Airlines sell a commodity and buy from monopolies, i.e., the airports that provide landing rights. So it isn’t surprising they have such a tough time making money. Now they have another problem: There aren’t enough pilots and co-pilots willing to work for the low pay offered by regional carriers.
Airlines call this a “shortage” and blame a recent rule from the Federal Aviation Administration that mandates co-pilots have at least 1,500 hours of flying experience, up from 250. At the margin, the rule does reduce the number of people qualified to serve as a first officer on a plane, but that doesn’t mean there is a shortage.
Read the complete story at Bloomberg News.