Malaysia Airlines hurt by global pilot shortage
KUALA LUMPUR: Malaysia Airlines Bhd said overcapacity has led to a worldwide pilot shortage, further exacerbating the situation and hampering the carrier’s growth.
Group chief executive officer Captain Izham Ismail said the national airline was affected by the global pilot shortage, which had led to operational constraints.
“Pilot constraints are of particular concern for the airline’s narrow-body B737800 fleet, where the shortage is most acute,” he said.
Malaysia Airlines said its stringent criteria for qualifying captains, which was higher at 4,500 flying hours, compared with the industry average of 3,500 flying hours, was further impacting constraints.
“Proactive steps are being taken to address the issue as quickly as possible, which includes merging and upgrading flights to be operated by our wide-body aircraft to help cover gaps caused by the shortage of our B737 pilots,” he said.
Malaysia Airlines said the airline had put in place an extensive pilot training programme, implemented in August last year, alongside recruitment drives.
“Pilot training does, however, take time, but our new cadet pilots are gradually coming online,” it said.
Farnborough based Aero Professional Ltd aviation market intelligence specialist Filippo Gallo said Malaysia was likely to be the second-largest aviation market in Southeast Asia region after Indonesia, banking on more than 500 aircraft orders between this year and 2028.
“Malaysia is very promising if airlines and the government work together in creating synergy. The potential of exploiting economic opportunity will be above the average for the entire region in Southeast Asia,” he said.
Gallo added that it was important for Malaysia to be highly competitive, citing that the Southeast Asia region would require between 6,000 and 9,000 pilots in three years.
“The United States and Europe are the matured markets while Southeast Asia is a strong growth region and a developing market. There is a room to grow.
Gallo said the rapid growth of the Middle Eastern carriers and subsequent boom of the Chinese aviation sector had drained the availability of local skilled personnel in Southeast Asia.
Gallo said it was crucial for airlines to strategise its business segments from corporate strategy, network planning, fleet management, procurement and human resource.
“About 60 million passengers flew in and out of Malaysia last year. If they (airlines) don’t have enough pilots, they will incur losses mainly in the number of passengers.
“When they (airlines) receive aircraft, they need to train the flight crews,” he said, adding that airlines needed to invest more on local pilots because it was cheaper than hiring foreign pilots.
Gallo said there was a high demand for experienced pilots globally and airlines usually offered higher salaries to attract talent.
He said Asean-based carriers were expected to recruit between 1,500 and 2,000 pilots annually to cope with the projected aircraft deliveries.
The forecast could increase up to 30 per cent, considering the standard staff turnover cycles, according to Aero Professional’s Asean Market Analysis and Pilots Outlook 2018-2028.
Gallo said Asean carriers would incur several millions in annual losses if airlines did not solve the pilot shortage, which would result in hundreds of aircraft grounded.
“The role of aviation recruitment agencies will play a key role moving forward since the respective airline human resource capabilities are limited at present, despite some leading carriers have partially addressed the problems by establishing their own training facilities,” he said.
The pilot labour supply has continued to tighten globally as the regional markets that have relied heavily on recruiting pilots from outside their home locations are increasingly seeking to recruit, train, and develop locally sourced pilots.
The American airspace company said the Asia-Pacific region would lead the worldwide demand for pilots, with a requirement for 261,000 new pilots over the next 20 years.