Industry Group Estimates As Many As 400,000 Jobs Could Be At
Risk
The Air Transport Association of America said Thursday that a
proposed FAA rule changing the number of hours that pilots are
allowed to fly will not improve the industry's strong safety
record, and could lead to as many as 400,000 lost jobs. The ATA
said carriers support changes to this outdated rule that would
improve safety. However, the current proposed rule ignores proven
science and operational data, especially in the areas concerning
schedule reliability, flight-time limits and limiting extensions of
duty periods. In addition, this proposal does not address the very
different working environments of cargo and charter pilots compared
to passenger airline pilots.
"We share the administration's goal for a new rule that will
lead to a real improvement in flight safety, but the FAA proposal
will not accomplish that objective. This rule will drive job loss;
airlines will be forced to eliminate up to 27,000 direct airline
jobs – 5 percent of their work force – and cut service
to small U.S. communities. These job losses are staggering,
particularly at a time when unemployment persists above 9 percent
and job creation is at the top of the agenda for the President and
Congress," said ATA President and CEO Nicholas E. Calio. "No
industry is more committed to safety, and because of the work of
industry, government, manufacturers and supporting businesses, air
travel is the safest form of transportation in the United
States."
According to an Oliver Wyman economic analysis submitted to the
White House, the proposed rule would eliminate between 12,000 and
27,000 direct U.S. airline jobs, and has the potential of
eliminating almost 400,000 related industry jobs. The rule will
drive job loss because airlines will be forced to reduce service
and cut jobs in order to absorb the new costs the rule imposes.
Based on industry models, ATA estimates that the
rule will lead to a $2 billion annual increase in airline costs
– much higher than government predictions. Airlines will not
be able to pass on these costs to customers. When costs soar,
airlines cut capacity. This situation will be no different and
airlines will be forced to cut routes, in particular service to
marginally profitable and unprofitable cities – many of them
serving small and rural communities that depend on air
transportation to connect to the rest of the country and world.
Reducing capacity and service means fewer jobs.
ATA has stated previously that the proposed rule fails to meet
the criteria for rulemaking laid out by the White House. In light
of the new data showing likely job cuts, the ATA calls on the FAA
to revise the rule based on science and operational experience and
put forward a rule demonstrated to improve safety.
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