Being a pilot just isn't what it used to be

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Being a pilot just isn't what it used to be
By Marilyn Adams, USA TODAY
By Anne Ryan, USA TODAY

After Sept. 11, United Airlines pilot Mike Hamilton had to "bump down" to
the smaller 757 and take a pay cut.   Few people symbolize power like an
airline pilot. The commander of the ship. The final authority in the air.
The person in whose hands 300,000 pounds of metal, people and fuel can
somehow lift off a runway and soar. But today, pilots who have trained all
their lives to keep everything under control find that little about their
world is in their grasp. Nearly 8,300 of the nation's 95,000 pilots are
furloughed, and that number is bound to rise. Pilots at United Airlines and
US Airways, both in Chapter 11 bankruptcy reorganization, are taking pay
cuts of 30%, 40% or more, and other airlines are expected to follow.
Furloughed pilots lucky enough to get hired by a discount airline, cargo
carrier or start-up face pay cuts of tens of thousands of dollars a year.
Retired and retiring pilots who expected six-figure pensions fear they now
might not get enough to live on.

Then there's the unspoken anxiety about things more ominous than mechanical
problems or storms. Since the Sept. 11 terror attacks, many airline pilots
work behind bulletproof cockpit doors and undergo intensive airport
security checks that make some feel like criminals. Soon they may be asked
to carry guns in case they have to repel terrorists. "Pilots need to do
what's necessary to help the company," says United 1st Officer Mike
Hamilton, who has taken two pay cuts in the past 18 months that reduced his
income 40%, or $70,000. "The frustrating part is the company keeps asking
for more. You don't know what's coming around the corner." Hamilton, 31,
who has two young sons and a stay-at-home wife, flew Boeing 777s from
Chicago's O'Hare airport until the terrorist attacks. Soon afterward, when
United had to park some planes to cut costs, Hamilton was "bumped" out of
the 777 by seniority rules. He moved down in aircraft size and salary to
the smaller Boeing 757 because a pilot who had worked for United longer bid
for his job.

Then, when United filed for Chapter 11 bankruptcy protection in December,
the pilots union agreed to an immediate 29% across-the-board pay cut to
help the carrier, costing Hamilton again. If nothing else goes wrong, he
could still gross $100,000 this year. But if the United States attacks
Iraq, United employees are almost certain to be hit with more pay cuts and
furloughs. And, as the airline restructures, he could get bumped down
again. He has refinanced his house and stopped family vacations, and his
wife, Mary, a former event planner, is considering returning to work. He
knows it could be worse. "There are guys who are out altogether," he says.
 From pilot to wedding planner Furloughed pilot Bill Sigler is one of those
guys. After flying along the East Coast for US Airways for three years,
Sigler, a 35-year-old first officer, was laid off in January 2002. With US
Airways in bankruptcy court and thousands of pilots laid off industrywide,
he says he doubts he'll ever go back.

Sigler, who earned about $96,000 a year at US Airways, considered applying
to the biggest airline still hiring, discount giant Southwest Airlines.
Even if he could get hired, he says, he would make about a third of what he
was earning at US Airways. Because of the airline industry's strict
seniority system, Sigler would have to start at the bottom of a new
airline's pay and seniority scale, despite years of experience. So these
days, Sigler helps his wife, Jodie, with a wedding planning business she
started after his furlough. The business could gross about $40,000 this
year. On the side, he does commercial landscaping for clients near his home
in Pembroke Pines, Fla. The family fired their nanny and stopped dining out
and taking vacations. They expect a second child in June. "I would like to
go back to flying, but I know there's not much chance for the next few
years," he says.

Sigler's friend, fellow 737 pilot Lou Gavin, has 19 years' seniority at US
Airways and is still working, flying as many as five or six trips a day. He
has taken a 33% pay cut, and the airline has asked for an additional 5% if
there's war in Iraq.
But Gavin is looking ahead, wondering whether the company will even survive
to fund his pension when he retires in 12 years. Before the Chapter 11
filing, Gavin was eligible for a $96,000-a-year pension. If the bankruptcy
court judge lets US Airways jettison the pilots' pension plan as it has
proposed, Gavin would get only $29,000 a year from a quasi-government-run
fund that insures private pensions. The judge has asked a mediator to
settle the matter. "In my mind, this is the toughest time" pilots have ever
faced, says Capt. Duane Woerth, president of the national Air Line Pilots
Association, which represents 63,000 pilots nationwide. "We've never as an
industry had so many problems across the board. The joy of flying that
brought so many people to an aviation career is becoming so much hassle."

