Presenter Email
kiern4fd@erau.edu
Location
Jim W. Henderson Administration & Welcome Center (Bldg. #602)
Start Date
8-15-2017 9:00 AM
End Date
8-15-2017 10:00 AM
Submission Type
Presentation
Keywords
Pilot Turnover, Airline Costs, Labor Costs, Labor Turnover
Abstract
Controlling costs is a critical ingredient in achieving profitability in the airline industry. Typically, labor costs are the second highest cost category for airlines. Some components of labor costs, such as pay and benefits, are easy to calculate. Turnover costs, however, are not easy to calculate, and are often underestimated. This paper builds a model for examining turnover costs for pilots in Part 135 carriers, and tests the model empirically in a Part 135 carrier. The model provides a framework to assist airlines in estimating turnover costs for pilots. The case study of a Part 135 cargo operator showed that the turnover rate for pilots was 46%, compared to the average across all jobs and all industries of 15%. Pilot turnover costs for the carrier were shown to be $17,405, compared to the average across all jobs and all industries of $13,996. Per capita turnover costs for the carrier represent 43% of the average pilot’s salary of $40,000. This information can be used by airlines to make cost benefit judgments about retention efforts.
Presenter Biography
Dr. Kristy Kiernan graduated from Brown University with a bachelor of science in neuroscience, then served for 13 years in the United States Coast Guard. After earning her wings, she flew Falcon 20s on search and rescue, drug interdiction, and maritime law enforcement missions in the Caribbean and the Gulf of Mexico. While in the Coast Guard, she graduated from the Navy's Aviation Safety Officer School and USC's Accident Investigation course, and served as an Aviation Safety Officer. She also taught Crew Resource Management and became an instructor pilot. Her last assignment in the Coast Guard was as the Standardization Pilot for the Falcon community. She earned her Ph.D. in Aviation from Embry-Riddle in July 2016 with a dissertation entitled "The Effect of Generation on Retention of Women in Aerospace and Industry". She is now a full time faculty member at ERAU Worldwide, and the associate chair of the Master of Science in Unmanned Systems program. Her research interests include humanitarian applications of unmanned systems, human factors in unmanned systems, and diversity in the aerospace workforce. She lives in Fairhope, Alabama with her husband and four children.
Original PowerPoint, Full-res
Included in
Business Administration, Management, and Operations Commons, Finance and Financial Management Commons, Human Resources Management Commons
Calculating the Cost of Pilot Turnover
Jim W. Henderson Administration & Welcome Center (Bldg. #602)
Controlling costs is a critical ingredient in achieving profitability in the airline industry. Typically, labor costs are the second highest cost category for airlines. Some components of labor costs, such as pay and benefits, are easy to calculate. Turnover costs, however, are not easy to calculate, and are often underestimated. This paper builds a model for examining turnover costs for pilots in Part 135 carriers, and tests the model empirically in a Part 135 carrier. The model provides a framework to assist airlines in estimating turnover costs for pilots. The case study of a Part 135 cargo operator showed that the turnover rate for pilots was 46%, compared to the average across all jobs and all industries of 15%. Pilot turnover costs for the carrier were shown to be $17,405, compared to the average across all jobs and all industries of $13,996. Per capita turnover costs for the carrier represent 43% of the average pilot’s salary of $40,000. This information can be used by airlines to make cost benefit judgments about retention efforts.
Comments
Presented during Session 4: Pilot Supply Problem