Airlines, Pilots Ready for Higher Retirement Age
By Trebor Banstetter, Fort Worth Star-Telegram, Texas
Dec. 13–At age 59, American Airlines pilot Bill Barzelay is rapidly approaching mandatory retirement age, but he just doesn’t feel ready for a slower lifestyle.
“The thought of staying home and playing golf all the time just isn’t that appealing,” he said. “I’d just as soon keep flying.”
The pilot, who flies from Dallas/Fort Worth Airport and lives in Colleyville, may get his wish. A bill approved by both houses of Congress late Tuesday would raise the mandatory retirement age for airline pilots from 60 to 65.
The new age would put the United States in line with international rules, which were changed last year to allow pilots to fly up to 65.
The bill, which is expected to be signed by President Bush, could have implications for airline operations, costs and retirement benefits. It’s also a mixed bag for pilots — while allowing work, and earnings, to extend another five years, it could also slow career advancement for younger pilots and decrease the number of available jobs. North Texas’ airlines were split on the issue.
The measure was supported by Dallas-based Southwest Airlines and the union that represents its pilots. It was opposed by American Airlines, based in Fort Worth, and its pilots’ union.
“We supported our pilots’ position on this, but Congress has spoken, and we’ll comply with the law,” said Jeff Brundage, American’s senior vice president of human resources. He said the airline has been evaluating the implications of the change, and that “we don’t see that it will cause any immediate upheaval.”
Lloyd Hill, president of the Allied Pilots Association, which represents American pilots, sent a letter to Bush Thursday asking for a veto.
“Mandatory age 60 retirement for our nation’s commercial airline pilots has proven to be a highly effective safety regulation since its establishment in 1959,” he wrote. He said that the union’s members had opposed the change by a 7-1 margin.
Southwest pilots, meanwhile, praised the bill’s passage.
“Experience counts,” said Carl Kuwitzky, a Southwest pilot and president of the Southwest Airlines Pilots Association. “This legislation will enhance safety by ensuring that we keep our most experienced pilots flying longer.”
In a prepared statement, Kuwitzky said the measure levels the international playing field, because “pilots over 60 years of age working for foreign carriers have been able to fly in U.S. airspace, a privilege that has been denied to the most experienced American pilots.”
Bill Schwetke, a Baltimore-based Southwest pilot, said he narrowly escaped a forced retirement. He turns 60 on Jan. 1.
“I’m definitely not ready to retire, and so I’m looking forward to another five years at Southwest Airlines,” he said.
The bill would require pilots older than 60 to fly with younger co-pilots on international routes. That will make scheduling a bit more complicated for airlines, like American, that have large international networks.
And the addition of older pilots would likely have implications for American’s pension plans. But Brundage stressed that it could be years before the impact can be assessed.
“This is something that’s going to happen very slowly,” he said.
The change in retirement age could also soften the impact of a growing pilot shortage nationwide. The shortage hasn’t had much impact yet on major carriers like American and Southwest, but smaller regional airlines have reported difficulty recruiting and keeping younger pilots.
Shares of AMR Corp., American’s parent (ticker: AMR), closed at $16.85 per share Thursday, up 22 cents. Southwest shares (ticker: LUV) finished at $13.39, up 7 cents.
TREBOR BANSTETTER, 817-390-7064
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