At United, Capt. Herb Hunter, a union spokesman, estimates that furloughs
and aircraft retirements have forced a third to half of the 9,500 working
pilots to change aircraft models, move their families to a different city
or start commuting to another city. "It's emotional turmoil, but we don't
have any choice but to get through it," he says. Hunter, who has worked at
United for 24 years, was flying 777s from Miami to Argentina and Brazil
until United cut costs by switching those routes recently to a smaller
plane. Hunter was faced with changing planes and taking a second pay cut,
moving to Chicago to continue flying 777s internationally, or commuting to
Chicago for every trip. He chose to commute, going up the day before on a
United flight. Pilots' salaries and pensions aren't the only things under
attack. CEOs of money-losing major airlines have called on Congress to
rewrite federal law so that airline employees can't strike for better
contracts. A communities' coalition funded by the airlines' trade group
also wants the law changed, saying airline workers' right to strike
threatens air service to cities. These groups want an arbitrator to make
final decisions on contract disputes.

Some costly "work rules" are also being squeezed out of pilots' labor
contracts. One example: How sick time is paid. At the biggest airlines,
pilots who call in sick on the first day of a three-day trip get paid for
the whole trip whether they are sick three days or not. If a trip happens
to fall during a scheduled vacation, a pilot at some airlines can get paid
for the trip even though it was never flown. "The big carriers have
incredibly archaic work rules," says Randy Babbitt, a former Eastern
Airlines pilot who's now president of Eclat Consulting, which advises
airlines and unions. "A lot of these rules came from the 1950s and '60s,
when the airlines were regulated" and fares were set by the government,
almost guaranteeing profits. One pilot calling in one sick day and getting
paid for three may not seem like much. "But if an airline has 10,000 pilots
like American or United, and each one calls in sick once a year, that's a
lot of money," Babbitt says.

Some experts think highly paid pilots are themselves partly to blame for
today's wrenching adjustment because during the boom years, unions demanded
hefty raises knowing airlines feared a strike. But those recent raises
followed the lean early '90s after the first Gulf War, when airlines were
failing and furloughing and many workers' paychecks were frozen or cut.
Though this industry is cyclical, no one foresaw the huge drop in demand
and revenue wrought by the combined blows of Sept. 11, recession,
competition and security hassles. A not-so-glamorous life Babbitt says the
stereotype persists that most pilots earn close to $300,000, travel to
glamorous destinations and work two weeks a month. "That icon we're talking
about is a very small percentage of the total," Babbitt says.

Only the most experienced pilots flying the largest planes on international
routes have lives resembling that. "Everyone thinks you are laying over
(between trips) in Acapulco," he says. "The reality is you are laying over
in Gary, Ind., in a Holiday Inn." Allegheny Airlines pilot Bruce Freedman
knows that life well. Freedman, 48, has worked for the US Airways Express
regional carrier for 20 years, flying turboprops to small and midsize
cities like Buffalo and Syracuse, N.Y., and Burlington, Vt. "People think
we're making $250,000 a year and we're off half the month, but people here
make $40,000 to $60,000," he says. "People at the regional airlines are
actually everyday people." Between cuts in pay and benefits, Freedman says,
he's lost 15% of his compensation. And pilots there worry how Allegheny,
which flies only turboprops, fits into a reorganized airline built around
regional jets. US Airways plans to phase out prop planes by 2008.

There are few options when furloughs come. Few of the big jet airlines are
hiring; most have pilots of their own on furlough and may lay off more.
Only a handful of passenger carriers, like America West and Southwest, are
hiring, as are a few regional carriers, such as SkyWest. Furloughed pilots
from US Airways and Continental are being offered jobs flying smaller
planes for smaller wages at regional-airline subsidiaries. The big-jet
carriers that are hiring are mainly discounters whose pay scales fall well
below Delta's, for example, and which don't offer advancement to wide-body
planes or international routes.

AIR Inc., a pilot career service, says fewer than 5,900 pilots got airline
jobs last year, less than a third of the number in 2000. As the bankruptcy
cases at United and US Airways slog on, slashing pilots' paychecks and
changing their lives, pilots at American, Delta, Northwest and other
troubled carriers are watching. Their time is coming. American is
negotiating pay cuts with its unions, saying it soon may be in Chapter 11,
too. "I'm worried about my family, about furloughs and pay cuts," says
American pilot Greg Hudson, 33, who flies from Miami to the Caribbean and
Central America. Hudson, an ex-Marine who fought in Kuwait, has worked much
of his life to get where he is: pumping jet fuel to pay for lessons and
flying aging cargo planes to build experience. "We all know it's coming,
and we're trying to mentally prepare ourselves," he says of the changes. "I
love being up in the sky, the view out the front window at 30,000 feet. I
don't want to lose it."


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