November has finally arrived and it means thousands of people in the United States are out of jobs. The CARES Act (The Coronavirus Aid, Relief, and Economic Security) was passed by the Congress and signed into Law by President Trump on March 27th, 2020. This over $2 trillion economic relief package delivers on the Trump Administration’s commitment to protecting the American people from the public health and economic impacts of COVID-19. U.S. citizens and legal residents received checks from the US Department of The Treasury. Part of the deal is that employers cannot reduce work forces until September 30, 2020 if employers accept the offers from the government. Section 4112 of the Coronavirus Aid, Relief and Economic Security Act (CARES Act) authorizes the Treasury Department to provide up to $32 billion to compensate aviation industry workers and preserve jobs.
No More Pilot Shortage
During the pandemic, 4 Regional Airlines in the United States shut down their businesses. Trans States Airlines based in Missouri, Ravn Airlines based in Alaska, Compass Airlines based in Minnesota, and last but not least ExpressJet based in Georgia. All of the above airlines were relying on contracts from Legacy Airlines also called Major Airlines such as United Airlines, Delta Airlines and American Airlines. However, during the pandemic period, major airlines were also suffering from the economy crashes and lack of travellers. All of the airlines were reporting passengers traffic down to 10%. Some flights were departing with only 1 or 2 passengers with capacities of 160+ seats on the coast to coast flights. Some international flights were carrying only less than 5 to 10 passengers with capacities of some 300+ seats to international destinations. With that said the Major Airlines had to cancel most of the contacts from smaller Regional Airlines to compensate for their balance sheets.
Regional airlines closures
Trans States Airlines was a regional airline owned by Trans States Holdings and headquartered in Bridgeton, Missouri. It is among the first regional airline to shut down operations. In March 2020 the airline announced shut down operations on April 1, 2020 due to the impact of the Covid-19 pandemic in aviation. 350 pilots have lost their jobs due to the airline ceasing operations.
Ravn Airlines is a regional airline headquartered in Anchorage, Alaska. It was the second Regional Airline to shut down its entire operations on April 5,2020 due to the Covid-19 pandemic in aviation. In July 2020 Ravn Airlines was sold to Float Shuttle, Inc., a commuter service based in Los Angeles. 70 pilots have lost their jobs due to the airline ceasing operations. However, since the airline was sold and now is back in flying again.
Compass Airlines was a regional airline headquartered in Delta Airlines Building C at Minneapolis- Saint Paul International Airport in Fort Snelling, Hennepin County, Minnesota. It was the third regional airline to shut down its entire operations on April 7, 2020 due to the Covid-19 pandemic in aviation. 581 pilots have lost their jobs due to the airline ceasing operations.
ExpressJet Airlines was a North American regional airline headquartered in College Park, Georgia that flew under the United Express brand for United Airlines and was a partially owned subsidiary of United Airlines. On September 30th, 2020 the airline ceased entire operations due to the Covid-19 pandemic in aviation. 1375 pilots have lost their jobs due to the airline ceasing operations.
As of October, 2020 many other airlines have announced furloughed pilots and other employees as Federal relief ended. Government agreed to aid as part of the Coronavirus Aid, Relief, and Economic Security Act ( Cares Act ). It was conditional that the carries did not lay off workers until 1st October, 2020.
Now what is the future of aviation after 2020? There are a lot of different opinions about the future, some say the travel industries will pick back up really fast once the vaccine becomes available, but some say the Coronavirus pandemic has totally changed the whole world, people will travel a lot less from now on.
What’s next for aspiring pilots?
No matter what people say or think, for those of you who still want to become a pilot, this is the best time to start your training and start building flight times. Once the air transport industry becomes better, airlines will start hiring pilots again. Pilots still require to retire at age 65, meaning airlines still need to replace retired pilot positions. While there are a lot of unknowns on how recovery of the air transport industry will take place or when exactly it could happen, it is natural to feel worried and frustrated. It may be difficult to think of the pilot job market with positivity. But be optimistic and be ready, obtain all the certificates, flight times, experience. Try to stay positive and work on a future in aviation. Don’t give up because of the pandemic situation and all the layoffs. Keep working toward your dreams. Once the air transport industry is back to normal you will be all ready to get hired. Be patient and think outside the box. Be safe and stay healthy.
Fly Safe! See you in the Sky!
