Airlines merged through mergers and acquisitions (M&A) are recently grappling with disputes over how to set pilot seniority. After the pilots' union at Korean Air Lines moved to industrial action over the seniority system following its integration with Asiana Airlines, AIRZETA Co., which acquired Asiana Airlines' cargo division, is also experiencing conflict between pilots and management.
According to the aviation industry on the 30th, the Korean Air Lines pilots' union held a strike authorization vote on the 9th and approved it by a majority. The union decided to take industrial action after clashing with management over how to set the seniority system following the integration with Asiana. Seniority refers to a term that means internal class year and rank order within an airline.
The pilots' union at AIRZETA Co., a cargo-only airline, also filed for relief with the Incheon Regional Labor Relations Commission on the 16th after failing to narrow differences with management over the seniority issue. Since acquiring Asiana's cargo division in February, AIRZETA has been locked in ongoing conflict as pilots formerly with Air Incheon, its predecessor, and management have been unable to bridge differences over resetting the pilot seniority system.
Many interpret the decisive reason the seniority system for pilots has become a sensitive issue in airline integrations as economic matters such as pay and compensation tied to captain promotions. The pilot community's unique culture of strict hierarchy is also cited as a reason unions and management are locked in sharp conflict over how to set seniority.
Each airline has its own pilot hiring standards and seniority systems. According to the aviation industry, full-service carriers (FSCs) generally have stricter pilot hiring and captain promotion standards than low-cost carriers (LCCs). Even within the same FSC or LCC category, companies that are larger and have higher brand value are known to require higher standards.
At Korean Air Lines, pilots must have more than a total of 1,000 flight hours to be hired. To move up from first officer to captain, various conditions apply, including more than a total of 4,000 flight hours as a pilot, at least 350 takeoffs and landings after joining, at least five years after being appointed first officer, and a separate promotion test.
At Asiana Airlines, one can join after accumulating more than a total of 300 flight hours as a pilot. The conditions for promotion to captain—more than a total of 3,500 flight hours as a pilot, at least four years after being appointed first officer, and at least 250 takeoffs and landings—are less strict than at Korean Air Lines.
The two companies are also said to treat military-trained pilots differently. At Korean Air Lines, the gap in the time to captain promotion between military and civilian pilots is relatively short at about six months, whereas at Asiana Airlines, those with military backgrounds are known to be promoted roughly four years earlier.
For this reason, the Korean Air Lines pilots' union is pushing back, saying it faces a high risk of disadvantage if the two companies' seniority is simply merged without properly reflecting differences in hiring and promotion standards. They say cases are inevitable in which, despite accumulating more flight hours and longer tenure than Asiana Airlines pilots, they fall behind in captain promotions and end up receiving lower pay.
The AIRZETA Co. pilots' union is also resisting over post-merger seniority out of concern it could lose out in captain promotions. After taking in Asiana Airlines' cargo division, 225 Asiana-affiliated pilots joined, raising the likelihood that AIRZETA-affiliated pilots with relatively shorter experience will face delays in promotion.
Differences in pilot hiring and promotion standards based on airline size and stature are the same for LCCs.
Korean Air Lines, in acquiring Asiana Airlines, also took in its affiliates AIR BUSAN and AIR SEOUL. The two carriers are set to merge with Jin Air, which is already affiliated with Korean Air Lines. As pilot seniority has come under scrutiny during the recent Korean Air Lines–Asiana Airlines integration, some expect similar issues could recur when the three LCCs are combined in the future.
However, the captain promotion standards at Jin Air, AIR BUSAN and AIR SEOUL do not differ as much as those at Korean Air Lines and Asiana Airlines. All three airlines are known to require the same minimum 3,500 flight hours to move up to captain. Still, because there are differences in other detailed requirements, many say management must properly coordinate pilot seniority in advance during integration to minimize dissatisfaction and friction among pilots.
Many interpret pilots' focus on promotion to captain as stemming from the large differences in compensation and treatment between captains and first officers.
According to the aviation industry, as of last year, captains at Korean Air Lines earned 250 million won to 300 million won annually, while first officers earned about 100 million won to 150 million won. Other airlines differ in amounts, but, broadly, captain salaries are known to be about two to 2.5 times those of first officers. In addition, other compensation, such as annual performance bonuses, also differs greatly between captains and first officers.
There is also a clear difference in position between captains and first officers in the chain of command. Because captains serve as the final person in charge of flight safety (PIC, pilot in command), they have absolute authority in the cabin. First officers assist the captain and are tasked with checking various functions and conditions needed for flight.
Although the culture has become considerably more horizontal compared with the past, when obedience to superiors was strong, the role of first officers remains limited, and they must follow the captain's instructions in all decision-making processes.
The aviation industry says pilots cannot help but be sensitive about seniority because, depending on how standards are set during integration, those with longer flight experience could remain first officers while those with less experience move up to captain.
An official at a major airline said, "On the last month, there was even an incident in which a first officer, whose dissatisfaction had built up after failing to be promoted to captain for a long time, killed a captain, showing just how sensitive and important seniority is in the pilot community," adding, "It will not be easy for airlines in the midst of integration to quell pilots' grievances in a short time."