Here’s one idea proposed in Congress to address the pilot shortage that is adding to travel delays – increase the profession’s mandatory retirement age.
Currently, the Federal Aviation Administration requires commercial pilots to retire by age 65. But Republicans last week introduced legislation that would increase the cutoff age by two years, to 67.
Increasing the pilot retirement age will help curb the recent spate of airline flight delays and cancellations, say the bill’s main sponsors, Sen. Lindsey Graham (R-SC) and Rep. Chip Roy (R-TX).
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
One recent study shows that North America will be short 12,000 pilots by next year — 13% of how many will be needed.
During the early months of the COVID-19 pandemic, when travel volumes collapsed, airlines offered early-retirement packages to pilots and other employees. With air travel now rebounding, airlines are scrambling to replace those pilots, as well as those who are just now turning 65.
The U.S. has raised the mandatory pilot retirement age before, when the FAA upped it to 65 from 60 in 2007. Graham noted that when the age was increased 15 years ago, "the sky did not fall."
The bill is backed by the Regional Airline Association, the regional airline industry’s lobbying group. Regional airlines have been hit hardest by the pilot shortage. The National Air Carrier Association, which represents low-cost carriers, small cargo airlines and charter services, also supports the measure.
But the Air Line Pilots Association, International, which represents 65,000 pilots at 40 U.S. and Canadian airlines, strongly opposes the bill. The group, which has downplayed the severity of the pilot shortage, says upping the retirement age would increase costs for airlines and introduce unnecessary risks by allowing older pilots to fly.
Transportation Secretary Pete Buttigieg also says he’s not in favor of the hike in pilots' retirement age, saying in July that the current retirement age is in place "for safety reasons.”
The legislation so far has only Republican cosponsors, so odds of it passing this year, with Democrats in control of the House and Senate, aren’t good. But if the bill doesn’t advance this year, look for Graham and Roy to quickly reintroduce it next year should Republicans gain control of Congress after the November elections.
-
What Not to Do if an Employee or Loved One Is KidnappedBusinesses need to have a crisis plan in place so that everyone knows what to do and how to do it. Sometimes, calling the authorities isn’t recommended.
-
Why You Shouldn’t Let High Interest Rates Seduce YouWhile increased interest rates are improving the returns on high-yield savings accounts, that may not be an effective place to park your money for the long term.
-
How Three New Supreme Court Rulings Impact Your MoneySupreme Court U.S. Supreme Court decisions could directly impact your bank account privacy, student loan payments, home equity, and property taxes. Here’s what you need to know.
-
Are Student Loans Being Forgiven or Not?Student Loans The House and Senate voted to repeal President Biden’s student loan forgiveness plan, but does it even matter?
-
Etsy, eBay, PayPal Want IRS 1099-K Relief for Online SellersIncome Tax Companies like eBay, Etsy, and PayPal want Congress to raise the $600 reporting threshold for IRS Form 1099-K to give relief to millions of sellers who use their sites.
-
Student Loan Forgiveness Blocked For Now Due to Court RulingsBiden's student loan debt forgiveness program is on hold until the U.S. Supreme Court weighs in.
-
Student Loan Refunds Are Real, But You Might Not Be Eligiblestudent loans Since President Biden announced student loan debt relief, there has been a lot of talk about student loan refunds, which surprisingly have been around for a little while.
-
Student Loan Forgiveness: What You Need to KnowStudent Loans Millions of people with student loans will not receive Biden's student loan forgiveness due to a U.S. Supreme Court ruling.
-
Forgiven Student Loan Debt Will Be Tax-FreeCoronavirus and Your Money President Joe Biden’s $1.9 trillion stimulus package lays the groundwork to forgive some student loan debt.
-
Renters: Help Is On The WayCoronavirus and Your Money Renters worried about being evicted from their homes or apartments can breathe a sigh of relief as the new $1.9 trillion stimulus package sets aside much needed funds for them to tap.
