Airline Careers Archives - FLYING Magazine https://cms.flyingmag.com/tag/airline-careers/ The world's most widely read aviation magazine Thu, 04 Jul 2024 16:00:00 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.4 Spirit Hands Out Furlough Notices Amid Pay Raises for Executives https://www.flyingmag.com/spirit-hands-out-furlough-notices-amid-pay-raises-for-executives/ Thu, 04 Jul 2024 16:00:00 +0000 /?p=210723 The low-cost carrier plans furloughs for about 200 of its pilots.

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Spirit Airlines pilots and their union have raised concerns over the carrier’s decision to issue furlough notices to pilots while simultaneously approving salary increases for several top executives.

In a July 1 Form 8-K filing, the carrier announced pay raises for four of its C-suite executives and its CEO. At the same time, 200 pilots received furlough notices—a plan the airline initially laid out in April due to aircraft engine issues and slower growth plans.

According to the filing, Spirit announced the appointment of Frederick Cromer as executive vice president and chief financial officer, replacing Scott Haralson, who left the airline last month. Spirit detailed salary increases and bonuses for other C-suite members who would receive base salaries to the tune of $950,000, $650,000, $525,000, and $500,000, beginning July 1.

Meanwhile, the low-cost carrier made a deal with Airbus to delay all deliveries until 2030-2031 in an effort to save money. Spirit says the move would improve its liquidity by $340 million over the next two years.


Editor’s Note: This article first appeared on AVweb.com.

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American Becomes Latest Airline to Halt Pilot Hiring https://www.flyingmag.com/careers/american-latest-airline-to-halt-pilot-hiring/ Fri, 21 Jun 2024 19:17:20 +0000 /?p=210052 The Fort Worth-based carrier announced that it would pause pilot hiring through the end of the year.

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American Airlines says it plans to cease pilot hiring for the remainder of 2024.

In a memo to conditionally hired pilots on Thursday, the airline said all new hire classes would be paused through the end of the year as it evaluates ‘commercial and talent needs.’

The Fort Worth-based carrier joins a growing list of major airlines pumping the brakes on recruitment after a record-setting period of pilot hiring. Both Delta and United have substantially scaled back their pilot hiring outlooks this year. Southwest stopped hiring new aviators altogether.

In an April briefing, American Arilines vice president of flight operations Russ Moore initially said the carrier would only pause hiring during peak summer and winter holiday months. Moore added that it plans to hire roughly 1,000 fewer new aviators this year.

“In fact, we hired and trained more pilots in 2023 than we have in the history of this airline, and we did it efficiently enough that we were actually a bit ahead of where we needed to be for the summer of 2024,” Moore said during the briefing. “This allowed us to transition from a ‘hire and train as many as you can’ approach to a more traditional approach, which in and of itself reduced our hiring targets for 2024.”

Among the reasons for the hiring slowdown are aircraft delivery delays at Boeing, Moore said. American is currently awaiting the delivery of 787-9 Dreamliner and 737 Max jets from the embattled manufacturer.

“As part of our previously announced capacity adjustments, we are temporarily pausing new pilot class start dates for September, October and November, American said in a statement Thursday night. “This decision allows us to optimize our capacity and tailor our talent growth plans to best serve the current needs of our airline.”

Last year, American hired around 2,300 pilots, according to data from FAPA. Even with the pause, Moore noted that up to 850 of the airline’s pilots retire annually over the next five years.


Editor’s Note: This article first appeared on AirlineGeeks.com.

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American Scales Back Pilot Hiring Plans https://www.flyingmag.com/american-scales-back-pilot-hiring-plans/ Mon, 22 Apr 2024 14:34:10 +0000 https://www.flyingmag.com/?p=201148 The airline is pausing its summer classes and reducing its hiring targets by nearly half in 2024.

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American Airlines is the latest U.S. carrier to detail slashed 2024 pilot hiring plans. The Fort Worth, Texas-based airline is scheduled to reduce hiring by roughly 40 percent in 2024 compared to last year.

