period from 2018 to 2038, a doubling of that skilled, professional workforce. In terms of here and now, Oliver Wyman, an international management consulting company, forecasts that pilot demand will outstrip supply in most regions globally between 2022 and 2024 — and worsen over the next decade.

“The industry is definitely seeing a critical labor need precipitated by growth in global air travel, rapid expansion of air service in many regions or the world, emerging economies with new aviation players, and sizable aircraft orders to build even larger aircraft fleets,” says Omar Zambrano, COO of Prime Group. “Adding to the equation, many highly experienced pilots took retirement during the pandemic, while many of the Baby-Boomer aged pilots are nearing retirement.” Zambrano also oversees day to day operations of Prime Group subsidiary Prime Logistics.

Zambrano says it’s like watching a perfect storm in formation. But what’s most worrisome is how these pilot shortages are increasingly impacting the bottom line for many aviation companies – and that can impact pricing for air cargo shipping. Prime Group subsidiaries Prime Logistics, Prime Fresh Handling, and PrimeAir all depend heavily on the ready availability of cargo-carrying aircraft.

So Why are Pilots Flying the Coop?

The continuing flow of pilots out the door of airline companies was covered earlier this year in an Associated Press story that said 10,000-plus pilots have left the field since the 2020 pandemic. That statistic was attributed to Helane Becker, TD Cowen’s airline, air freight, and aircraft leasing analyst, who closely tracks the pilot shortage situation.

Further exacerbating the situation is that fewer military pilots are entering the civilian workforce, due in part to fewer deployments and the military’s increased use of drones. Plus, a decade ago, the FAA mandated stricter rules for flight crew work hours and rest time, resulting in the need for more pilots and flight attendants.

Certainly, many young people dream of becoming a pilot. But the reality is that air cargo companies or commercial airlines can’t just hire candidates instantly. Given the required licenses needed, there’s a strong need for multi-faceted training, skill set development, flight time, and experience – and that often takes five years or so. “It’s a highly structured, time-consuming path, with regulatory agencies, airlines, air cargo companies, and pilot training academies all having sizable standards to be met,” notes Zambrano.

Keeping the Pilot Pipeline Full

The multi-year process can also be pricey for a potential new pilot, with costs up to the six-figure range. Some potential pilots who have young families also shy away from the career in a search for work-life balance. Pilots typically deal with schedules that change rapidly, and the job often requires much time away from home.

But there’s good news too. Aviation flight schools have beefed up their training programs to provide future pilots with the skills and certifications needed to enter the industry. Some regional airlines have forged partnerships with flight schools to encourage pilot trainees to start down the path to obtaining the required licenses, with the “carrot” of a potential pilot job with the regional airline at the end of the process.

Also, escalating pilot pay scales may keep experienced pilots working a few years longer. Post-pandemic, Oliver Wyman estimates that regional airline pay has increased 86 percent increase, while mainline pay scales are up 35 percent. Higher pay potential is also attracting new candidates to begin the training and licensing process.

But pilots may prefer to work for a mainline airline (for the perceived prestige or the global nonrevenue flight perks) versus a regional airline or air cargo company. So, then those companies have to increase their pay levels to attract new hires. That’s a hit to an air cargo company’s bottom line, for instance, and that can mean higher prices for shippers.

Atlas Air and BA Sweeten the Pot

One air cargo carrier with which Prime Group partners in South America is sweetening the pot with pilot perks in order to attract qualified pilots. U.S.-based Atlas Air is mitigating the ongoing pressures in pilot retention and recruitment by providing industry-leading benefits and other incentives.

Additionally, as outlined on Atlas Air’s website, their unrivaled Atlas Gateway travel program for instance, makes sure that all Atlas pilots have positive-space seats for every domestic commute, meaning no more flying standby or using a crash pad. It means Atlas pilots live where they want to live – and the company picks up the cost of their stress-free commute.

With the largest fleet of B747 freighters as well as 777, 767, and 737 aircraft, Atlas Air carries everything from the U.S. military to humanitarian aid, to fresh-cut flowers and other perishable commodities.

And back in September 2023, British Airways launched a program to make pilot training more accessible and attract top talent – by covering the full cost of training 60 pilots annually. The airline is also focusing on diversity and working with organizations to promote the training opportunity to people from Black, Asian, and minority ethnic backgrounds, other communities, and young women.

Says Sean Doyle, Chairman and CEO of British Airways, “We’re levelling the playing field by removing the initial training cost barrier to make a flying career more accessible to a wider range of people and giving everyone an equal chance.”

Helping Clients Make Informed Decisions

“It’s critical for clients to turn to the Prime Group of companies as we’re continually monitoring marketplace conditions, suggesting alternative shipping solutions, keeping a close eye on the client’s delivery timeline, looking at new transportation options, evaluating pricing and comparing methodology of shipping,” says Zambrano.

As Prime Logistics is helping its clients make informed decisions based on the best “intel” available, both air cargo carriers and commercial airlines have certainly fortified their pilot recruiting efforts. “Right now, competition among aviation companies for qualified pilots is fierce,” acknowledges Zambrano. Government officials too are looking to keep planes flying and maintain routes; many smaller city routes have been cut this year. That can put a damper on the economy and also cut down on options for shipping cargo.

On a final note, recently, the Georgia State Legislature called on aviation industry leaders to examine potential avenues for pumping up interest in the aviation field. One thought is to engage students early on with future pilot programs that start in middle school or high school; that could help expand the numbers and diversity of young people entering the pilot profession.

For now, though, the aviation industry is striving to weather the turbulence caused by pilot shortages, and Prime Group is there to support our clients in handling these ever-changing marketplace conditions.

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