Many of America’s airlines are in a world of hurt due to a pilot shortage, and they aren’t the only ones.
On July 5, Scandinavian Airlines, which does significant business in America, filed in New York for Chapter 11 bankruptcy to reorganize after it tried and failed to reach an agreement with its pilots’ union and the pilots voted to strike.
The Scandinavian bankruptcy is slightly more complicated than simply “the pilot shortage,” but the trail of breadcrumbs is hard to ignore. “We have finally realized that SAS doesn’t want an agreement,” said Martin Lindgren, SAS Pilot Group chairman. “SAS wants a strike. We hope we will be able to return to the negotiating table and meet, but it requires that the employer makes a move.”
The reasons for this possible shortage differed by region. In America, the anticipated problems were “an aging workforce facing mandatory retirement, fewer pilots exiting the military, and barriers to entry, including the cost of training.”Demand grew modestly by 4.1% in 2020 before the pandemic shut down much of the world, according to Statista. However, after lockdowns, demand plummeted by 65.9%.
Airlines offered early retirements to many pilots as a cost-saving measure. Additionally, many pilots didn’t clock in enough hours and thus faced the prospect of mandatory retraining.
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