The Impact of Commercial Aviation on Naval Aviation
NAVAL POSTGRADUATE SCHOOL MONTEREY CA MONTEREY United States
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For the first time in over 15 years, commercial airlines are hiring large numbers of pilots and threatening retention rates for naval aviation. One major concern for Navy leadership is if there is a major difference in compensation for aviators who transition to the airlines after 10 years when compared to aviators who make that transition after retirement. The other concern is how the new blended retirement plan will impact compensation and ultimately retention. Using net present value, this research discounted career earnings back to the point at which a naval aviator chooses to stay in the service or seek commercial employment. It was revealed that aviators who decide to leave the service after 10 years stand to earn significantly more money than those who remain until retirement. Aviation Career Continuation Pay was analyzed and alternate payment plans were studied to provide options for the Navy to shrink the gap in compensation. Ultimately, if the Navy is willing to spend more money on compensation, they can close the compensation gap and hopefully prevent future retention problems.