In a recent briefing to pilots viewed by AirlineGeeks, company vice president of flight operations Russ Moore said that American plans to hire 1,300 pilots this year. In 2023, the airline hired around 2,300.

Moore cited “delivery delays from Boeing” among the reasons for the reduction but noted that 2024 is still poised to be the airline’s third-highest year for pilot hiring on record. In addition, he said the company plans to pause new hire classes in June, July, August, and potentially in December.

“In fact, we hired and trained more pilots in 2023 than we have in the history of this airline, and we did it efficiently enough that we were actually a bit ahead of where we needed to be for the summer of 2024,” Moore said during the briefing. “This allowed us to transition from a ‘hire and train as many as you can’ approach to a more traditional approach, which in and of itself reduced our hiring targets for 2024.”

During the company’s investor day event in early March, CEO Robert Isom also noted the airline’s plans to pull back on pilot hiring.

“So [hiring is] slowing down a little bit, but we have a considerable number of retirements,” Isom said. “And so we will be hiring for the foreseeable future at levels like that.”

Despite the slowdown, Moore added that hiring could pick up again as up to 850 of the airline’s pilots retire annually over the next five years.

“So I expect we will be back to the 2023 tempo in hiring in pretty short order,” Moore said.

American joins a slew of other major airlines reducing their 2024 hiring, including both Delta and United. Earlier this year, Delta said it would also cut its 2024 pilot hiring plans in half.

The Allied Pilots Association (APA)—which represents more than 16,000 American pilots—recently noted that the pilot shortage was “over.”

“The perceived pilot shortage is over, eliminating any further need for policymakers to consider changing the retirement age,” said APA president Captain Ed Sicher in a March statement.

American did not immediately respond to a request for comment on the hiring slowdown.


Editor’s Note: This article first appeared on AirlineGeeks.com.

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Cargo Airline Sends New Boeing 767 Freighters Directly to Storage https://www.flyingmag.com/cargo-airline-sends-new-boeing-767-freighters-directly-to-storage/ Fri, 12 Apr 2024 20:37:42 +0000 https://www.flyingmag.com/?p=200319 Soft airfreight market forces Northern Air Cargo affiliate to postpone use of aircraft.

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The company behind Northern Air Cargo has taken delivery of two widebody freighter aircraft this year and immediately placed them in storage because there isn’t enough business to operate them profitably despite the improved outlook for the global airfreight market, FreightWaves has learned.

The decision represents the latest case of an all-cargo airline throttling back on fleet expansion plans made during the COVID-19 crisis when a shortfall in shipping capacity sent rates through the roof and made freighters valuable assets.

Northern Air Cargo, which serves communities in Alaska from its base in Anchorage, lost $12 million in the 12 months ended September 30, according to data on airline performance metrics compiled by the U.S. Bureau of Transportation Statistics.

The idled cargo jets wear the brands of sister companies Aloha Air Cargo and Miami-based StratAir. Northern Air Cargo operates planes on behalf of both businesses.

The three companies are part of privately held Saltchuk Resources, a diversified freight transportation, logistics and energy distribution conglomerate based in Seattle. In 2021 and 2022, Saltchuk’s leasing subsidiary bought seven used Boeing 767-300 passenger jets and has been sending them to a Boeing partner site in Singapore to modify into main-deck freighters for the cargo airlines.

NAS Aircraft Leasing Co. (NALC) received two 767-300 converted freighters from Boeing in January and April and moved them to a storage facility until market conditions improve, Saltchuk Aviation spokeswoman April Spurlock said in an email.

Aircraft tracking site Flightradar24 shows the airplanes are being stored in the desert at Roswell Air Center in New Mexico.

“Throughout 2023 and 2024, the global air cargo market has experienced elevated costs and shifting market dynamics which has led to depressed pricing and cargo yields,” Spurlock said. “Due to this softening of the cargo market, Northern Air Cargo has taken steps to reduce its overhead costs and increase its revenues.”

