last article on the Trump Effect
was a discussion on the U.S. Pilot
Shortage that is being labeled
a National Crisis.
I recently attended a meeting
in Washington, D.C., hosted by
the Chief of the U.S. Air Force
with the major airlines, regional
airlines, civil air patrol, the
airline unions, A4A, an airline
training university, industry
experts, congressional staffers,
and leaders of the other military
All agreed that this is a serious
problem that must be solved.
On The Table
The airline industry attendees
came up with many useful suggestions
on ways to mitigate the problem,
including getting more young people
interested in flying, ways to
help pay for the very high cost
of U.S. commercial airline pilot
training, and suggestions on changes
in the existing requirements.
They suggested forming industry
committees to research the various
suggested methods and come up
with a plan to minimize this problem.
You may ask why this is being
called a National Crisis.
In my view, it is because of the
effect this shortage is having
and will have on the U.S. commercial
airline industry. It may put the
U.S. airline industry again in
the decline, which we saw just
a few years ago and resulted in
flight crew and other staff layoffs,
bankruptcies, and consolidation.
Almost every carrier reported
that pilot costs were growing
by a large percentage due to this
Pinched As Well
A similar shortage of licensed
aircraft mechanics was also noted
at the gathering. As these two
labor groups get contract pay
increases, the flight attendants
as well as the other unionized
airline employees will also demand
This will no doubt result in a
large cost increase to the U.S.
carriers. In addition, as the
dollar increases its value because
of the Trump Effect, it will result
in the U.S. carriers having an
even higher cost compared to their
U.S. open skies and airline pooling
agreements could accelerate this
The end results may be that the
large U.S. international carriers
may not be able to compete profitably
with their foreign competition.
This could lead, once again, into
a loss situation with airline
layoffs and possible further consolidation
of the U.S. airline industry.
You may say this is very unlikely,
but can our industry afford to
take the chance?
Put simply, to grow the airlines
need more competitive cost trained
To achieve this, the U.S. industry
needs to work together with the
U.S. government to solve what
is emerging as a national crisis
for our vital airline industry.
Boesch started his career
in global transportation
and logistics in 1965 working
for Seaboard World Airlines.
He later joined Flying Tiger
Airlines and Emery Worldwide.
Mr. Boesch then left Emery
to become Pan American World
Airways’ Senior Vice
President where he headed
both Passenger and Cargo
Sales and Operations. He
left Pan Am to lead American
Airlines’ Cargo operation
and retired from AA in 1998.
Under his direction American
became a world leader in
the air cargo and logistics
Boesch was part of the extensive
on site planning and support
of the Iraq drawdown, involvement
with the Afghanistan operations,
and has worked on all aspects
of the Civil Reserve Air
Fleet (CRAF) from both an
airline and government standpoint.
Boesch has also served as
Chairman of the International
Air Transport Association
(IATA) Cargo Executive Subcommittee
in 1996 and 1997, Vice Chairman
of IATA’s Cargo Committee.
Mr. Boesch served on the
Board of Directors of Air
Cargo Incorporated, Air
Cargo International, The
International Air Cargo
Association (TIACA), Envirotainer,
Cargo Logistics Solutions,
Deutsche Post/DHL Global
Mail, al Seqir and consulted
for major U.S. companies
including Flight Safety.
Boesch is the recipient
of numerous awards including
the Lifetime Air Cargo Achievement
Award, the Ellis Island
Medal of Honor and various
awards from the U.S. Department
Boesch is presently continuing
his work for the U.S. Government
and heads up The Council
For Logistics Research.
To Read Part 1 of This
Series, Click Here
To Read Part 2 of This Series,
To Read Part 3 of This Series,
To Read Part 4 of This Series,
To Read Part 5 of This Series,
To Read Trump Effect—India
Walks Softly Carries Big Stick,
To Read Trump Effect—Implications
Of A Trump Trade War, Click Here
To Read Trump Effect—Trump
Across The Pacific, Click Here