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Building Tomorrow's Pilots

Canadian flight schools anticipate continued growth

Written by James Careless   
308-pilotIn an industry sometimes known for its doom-and-gloom stories, it almost seems wrong to say that the future looks bright. But according to the people who run Canada’s flight schools, this is truly the case: The future actually looks, well, bright!

“The demand for pilots is growing in Canada,” says Adam Penner; operations manager of Harv’s Air Pilot Training School in Steinbach, Manitoba. “In fact, the market is the best it’s been for five years.”

“My son will be ready to look for a pilot’s job next year, and I’m sure happy that he’ll be hitting the market at this time,” says Mike Doiron, CEO of the Moncton Flight College. “His job opportunities will be better than they would have been for the past four or five years!”

Why the good news?

Why is the job market looking up for pilots; a fact that is pushing up enrollment at Canadian flight schools? There are many reasons, say the people on the flight line.

First and foremost is the ageing of the baby boomers. As experienced pilots approach retirement, their airline employers are reaching into the ranks of smaller carriers for replacements. In turn, the smaller carriers need to replace the pilots who are moving up, and so it goes throughout the employment chain to the entry, where new pilots get their feet in the door.

Add the improving health of the airline industry, “which is stronger than it’s been in the last five years,” says Jeannette Baker, chief flight instructor at Principal Air in Chilliwack, BC, and the hiring trend is solid. “We know that Air Canada will be hiring quite a few pilots in the years ahead,” she says. “All those pilots have to come from somewhere; it’s like a chain that reaches down to the lowtime and entry-level pilots.”

“WestJet and CanJet are also hiring,” Doiron says. “So is Air Canada Jazz, and the smaller regional carriers as well. As a result, I’ve lost nine flight instructors since June 2005 who’ve all gone off to fly.” Losing instructors to the airlines is an occupational hazard for any flight school, but Doiron doesn’t worry about it. “We’ve always got new talent coming up the ranks,” he says. “However, what is telling is the instructor turnover rate, because it is related to how many pilots are being hired. In the good times, for instance, instructors will stay around for about eight months before being hired to fly. In bad times like the last few years, it’s taken up to 15 months for them to find pilot jobs. Well, the turnover rate is back down to eight months, which says something about how much hiring is going on.”

“I don’t like to brag, but we are achieving 100% job placement for our graduates,” says Larry Loretto, owner of Ottawa Aviation Services. “Some have been lucky and found jobs in minimal time. As for our instructors? With all the hiring going on, we’ve seen 100% turnover in the last year.”

Besides the Canadian carriers, the Europeans are also attracting talent from Canada. This is why a lot of Canadian pilots are now getting certified to fly in Europe, Doiron says. “I personally have a lot of pilots that fly for various Canadian airlines who are looking at moving overseas as well. There are just a lot of opportunities there!”

China is another country that is hiring a lot of Canadian pilots as it struggles to expand and upgrade its airline industry. “China has a big need for pilots, but there’s very little civil aviation there to provide the training they need,” says Principal Air’s Baker. “So we’re seeing a lot of Chinese nationals come over here for training, then head back to China to fly. As well, two of our good friends were recently hired by the Chinese Government to train pilots for that country, and to help hire Canadian pilots to work there as well.”

One interesting trend is for Canadian-born children of immigrants to take their flight training here, then head back to their parents’ countries of origin to take airline jobs. “We had one student whose parents are from Kenya who saw opportunities in that nation, says Ottawa Aviation’s Loretto. “So he took his flight training here, then got a job flying for a Kenyan carrier. I am training someone whose parents are from Tanzania who intends to go there to fly for an airline; a couple of students from Japan who are doing the same, and several with roots in China who will fly there once their training is complete. None of these people are international students; they are all Canadians.”

This said, entry-level pilots aren’t necessarily going directly into airline work. “In fact, the vast majority of our students seem to be finding jobs in nontraditional positions, such as flying float for native bands in isolated communities,” Loretto says. “Most new pilots aren’t ending up flying that big silver tube in the sky, at least not at the outset.”

Still, the trend is clear: Canadian flight schools are seeing an increase in enrollment thanks to growing demand for pilots globally. Add the fact that many countries don’t have the schools and civilian aircraft to train these pilots, and the result is that more international students are coming to Canada for schooling. “Take India: They need pilots, but their domestic flight school infrastructure is pretty poor,” says Harv Air’s Penner. “As well, in some countries it can take up to three years to earn a pilot’s licence. We can typically help a student achieve this in a year or less.”

Finally, the advent of internet shopping has brought many students to Canada, thanks to the wealth of Canadian flight schools who have taken the time to build decent Web sites. Put it altogether, and the news is definitely good for the Canadian flight school industry.

CHALLENGES
There’s an old saying that there isn’t a silver lining out there that doesn’t come with a cloud attached, and the Canadian flight school industry is living proof of this truism. Despite the good news, there are a number of factors that continue to challenge the industry’s profitability and, in the case of some schools, economic survival.

The biggest threat appears to be rising costs. Be it fuel, landing fees or insurance, rising costs are making it tougher for flight schools to hold the line on their tuition fees and maintain their fleets at the same time.

Of the three, rising fuel cost appears to be the biggest challenge. “Although gas prices have dropped since hitting record highs a few months ago, the cost of aviation fuel hasn’t come down,” says Baker. “As a result, fuel that cost $1.07 a litre in January now costs $1.41. When you’re talking about training aircraft, you’re talking about equipment that burns $50-$60 a hour.”

Landing fees are another cost challenge for flight schools; especially because the amounts charged vary from airport to airport; apparently based on administrators’ whims. “Some of these airports see dollar signs every time they see an airplane,” says Penner. “They figure that if a guy can afford an airplane, he can afford landing fees.”

“There’s no level playing field when it comes to landing fees,” Loretto says. “We’re lucky to have a good relationship with airport management, but other schools aren’t so lucky. Their airport administrators don’t understand small business, and they don’t pay attention to the fact that fuel and insurance rates have gone up. In fact, insurance rates have gone up hugely, which hasn’t helped.”

Put it altogether, and rising costs are forcing schools to cut back where they can. In particular, it’s the non-safety maintenance issues such as aircraft appearance that are allowed to slide, says Baker. “We rent planes at $85 an hour, with $40 going to gas and another $40 to necessary maintenance. As a result, there’s not much left for items such as new paint jobs, carpet replacements, and the like.”

THE BOTTOM LINE
The price pressures cited by Baker and others have put the screw to Canadian flight schools, forcing some out of business while the survivors look for savings wherever they can.

Still, for the schools that remain in business, the future looks promising. Small wonder: Increased pilot hiring attracts new blood to the aviation industry, which needs flight training to get employed. Even with the challenges that confront them, Canada’s flight schools are poised for profitable times ahead.