The two new cargo jets will eventually replace aircraft the company will return in the near future when their lease ends. NALC currently leases three 767s from Air Transport Services Group (NASDAQ: ATSG), according to aviation analytics firm Cirium. A decision on when to place the new 767s into service will depend on several factors, including market conditions in the Caribbean and in Central and South America, where StratAir operates, she added.

StratAir is an airfreight logistics provider that charters airlift from NAC. It currently utilizes four 767 freighters operated by NAC.

Northern Air Cargo and Aloha Air Cargo operate a total of 16 aircraft: nine Boeing 737-300/400 Classics, a newer 737-800 and six 767-300 medium widebodies. All 767s are on NAC’s operating certificate and flown by NAC pilots. Saltchuk Aviation swaps aircraft among carriers as needed. One of the 767s flown by NAC for StratAir out of Miami to places such as San Juan, Puerto Rico, and Lima, Peru, for example, has an Aloha Air Cargo livery.

Aloha Air Cargo, which had a profit of $30 million in the fiscal year that ended September 30, operates interisland routes in Hawaii and to Seattle and Los Angeles. On a combined basis, Aloha and NAC posted $18 million in net income for fiscal 2023.

NALC has taken delivery of six converted freighters so far. It has not started work on the seventh Boeing conversion yet, and there is no firm date to do so, said Spurlock.

There are costs to keep an airline dormant, such as storage, regular maintenance to ensure electrical and hydraulic systems don’t deteriorate, and special maintenance service when a plane is reactivated. But industry professionals say it is cheaper to ground an aircraft than operate it if load factors are low.

NAC also laid off three administrative personnel as part of its effort to reduce costs, said Spurlock.

The airfreight market has been steadily recovering since a 16-month downturn hit bottom late last summer. During the first quarter, cargo volumes increased about 12 percent year over year, based on the average metric from various data providers. Industry analysts expect annual growth of about 3.5 percent over 2023 levels. But cargo growth varies by region, with major trade lanes out of Asia boosting the global average. North America, for example, had the weakest growth in February of any region, according to the International Air Transport Association. Also, Northern Air Cargo, Aloha Air Cargo, and StratAir play in specialized markets that are subject to their own unique dynamics.

Saltchuk Aviation and Northern Air Cargo aren’t alone in feeling the consequences of the freight recession in 2022-2023.

Miami-based Amerijet, which competes with StratAir, recently went through a restructuring with new ownership and returned six Boeing 757 converted freighters to lessors less than two years after acquiring them. FedEx Express is parking a portion of its fleet because of soft parcel demand. Canada’s Cargojet abandoned plans to acquire eight Boeing 777s and convert them for cargo. Air Canada backed out of a deal with Boeing for two 777 factory freighters. GlobalX, a startup charter operation in Miami, is concentrating fleet expansion on the passenger side of the business, rather than cargo. And Air Transport Services Group has sharply cut back on capital expenditures and postponed sending some aircraft to conversion sites.


Editor’s Note: This article first appeared on FreightWaves.

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Insights: Number of Female U.S. Pilots at All-Time High https://www.flyingmag.com/insights-number-of-female-u-s-pilots-at-all-time-high/ Mon, 25 Mar 2024 15:59:57 +0000 https://www.flyingmag.com/?p=199102 The number of female airline transport pilots (ATPs) in the U.S. exceeded 5 percent in 2023, setting a new record.

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Editor’s Note: This article first appeared on AirlineGeeks.com.

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Southwest Halts 2024 Pilot Hiring Plans https://www.flyingmag.com/southwest-halts-2024-pilot-hiring-plans/ Mon, 04 Mar 2024 19:35:05 +0000 https://www.flyingmag.com/?p=196956 In a memo, the airline said it would be pausing pilot new hire classes in 2024.

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Southwest is the latest airline to adjust its pilot hiring plans in 2024. The Dallas-based airline is pausing all new hire classes this year, it said in a memo viewed by AirlineGeeks.

“Based on expected capacity growth beyond 2024, we’ve made the difficult decision to suspend Initial First Officer Training classes through the remainder of 2024 and defer job offers, beginning with our April classes,” the memo to prospective candidates said.

