For Pilots Only: May 4, 2024

Connecting the Dots

If you've been keeping an eye on the industry lately, you've probably seen the headlines about American Airlines' first-quarter losses. But let me tell you, that's just the tip of the iceberg.

In case you missed it, watch this interview with American Airlines CEO Robert Isom. We've linked it down below...

So I'm just going to say out loud what Isom and other CEOs are not saying.

While everyone else is focusing on the financial stuff, there's a much bigger story hiding in plain sight. And trust me, if you're a pilot or aspiring to be one, you're going to want to pay attention.

First things first, let's talk about Boeing.

It's no secret that they've been struggling to get their act together, and it's causing major headaches for airlines across the board. But here's where things get interesting – when the interviewer gave Isom a chance to take a swipe at Boeing and praise Airbus, Isom didn't bite. Instead, he pivoted to talk about American's relationship with Embraer.

Why does this matter?

Because while everyone else is obsessing over Boeing and Airbus, the real growth opportunities are happening at the regional level. American has a bunch of Embraer orders in the pipeline, and those planes are going to be funneled straight to the regional airlines.

Now, if you're sitting pretty at a legacy carrier, then this news probably doesn’t mean much to you.

But if you're a flight instructor, a military pilot who doesn’t meet unrestricted ATP minimums, or a lower-time corporate aviator looking to make a move, then you may need to change your flight patterns a bit.

For the past couple of years, regional airlines have been the red-headed stepchild of the aviation world. Pilots have been able to skip right over them and land cozy jobs at the big boys. But those days are coming to an end, and fast.

The competitive minimums at regional airlines are skyrocketing. Envoy, for example, used to pay for pilots' ATP CTP courses – a cool $4,200-$4,300 value. But now? Pilots are going to have to shell out that cash themselves. And when you factor in flights, hotels, and other expenses, you're looking at a $5,500 to $6,000 price tag just to get your foot in the door.

And that's just the bare minimum.

If you want to be truly competitive, you'll probably need to spend another $6,000 on top of that to get your ATP. So, we're talking $10,000 to $12,000 out of pocket for a job that, just a year ago, people wouldn't have looked twice at.

Now, I know what some of you might be thinking. "Why bother with the regionals at all? I'll just wait it out until the majors start hiring lower-time pilots again."

But here's the thing – if you're not in that sweet spot of 4,000-6,000 hours for regional and corporate pilots, or unrestricted ATP minimums for military pilots, you could be waiting a long, long time. And while you're twiddling your thumbs on the sidelines, your competition is going to be racking up 121 experience, upgrading to captain, and positioning themselves in the regionals to leap to the majors as soon as the floodgates open.

Look, I get it. The idea of shelling out thousands of dollars for a job you might have turned your nose up at a year ago is a tough pill to swallow. But the reality is, the game has changed. And if you want to stay in it, you've got to adapt.

So, what's the play here?

First and foremost, stop looking down your nose at regional opportunities.

These are competitive positions that can set you up for long-term success. If you're a flight instructor, a military pilot who doesn't meet unrestricted ATP minimums, or a corporate aviator with lower competitive qualifications, it's time to start polishing up those applications and preparing to fight for these spots.

And if you're lucky enough to land one of these coveted regional gigs?

Buckle down and make the most of it. Rack up that 121 time, upgrade to captain as soon as you can, and keep your eyes on the prize. You'll be positioned to pounce on those opportunities like a cat on a laser pointer.

Now I know this might not be the news some of you wanted to hear. But the truth is, the aviation industry is changing, and those who refuse to change with it are going to get left behind.

The days of skipping the regionals and walking straight into a legacy gig are over. It's time to roll up your sleeves, put in the work, and earn your spot at the top.

And if you're feeling overwhelmed or unsure of your next move, don't hesitate to reach out. The team here at Raven is always ready to help you navigate these choppy skies and chart a course to success.

If you want to get into the regionals you can always schedule a free strategy call with my team HERE.

So, there you have it, folks.

The real story behind American Airlines' Q1 losses, and what it means for pilots at every stage of the game.

It's not always pretty, but it's the reality we're dealing with. And the sooner you accept it and adapt, the better positioned you'll be to come out on top.

Stay sharp out there, keep your eyes on the horizon, and never stop pushing for greatness.

Fly safe,

James

2024 Job Fair/Industry Expos