University Gateway Program Objective

JetBlue

University Cape Air Gateway Express Jet Program

UND ERAU Auburn Jacksonville University Gateway Program Objective

To provide a defined pathway for AABI-accredited program aviation students to become pilots at JetBlue Airways, allowing them to continually develop skills and professionalism with an understanding of JetBlue’s values through regional airline experience, mentoring and internships

Known training, experience and a common culture Why the Gateway Program? • There have not been pathways to a major airline that provide ALL of the following: − Foundational Learning at an AABI- Accredited Program − Program entry in Sophomore Year − Structured Flight Training − Industry Internships − Flight instructor experience − Part 135 Airline Flying experience − Professional Mentorship • JetBlue helps develop their future pilots Current Model to Become an Airline Pilot

College? Part 61 or 141 Hour Building

No Blueprint or Defined Path Instructor or Part 135 Training Complete at 300 hours. Where does a pilot get valuable flight time in next 1200 hours and at what cost?

Corporate or Regional Possibly a number of Major Right Seat airlines

3-7 years of Unknown Experience 1-2 Years - No Feedback or Mentoring After 11-15 years •What values are expected of the pilot? •How do we account for quality of training? •How do we know the pilot’s experience? JetBlue’s University Gateway Program Defined Path for a Professional Pilot Freshman Sophomore Junior Senior 800-1200tt Year Year Year Year

AABI Acceptance‐ University Accredited Mentor Internship Degree/ CFI Program Ratings Assignment

Year 1 Year2 Year 3 Year 4 Year 5 Age 23 1500 Hrs.

Regional Partner – Jet JetBlue Cape Air Captain Transition Final 2‐3 Years 2400 Hrs. Course Interview

Year 6 Year 7 Year 8 Age 27 4000 Hrs. JetBlue’s University Gateway Program A Defined Path for a Professional Pilot

Freshman Sophomore Junior Senior Year Year Year Year 800-1200tt

AABI Acceptance‐ University Instruct at Accredited Mentor Internship Degree/ Program Assignment Ratings University

Year 1 Year2 Year 3 Year 4 Year 5 Age 23 1500 Hrs. Regional Partner – Jet Cape Air Transition 2‐3 year as a Captain Course JetBlue OR Final Regional Partner Cape Regional Partner Interview Air Express Jet 1 year as a Captain 2 Years Age 27 4000 Hrs. Year 6 Year 7 Year 8 Benefits to Students and Universities

• Student Benefits − Defined Path with clear and obtainable goals − Valuable flight time as a CFI and strong interpersonal skills − Decision making and airmanship as Captains at Cape Air − Option to fly a larger regional Jet with Express Jet • University benefits: − Fostering Relationships with Industry − Recruitment and marketing to future students − Value of AABI Accreditation − Retaining flight instructors to teach the next generation Benefit to Airline Partners

• Regional partners − Provides a steady stream of qualified and motivated pilots − Enhances safety by attracting pilots from top universities − A relationship starts early - you know a future employee’s values • JetBlue Airways − Mentors nurture development of “Values-Minded” professionals − Allows continuous evaluation and observation of pilot candidates during their professional development − Provides metered flow of qualified and experienced pilots for JetBlue to support recruitment goals Program Success

• Program launched in 2007 − 147 pilots in the program − 8 Gateway Pilots are now JetBlue Airways First Officers − 20+ Gateway Pilots flying for Cape Air − Over 75 internships completed at Cape Air and JetBlue

Real Success of the Program: Developing and sustaining a relationship with a young aviator early in his or her career, providing mentoring and guidance to develop a professional and values-minded airline pilot Thank You An Investigation of the United States Airline Pilot Labor Supply

UND: ERAU: James Higgins Daniel Friedenzohn Kent Lovelace Elizabeth Bjerke UNO: Nick Lounsberry Rebecca Lutte

UAA: SIU: Bruce Chase/ LeTourneau Univ. Sam Pavel

AABI: Numerous Industry Representatives Paul Craig/ MTSU

• Request from Industry Stakeholders Group • Provide data to GAO if they embarked on a study • More data on the effects of FOQ • Recent hiring trends with the regional airlines

Other than consumer Consumer Decision decision (Risk vs. Reward)

New Commercial Pilots Foreign Pilots Return to Home Country New Non‐ Airline Pilots (Military, Corporate, New Certified Flight Instructors etc.)

US and Foreign Citizens Completing the Commercial Airplane Written 7000 50%

45% 6000 40%

5000 35%

30% 4000

25%

3000 20%

2000 15%

10% 1000 5%

0 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012

US Citizens Foreign Citizens Percentage Source: FAA Knowledge Test Data

Copyright 2013 © By the Authors New CFIs – Using the supply model, newly trained CFIs will become available to help mitigate supply losses – Using the most recent data from the UAA/AABI Survey (n=1636), only 53.67% of CFIs intend to fly for the airlines as a long‐term career goal – After certification, it is assumed that an additional 2 years of flight instruction will be needed to achieve restricted ATP minimums • 1000 hours • Effects of Cross‐Country Requirements 5 to 1 • Effects of overall flight training activity

3500 35000

3000 30000 Pilots 2500 25000 Pilots of

2000 20000 Number

Number

1500 15000 Yearly Cumulative

1000 10000

500 5000

0 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

Yearly Shortage Cumulative Shortage

– Potential deficit of 35,059 unless mitigation strategies are put in place – Considers pilots leaving the industry and pilots joining the industry on a yearly basis – Holds all other Commercial and ATP pilots constant – Does not consider impact of: • Flight‐Time/Duty‐Time Rules • Foreign Airline Hiring • Potential PL 111‐216/FOQ Rule impact of an additional candidates abandoning airline career

Copyright 2013 © By the Authors Potential PL 111‐216/FOQ Rule impact of an additional candidates abandoning airline career • UAA/AABI Survey – 1,600+ participants – 40 different education/training institutions – Up to an additional 32.53% candidates may rethink their plans to become an airline pilot – 8.32% of candidates have already changed their minds to pursue an airline career due to this law

• 205 responses • 80% indicated they planned to obtain or have a CFI certificate • 57% indicated they were pursuing an airline career

• What would it take to convince you to consider an airline career? • Major Themes – Salary – Lifestyle/Family/Location – Work Schedule – P.L. 111‐216/1500 hour requirement

Copyright 2013 © By the Authors Mitigation Strategies • Increase the supply of CFIs willing to pursue an Airline career greater than the current 53.67% – Actively recruit and persuade new pilots to consider an airline career – Focus group survey to determine particulars of life style issues and salary issues – Offer defined career paths (Gateway/Pathway/Pipeline) – Faculty Development Program • Reduce the cost/debt of obtaining pilot Certificates/Ratings – Loan consolidation – Supplement financial aid payments – Salaries

Copyright 2013 © By the Authors Mitigation Strategies • All Parties need to participate to promote a more positive image of an airline career – Education – Airlines – Labor • ALPA ACE Program – Pilots promoting the profession • How we look • How we fly • How we interact with others

“Outreach”

Captain Darrin Greubel ExpressJet Airlines • An Industry at a crossroads……. - Regulation -Growth - Retirement • Awareness and Understanding - Strength in numbers – Pilot Supply Consortium - Communicating with political leadership - FAA / GAO / House / Senate / OMB

27 • A better understanding……. - Pilot supply verses pilot demand - Constraints - The need for an objective “all encompassing” study • GAO Study • University research and investigation • Private studies

28 • Education – AABI / UAA –WATS / RATS –NTAS –RAA – Supply and Demand Symposium

Questions?