Staffing and retention: Current challenges the business aviation industry is facing

By: Melanie Daglish, senior aviation underwriter at ITIC

The charter and business aviation industries face significant challenges regarding staffing, particularly in hiring and retaining qualified personnel. As the industry is highly regulated, the first challenge is employing the right person for the job. Post-pandemic trends have exacerbated these issues, leading to events like the "Great Resignation" and the general shortage of skilled workers in aviation. Furthermore, the need for continuous, accredited training to ensure that staff remain competent and adaptable to industry changes is vital in the industry.

Recruiting and retaining the right talent

One of the primary difficulties is finding and keeping highly skilled professionals. The competition for these roles is fierce, especially from commercial airlines, which often offer higher salaries and more structured career paths than the business aviation sector. While providing unique perks like working with high-end equipment and travelling to exclusive locations, business aviation also requires flexibility and adaptability, which can be demanding on employees.

Retention is equally challenging due to the demanding nature of the work and the lure of other industries. During the pandemic, many employees reconsidered their career priorities, placing a higher value on work-life balance, compensation, and workplace culture. Additionally, with a significant portion of the skilled aviation workforce nearing retirement, there is an urgent need to bridge the generational gap and ensure that essential skills are passed on​. Knowledge transfer and succession planning are vital for the continuation of the industry.

One of the notable findings from a recent  European Business Aviation Association (EBAA) report is that although various job opportunities in the airline industry are well-known, most students lack familiarity with ‘business aviation’. Moreover, many students hold a stereotypical view of the industry, perceiving it as closed-off, challenging to enter  and environmentally unfriendly. There is a need for the industry to better explain and educate that business aviation primarily serves the global ecosystem by offering a tailored transport solution to business professionals, government officials, and organisations.

Additionally, from a career perspective, it is essential to emphasise that business aviation is accessible to everyone and can provide enticing career growth opportunities.

The EBAA reported that many students showed enthusiasm for its unpredictable nature after being introduced to the business aviation sector. This was seen as a captivating feature compared to working for airlines, where flight routes are predetermined far in advance. For example, utilising the diverse range of aircraft types, clients, and destinations could be a winning strategy for companies looking to hire young pilots. This diversity could be portrayed as a feature that keeps the work interesting and provides opportunities to gain experience in various aspects of aviation.

A welcome development in business aviation this year is the new BizAvEnables (#Bizavenables) campaign from the UK trade association, the British Business and General Aviation (BBGA).

This social media campaign aims to highlight various positive aspects of the business aviation industry that have been overlooked. Through video content on Instagram, LinkedIn, TikTok, and YouTube, the BBGA is using individuals from across the industry to showcase business aviation's efforts towards more sustainable aviation and its under-recognised contributions to the economy and society. While targeting young potential future employees, the BBGA is also addressing misperceptions held by many.

The role of continuous training

Continuous, accredited training is a crucial tool in addressing the staffing challenges in the aviation industry. These programmes, which provide standardised, high-quality instruction, are essential for meeting global regulatory requirements, such as those from the NAA and EASA. In the highly technical field of aviation, initial training is just the beginning—ongoing education is essential to keep up with new technologies, regulations, and safety protocols ​.

ITIC recently had a claim underscoring this where an aviation consultant with the wrong qualifications was assigned to carry out a series of borescope inspections on re-delivery to the lessor.

 The technical aviation consultant entered a contract with a lessor for the borescope inspection of 37 engines. The engines were attached to a commercial widebody aircraft, which had been re-delivered by a major aircraft operator to the lessor. They were then stored in “as is where is” condition.

Upon completion of the inspections, but before the consultant issued any “Release to Service” paperwork, the lessor became aware that while the technical consultant did have qualifications to perform borescope inspections generally, they did not have the specific qualifications needed for these engines.

They were, therefore, unable to issue the “Release to Service” of the engines. This meant that the lessor needed to have the inspections performed again and that all the substantial costs of carrying out these inspections were wasted. There was also the potential that the lessor could lose the sale of an asset due to the delay.

The lessor’s claim against the inspector was originally US$ 641,071. ITIC negotiated this down to US$ 417,878 in full and final settlement.

Another claim ITIC handled involved an air charter broker who provided a quote for a charter flight that included a flight attendant. However, after the charterer agreed to the quote, the broker realised that the operator's contract did not confirm the presence of a flight attendant; it was only assumed by the broker. The broker had assumed that a mid-size jet would include a flight attendant. After negotiations between the operator and the charter broker, it was determined that the operator had no flight attendants available for the flight. As a result, the broker had to find a flight attendant and cover the additional costs.

The link between training and retention

Continuous training also supports retention efforts. By investing in their employees' development, companies signal that they are committed to their staff's career progression, which can be a decisive factor in retaining skilled workers.

This is crucial in a competitive labour market where professionals are often tempted by more lucrative or structured roles in other sectors. Offering high-quality training and clear career pathways can help mitigate this risk and encourage long-term commitment from employees.

Companies also recognise that recruiting and training new employees to replace departing ones incurs substantial costs and disrupts operations, making retention strategies more cost-effective.

Moreover, rapid technological advancements and industry innovations necessitate ongoing training to keep employees abreast of the latest developments and best practices. Training and development initiatives enable aviation companies to adapt to evolution in technology, operational procedures, and safety protocols. This, in turn, enhances operational efficiency and competitiveness.

Reputation is key to success

A business's reputation is crucial, and frequent employee turnover doesn't just lead to increasing costs for a company; it can also harm the company's reputation. A high turnover rate may make potential candidates think the company is unstable or that its employees are unsatisfied. Also, the employees are the face of the business and often handle frontline issues. To maintain a positive reputation, it's crucial to invest in strategies that will help retain employees and reduce turnover costs in the long term. For example, a report by Cornell University revealed that in the wider airline industry, high employee turnover can cause customer satisfaction scores to drop by as much as 5%.

Addressing recruitment, retention and training challenges requires competitive compensation, flexible work arrangements, and a solid commitment to continuous, accredited training. This ensures that aviation professionals are meeting regulatory requirements and developing the skills needed for long-term success in the industry.

Staffing matters; surround yourself with clowns and you’ll be in a circus!

What does ITIC look for when underwriting risks?

1. Recognise that experience counts.  ITIC’s underwriting process involves reviewing the CVs of those at a senior level within the company to check that they have sufficient knowledge and experience to be at the helm.
2. Training, training, training.  The aviation industry sets continuous training requirements for those who work within it.  Make sure that you have a comprehensive training programme in place for all your staff and – just as important – keep those training records up to date!
3. Embed good communication throughout the company, from the senior managers down to the front line.  Your staff are the company’s #1 asset and good internal communication procedures are essential to maintaining good levels of staff retention.  A company with a solid, established team are a far better professional indemnity risk than a company who is constantly training new staff. ITIC does look at staff numbers and seniority as part of the underwriting process.
4. Finally, be aware of the training and accreditation opportunities that exist outside the company.  For example, the Air Charter Association provides excellent training for air charter brokers, and accreditation agencies such as Argus International provide widely accepted benchmarks for aircraft operation and charter.