A Southwest spokesperson shared that the airline plans to pause new hire classes starting in April.

“Southwest is slowing hiring across the Company in 2024 to levels at or below our attrition rate, and we’ve adjusted Pilot hiring in line with our current business plan. Our published flight schedule is aligned with these staffing levels,” an airline spokesperson said in a statement.

The airline said it will move pilots with conditional job offers (CJO) to a so-called “deferred candidate pool,” which will be used when hiring recommences. The airline did not provide a specific date to resume hiring.

According to data from FAPA.aero, Southwest hired 1,916 pilots in 2023, one of the highest years on record for the carrier. In January 2024, the airline and its pilots – represented by the Southwest Airlines Pilots Association (SWAPA) – inked a new collective bargaining agreement (CBA) with immediate 29% pay increases.

In a different memo shared by xJonNYC on Twitter/X, the carrier said it now projects to hire 345 pilots this year.

In a Q4 2023 earnings call, Southwest CEO Bob Jordan hinted at reduced hiring plans in 2024. “…we planned in 2024 with head count flat to down as compared with year-end 2023 as we slow hiring to levels that are at/or below our attrition rate that will drive efficiency gains in 2024 with more to come in 2025,” Jordan added.

While several U.S. carriers have slowed previous record-setting hiring trends, Spirit joins Southwest in halting new hire classes altogether. The ultra-low-cost carrier (ULCC) announced in October 2023 that it would pause pilot hiring indefinitely.


Editor’s Note: This article first appeared on AirlineGeeks.com.

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Financing the Pro Pilot Dream…Without Getting Scammed https://www.flyingmag.com/financing-the-pro-pilot-dreamwithout-getting-scammed/ https://www.flyingmag.com/financing-the-pro-pilot-dreamwithout-getting-scammed/#comments Fri, 01 Mar 2024 20:49:17 +0000 https://www.flyingmag.com/?p=196850 Here’s some advice on how to negotiate obstacles that might stand in the way of paying for training.

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When I was in my early teens, I once asked an older pilot if he had any advice for someone just starting flight training, and he half-jokingly replied, “Ah, yes, have rich parents!” I didn’t quite recognize the sage wisdom of this advice and failed to follow it, having had the temerity to get myself born into a large family of rather modest means.

So I scrapped and schemed and worked a number of odd jobs through my teen years to pay for primary training and then went off to college and amassed an eye-watering level of student loan debt while completing my advanced ratings, all to graduate just after the 9/11 attacks. In retrospect I was fortunate. My seemingly poor timing put me in a very good position when the pilot shortage finally gathered steam, and as expensive as flight training seemed then, it has become even more so. It was also an era of easy borrowing and low interest rates.

If you, like me, lacked the foresight to be born into wealth and are now trying to finance your dream of becoming a professional pilot, you face greater obstacles than I ever did. Post-COVID inflation has made most things more expensive, and everything in aviation from used aircraft to engine overhauls to insurance has outpaced it. Meanwhile, interest rates have skyrocketed, with prime lending rates above 8 percent for a full year now and most unsecured loans at least 3 percent above that. Few reputable banks are offering noncollege flight training loans these days, and this void has been filled by lenders who can be described as little better than loan sharks. Predatory interest rates of 17 percent or more are common. 

Sadly, many of the flight schools appear to be willing accomplices, prominently advertising “easy” financing “as low as 4.5 percent” or some similarly unrealistic rate. Many of their partner lenders will not reveal actual rates or terms until the student has already been accepted to the training program, with a proposed start date. Every week there are posts on aviation forums by students who have just learned, shortly before starting training, that their proposed $130,000, 15-year loan will end up costing $250,000 or more, with monthly payments above $2,000. Unfortunately, many see little alternative but to sign on the dotted line, justifying the terms with optimistic career earnings projections and the perceived rush to get their ratings “before the pilot shortage is over.” It’s an effective trap for lower-income kids with a dream but not much financial literacy. 

