CEO Panel Discussion: Session I, Regional Airline Business and Trends, 2022 RAA Leaders Conference
RAA airline CEOs share their views about future business, new fleets and other trends that could shape the direction of theΒ ...
Chief Executive Officer, President & Director, Skywest
Search every verified Russell Childs interview, podcast appearance, and on-the-record quote β each transcript cross-checked by AI and human review to confirm speaker identity. At the 2022 RAA Leaders Conference, Russell Childs, CEO of SkyWest, discussed several challenges facing the regional airline industry. He stated that the primary issue is a shortage of captains, not first officers, and that SkyWest fails hundreds of pilots annually from its training program. Childs argued that the 1,500-hour flight requirement for pilots is misunderstood by lawmakers, as unstructured hours are not equivalent to airline training. He also noted that SkyWest has been forced to wind down service to some communities due to expiring Essential Air Service grants and staffing constraints. Childs said that SkyWest is exploring the formation of a charter business, though it would not lower pilot requirements. He described the financial pressures of rising pay rates and borrowing money to prepare for industry evolution, calling sustainability "a story yet to be written." Childs emphasized that demand for regional flying is high, particularly in small communities, but predicted that without regulatory change, the pilot shortage could last more than ten years, with a return to 2016β2018 staffing levels taking a long time.
“Particularly for SkyWest we're very excited about our pipeline and people coming in the front door, but it is the captain upgrade β not so much a first officer issue β it's a captain availability issue right now.”
“We've announced this tremendous wind down to some cities that we've spent tens of millions of dollars investing in β when we have an Essential Air Service grant that is expiring and we're looking at our staffing levels we don't have much of a choice but to respond to the expiring grant, and from that perspective that's...”
“SkyWest fails hundreds of pilots a year out of our training program β 1500 hours is an application requirement, not a training requirement β and there's not enough appreciation on Capitol Hill about the difference between towing a banner for 1,500 hours and a specific airline training program.”
“We're looking at using some assets to form a charter business; however the pilot requirement will be the exact same at SkyWest β you have to pass the exact same test β it's not cheaper and it's probably going to be more expensive, but it is a unique opportunity because there's tremendous demand in that space.”
“We've been borrowing money a little bit this last year just to be prepared for this because of the evolution of getting to these pay rates β these rates are deeply concerning for us; ASM and payroll costs are going through the roof and sustainability is a story yet to be written.”
“A thousand hours of 'poking holes in the sky' is not the same as a structured program β lawmakers believe they're getting another thousand hours of training but that's a misunderstanding; those unstructured hours create bad habits and are not equivalent to airline training.”
“Demand for regional flying is off the charts β small communities are where people want to live now after the pandemic, and air travel is vitally important to stabilize and grow those local economies.”
“Without regulatory change I think this is going to last for a while β SkyWest is planning on this lasting more than ten years; the finish line depends on what you want us to get back to, but returning to a 2016β2018 state will take a long time.”
RAA airline CEOs share their views about future business, new fleets and other trends that could shape the direction of theΒ ...
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