ToThePain
Well-known member
- Joined
- Aug 28, 2005
- Posts
- 83
I don't think that it will be as bad as "just add 5." For example, guys will still be forced to retire for medical reasons, and the likelihood of someone having to retire medically in any given year will increase as one gets older. Further, I bet many guys will consider retiring when they hit the minimum social security retirement age of 62. That 2 year delay will help them with their monthly PBGC benefit as well if they have one coming to them. And of course, there will be some guys who just won't work that long, period.
I'm not trying to paint a rosy picture for hiring when this age 65 deal kicks in because the hiring situation will worsen I'm sure. And I also assume that any hope of a "pilot shortage" and wages coming up in response to that smaller supply will probably be dashed for a few years. But I bet age 65 slows hiring down for closer to 2-3 years vs. 5 years.
I believe that you are correct. Airlines that still have a lump sum will not be affected as much as the ones that do not have a lump sum. The new pension laws will seriously affect the amount paid out on those lump sums, diminishing returns each year. At worst I see some of the pilots here at CAL staying on till 62 when they can draw health care and leave. The majority of those pilots have been saving their sick time for a health coverage bridge for an age 60 retirements. Of the people that stay most will probably call out sick at least once a month causing the companies to continue hiring even if they aren't expanding.
CAL does have a pretty aggressive expansion plan (especially international) with lots of planes coming and is still understaffed. I don't have a crystal ball but would guess that hiring will continue.
Planes coming: 30 737 NGs for 2008 (retiring I believe 17 737-300's), 24 737NGs and 2-3 787s for 2009, and 10 737 NGs and 6 787s for 2009-2012.
Retirement numbers at CAL(total pilots@4897):
2008:193 ----2013:180---- 2018:186
2009:200 ----2014:197---- 2019:154
2010:190 ----2015:168---- 2020:155
2011:207 ----2016:191---- 2021:162
2012:211 ----2017:179---- 2022:164