Pilots getting a big pay boost at yet another regional airline
Another regional airline is giving its pilots a significant raise.
CommutAir, a regional that is partially owned by United Airlines and flies exclusively for the Chicago-based airline, is hiking its starting pay for first officers from $51 per hour to $72 per hour and for captains from $84 per hour to $100 per hour.
With its move, CommutAir becomes the fourth regional airline to dramatically increase its pay rates for pilots this summer, following the three regionals owned by American Airlines. While CommutAir's rates are not as high as the rates at American's regionals, which start first officers at $90, they're longer term — in force for the duration of the airline's flying agreement with United, which ends in 2026. American's rates are temporary through August 2024.
Additionally, CommutAir will now pay its first officers a $25,000 annual retention bonus, with a $50,000 retention bonus for the airline's captains. Those bonuses are paid out in monthly installments.
CommutAir's move comes as a pilot shortage is acutely impacting the regional airline industry and driving airlines to increase pay in order to compete for a smaller pool of pilots. Things have gotten particularly bleak for regionals during the COVID-19 pandemic, as pilots at larger mainline carriers took buyouts and early retirement packages, leaving a large void of pilots for the airlines to fill. A primary source of pilots to fill that void comes from regional airlines, where pay and quality of life tend to be lower than at the major airlines.
CommutAir in particular is in a unique situation, with significant growth in recent years.
The airline only began flying jet aircraft — the Embraer 145 — in 2016. In 2020, it became United's sole operator of the type when United ended its flying agreement with longtime partner ExpressJet. (ExpressJet later operated as an ultra-low-cost carrier, aha! On Tuesday, the company filed for Chapter 11 bankruptcy and announced it was shutting down.)
"We went from a small regional airline to a bigger one in the middle of the pandemic," CommutAir CEO Rick Hoefling told TPG in an interview.
CommutAir, which has its roots in the Northeast, now operates at three United hubs: George Bush Intercontinental Airport (IAH) in Houston, Dulles International Airport (IAD) near Washington, D.C., and Denver International Airport (DEN).
Due to the shortage of pilots, CommutAir began sending aircraft to the desert for storage late last year. But its fortunes have reversed in recent months, with an increase in flying earlier this year, Hoefling said.
"So with this new deal, we think that we're going to be poised and set up to obviously support United and their mainline hiring targets through a better letter of agreement with our pilots to allow us to continue to grow our block hours and do the right things here at CommutAir," Hoefling said. Block hours are the aggregated amount of an airline's flying time, measured from when an aircraft leaves the departure gate to when it arrives at the arrival gate and is a common metric to measure the size of a regional airline.
Related: How a pilot shortage could leave travelers with higher fares and fewer options
The letter of agreement for the pay increase was reached between Hoefling and his management team, and the union representing CommutAir's pilots, the Air Line Pilots Association. Despite some high-profile tensions between the Regional Airline Association, which represents the interests of CommutAir and other regional airlines at the national level, and ALPA's national leadership, which denies the existence of a pilot shortage, Hoefling had kind words to say about his bargaining partners.
"There's a significant amount of trust between leadership and ALPA here," Hoefling said. "I think in the company, we try to be very thoughtful."
In a statement, CommutAir pilot union head Capt. Jeffrey Suttler implied that the big raise was a long time coming.
“In yet another example of airlines stepping up to the plate to attract and retain experienced, well-trained pilots on the flight deck, CommutAir pilots will finally receive the compensation and quality-of-life contract improvements they are due,” Suttler said. “For years, regional airlines have tried to skimp and save on the most important safety feature on any flight – two highly trained, fully qualified pilots. Today’s agreement at CommutAir is an acknowledgment that airlines must offer competitive packages and work rules to attract and retain pilots.”
CommutAir — and two other regional airlines — participate in United Aviate, a flow program that places regional pilots at mainline United. A fourth airline, Air Wisconsin, is leaving the program after it announced this week that it will begin flying exclusively for American Airlines starting next year.
"That's a benefit for us," Hoefling said. "I'm not so sure how United views that ... but for CommutAir, a smaller pool and industry-leading wage, at least from the United Express partners currently, I think that really sets CommutAir up for success."
With CommutAir's growth comes a (slightly) new name and a new visual identity. CommutAir will rebrand to CommuteAir in the middle of next month and unveil a new logo, Hoefling said.
"We want to keep the excitement alive here with a new brand and a fresh look," he said, speaking of the company's momentum.
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
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- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
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- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.