Honestly, had I been put in that position at 18 years old, I probably would have signed on the dotted line myself. I was financially illiterate at that age too. I’ve learned a lot about money since then, though, and about the aviation industry. Let me offer some really sound advice:

  • Be very wary of any flight school that requires significant money up front. There are many cases of schools suddenly closing or otherwise absconding with students’ funds or refusing or delaying repayment of the balance after the student has flunked out or quit midway through training. At the very least, they should require no more in your account than is required to complete the next block of training (e.g, private pilot certificate, instrument rating, etc).
  • If a flight school’s preferred lender isn’t upfront about rates or terms, be very skeptical. Anyone who requires you to be accepted at the school and have a start date before revealing loan terms is likely springing a debt trap on you.
  • A hard truth of aviation is that the majority of those who start primary training quit before earning their private pilot certificate, and the attrition rate for professional programs is similarly high. Not everyone will enjoy flying, and not everyone is cut out for it. You won’t really know if it’s for you until you’re at least through primary training. Don’t make any momentous financial decisions until then.
  • Career earnings for a pilot can be high, but also vary quite widely depending on timing, keeping a clean record, maintaining a Class I medical, networking ability, and sometimes just plain dumb luck. Do not base financial decisions on best-case scenarios. And in any case, plan on several early years of earning less than $50,000, perhaps substantially less.
  • Do not, under any circumstances, accept any substantial loan at more than 12 percent interest. It will be a millstone around your neck. Unlike most debt, student loans are not dischargeable in personal bankruptcy. Having to repay a crippling amount of high-interest debt early in your career will cause a high level of stress and may well lead to career decisions that prioritize short-term earnings over long-term advancement. 
  • There was a period during the pilot shortage when it made some sense to spend more and even accept less than satisfactory loan terms in order to finish training quickly and reach the airlines ASAP. In my opinion, that period is over. Hiring is starting to return to traditional norms, and there’s even a bit of a glut of low-time pilots. It’s difficult to be hired at regional airlines at 1,500 hours right now, for example. 

All of this points to doing your training in a way that minimizes borrowing until interest rates come down. First, get as far into your training as you can while paying cash. If you have a decent job now, pay cash to train toward a private pilot certificate at a local flight school while still working. Make the decision to quit and take on debt only once you have your certificate. If you don’t have a job that will pay for primary training, put major effort into securing aviation scholarships and grants. Most aviation organizations offer them, and you should apply for every single one. Some are relatively small, but the dollars add up, and there’s a multiplicative effect as your name gets out there. In fact, this is a fantastic way to get a head start on networking.

When you reach the point that you simply have to finance your training, shop around. You’ll be surprised to find there’s a fair amount of variance among private student loan lenders—not all are loan sharks. If your intended school is pushing use of a predatory lender, I’d be very skeptical about training there. After all, when the lending is more lucrative than providing the actual training, that makes the training a loss leader—and quality is likely to suffer accordingly.

Rates vary significantly based on credit scores and history. If you know that you’ll be applying for loans in the next few years, put a strong effort into increasing your credit history and scores now. Alternatively, you’ll get better rates by having a cosigner with good credit. This doesn’t need to be a parent, but given that they’ll share responsibility for the loan with you, you had best have a good relationship and proven yourself trustworthy to anyone you ask to cosign on a loan.

The Federal Reserve is expected to start lowering interest rates next summer. As long as your lender does not tack on substantial origination fees, you may well be better off taking multiple smaller loans throughout your training, versus one big loan at the start. And while variable rate loans can be a gamble, I think they’re a decent bet now, so long as yours is adjusted monthly or quarterly and is tied to a fair index (the former standard, London Interbank Offered Rate [LIBOR], has been discontinued, and Secured Overnight Financing Rate [SOFR] is the best replacement). 

