Question

Critically analyze the following statement with views of your own: “There is no substitute for an airline pilot: Someone has to fly the plane. Therefore, an increase in the wage of airline pilots will not change the number of pilots used by the airlines.” (400-500 words)

Thank you in advance for not copying other's answers.

Answer 1

the concept and the given scenario is realistic in nature.the demand for and requirement of pilot is inelastic of the price paid in consideration known as wages.

we can classify in two time frame-

SHORT RUN-

• the given situation holds true for short run and that is also with some constraint.in general the salaries demanded by the pilot would not be considered if the asked salary is too much.in short run if they wanted to raise their salary then the airlines would have to agree with their respective demand.but if it exceeds the capacity of the airlines then the airlines may ask the aviation sector and labor law concern authorities to intervene in the matter and thus only nominal salary would be paid to them.moreover at the time of appointment the contract can be made concerned with the increment and violation of this would be subject to the violation of the service norms.in this way both the parties can be treated equally and benefited.
• this is true that in short run the pilots are in a dominate role but there are some laws and bodies for the prevention of airlines against the manipulation and exploitation.if airlines doesn't provide employment then the pilots won't be able to get the employment either in the short run.then they would be reducing the utilization of their license.ultimately both the parties would have to mutually agreed on a particular equilibrium point.
• as discussed earlier laws and government rules also influence the trade practices like increment of wage and violation of contract which may lead to lose their respective license and flying privileges.

LONG RUN-

• in the long run,if the wages are too high then the students and people would be encouraged and interested to opt the pilot course to get the license which would also provide a great rate of return on investment.thus the number of pilots would be more than requirement and now the airline can negotiate due the excess availability of pilots and therefore in the long run there is availability of substitution.
• therefore in the long run there would be equilibrium in the demand of pilot professionals concerned with the airlines.it means if the wages would be high there would be more supply of the pilots professionals and if the wages are low then the supply of professionals would be less because fewer people would find it interesting and there would be less scope after investing so much resources in the course and study.