Finally, the best interest rates going these days in the U.S. are for federal direct subsidized and unsubsidized Loans. For the 2023-24 school year, they’re set at 5.5 percent for undergraduate students and 7.05 percent for graduate/professional students. The catch is these loans can only be used at nationally accredited institutions, which largely limits you to college flight programs (both four-year and two-year). With pilot supply and recruiting returning to normalcy, however, I think that college programs will become attractive again.

Even if the major airlines do not reinstate their long-standing degree requirements, a degree will always be preferred and may well make the critical difference as the hiring process becomes more competitive.

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United Announces Expansion to Flight Training Center https://www.flyingmag.com/united-announces-expansion-to-flight-training-center/ Mon, 26 Feb 2024 19:18:46 +0000 https://www.flyingmag.com/?p=196319 The is growth part of the carrier's plans to hire 10,000 pilots this decade.

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Major carriers across the country have been hiring pilots at a record number since the recovery from the pandemic. Retirements are forecasted to continue with force through the end of the decade as well, begging the question of how carriers are planning to keep up with the pace. United alone says it plans to hire 10,000 new pilots this decade.

To achieve this, the carrier announced a significant expansion to the already large Flight Training Center in Denver. The expansion is a part of the carrier’s United Next Plan to incorporate an additional building to the training complex and create room for 12 additional flight simulators. 

World’s Largest Flight Training Center

The Chicago-based carrier currently has the largest Flight Training Center in the world in Denver, holding all training events for the over 16,000 pilots flying for the global airline. With the addition of the new building, the complex spans 700,000 square feet of training space in eight buildings, housing 46 full-motion flight simulators. These high-tech simulators provide an environment for the carrier to train pilots on specific aircraft who have been hired and to keep current pilots current and proficient. 

United’s new building at their Flight Training Center in Denver. [Courrtesy: United Airlines]

While the new building has six simulators installed currently, the carrier has the ability to install an additional six, bringing the future total to 52 full-motion flight sims. The facility trains pilots 24 hours a day, 362 days a year. The carrier conducts over 32,000 training events each year and can now train 860 pilots a day. 

The new $145 million facility is the latest part in strengthening United’s foundation in Denver, having invested $370 million in the Flight Training Center since 2016. The carrier is a significant part of the local economy in the Colorado capital, spending over $44 million last year on hotel rooms alone for the pilot group and is currently estimating a bill in excess of $64 million this year. 

Into the Future

Two months into the new year, the major carrier has already hired 300 pilots after hiring 2,300 last year. This complements the airline’s plans to add 800 new narrowbody and widebody aircraft over the next decade, requiring a significant demand for qualified, professional pilots. 

While the new facility will increase training capacity for the carrier, United does not believe it will be enough for the thousands of pilots the airline plans to hire and keep proficient. The major airline bought 2 parcels of land near Denver International Airport last year, intending to build a second training center, since the current facility has run out of room to expand. The second site is slated to begin training crews in 2028.


Editor’s Note: This article first appeared on AirlineGeeks.com.

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Porter to Open New E195-E2 Crew Bases https://www.flyingmag.com/porter-to-open-new-e195-e2-crew-bases/ Mon, 19 Feb 2024 18:54:30 +0000 https://www.flyingmag.com/?p=195740 The Canadian carrier plans on opening new E195-E2 crew bases in Ottawa, Montreal, and Vancouver.

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Porter Airlines is continuing its growth with the opening of three new pilot and cabin crew bases for its Embraer E195-E2 fleet. According to an internal memo, the Canadian airline will be adding these bases in Ottawa, Montreal, and Vancouver.

Details: Porter’s Three New Crew Bases

After operating for a decade and a half out of Toronto Billy Bishop City Airport with a fleet of Dash 8 Q400 turboprops, Porter placed an order for 30 Embraer E195-E2 jets in 2021. As jet aircraft are not permitted at Toronto’s smaller airport, this move also meant that Porter was expanding to Toronto Pearson International Airport.

Porter’s 29 Embraer E195-E2 aircraft entered service in early 2023 and now serve over a dozen destinations across Canada and the United States. It’s no secret that the carrier has ambitious growth plans for its jet fleet, as it has an additional 46 jets on order.

The airline has kept its Dash 8 and E195-E2 crew bases separate. It currently has an E195-E2 base at Toronto Pearson and Dash 8 crew bases at Toronto Billy Bishop City Airport, Ottawa Macdonald–Cartier International Airport, Thunder Bay International Airport, and Halifax Stanfield International Airport.

The three new E195-E2 crew bases will be at Ottawa Macdonald–Cartier International Airport, Montréal–Trudeau International Airport, and Vancouver International Airport. Porter has been expanding its E195-E2 operations beyond its Toronto Pearson hub and the introduction of these new crew bases signals the carrier’s intention to continue to do so.

Porter CEO Michael Deluce speaks at the gate prior to the airline’s inaugural flight from Vancouver to Toronto in February 2023. [Photo: AirlineGeeks | Andrew Chen]

Porter’s Growing Jet Operations

Porter already has multiple E195-E2 routes from these three airports, including Ottawa–Vancouver, Ottawa–Orlando, and Toronto Pearson–Vancouver, and the airline plans on starting E195-E2 operations in Montreal this spring with flights to Calgary, Edmonton, and Vancouver.

The carrier has also steadily been introducing jet routes to the United States, both from Toronto Pearson and Ottawa. There are also plans for Porter to start flying from a brand-new terminal at Montréal – Saint Hubert Airport.


Editor’s Note: This article first appeared on AirlineGeeks.com.

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JetBlue Looks to Trim Workforce https://www.flyingmag.com/jetblue-looks-to-trim-workforce/ Mon, 29 Jan 2024 19:05:52 +0000 https://www.flyingmag.com/?p=194009 The airline confirmed that it is offering voluntary buy-out packages in several workgroups.

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JetBlue is looking to trim its workforce by offering so-called ‘opt-out’ packages across different workgroups. As first reported by airline industry watchdog JonNYC, the airline confirmed the buy-out offerings on Friday evening in a statement.

“We remain the industry’s only airline with a no-furlough commitment in place. We are aiming to reduce our fixed costs through voluntary measures by giving people who work in a number of corporate functions, in our airports, and in our customer support center the opportunity to leave JetBlue with a departing pay and benefits package. The program does not include pilots, flight attendants, and technicians,” a spokesperson from the airline said.

According to the internal memo shared by JonNYC, employees who take the buy-out will leave the company on Feb. 29, 2024 with up to three weeks of pay per year of service for some.

The announcement comes just days after JetBlue and Spirit lost a months-long battle with the U.S. Department of Justice (DOJ) to merge. “If JetBlue were permitted to gobble up Spirit — at least as proposed — it would eliminate one of the airline industry’s few primary competitors that provides unique innovation and price discipline,” U.S. District Judge William Young wrote in regard to the proposed merger.

JetBlue’s $3.8 billion proposal to acquire the ultra-low-cost carrier is on shaky ground as the companies consider next steps. On Friday, JetBlue said it may back out of the deal and not move forward with an appeal. In a filing, Spirit stated it saw “no basis” for termination.

An Emerging Trend

In November 2023, Spirit also offered select staff the option to depart the company with similar buy-outs. “The last few months have been a testament to our resilience and dedication as a company but we must return to profitability, which will require a series of tough decisions,” Spirit CEO Ted Christie told employees in a recent internal memo according to TheStreet.

Many U.S. airline executives have echoed similar sentiments in recent Q4 2023 earnings calls, with some expecting recruitment to be down year-over-year for most positions.

“…we plan to end 2024 with headcount flat to down as compared with year-end 2023 as we slow hiring to levels that are at or below our attrition rate that will drive efficiency gains in 2024 with more to come in 2025,” Southwest CEO Bob Jordan said during the company’s recent earnings call.

In addition, Atlanta-based Delta is cutting its pilot hiring plans in roughly half during 2024. “The intensity of hiring and training has moderated…,” the airline’s CEO Ed Bastian said during its earnings call.


Editor’s Note: This article first appeared on AirlineGeeks.com.

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