Tempted by higher pay, better working conditions and promotion prospects, many pilots in state-owned airlines want to move to the private sector.

Cheng Weihao, a senior pilot at China Eastern Airlines’ Shanghai Branch told Beijing News that since 2005 increasing numbers have been handing in their resignations.

In August 2005 the General Administration of Civil Aviation of China (CAAC) partially opened up the aviation industry to competition from the private sector. The subsequent growth of private airlines created a job market for pilots.

But regulations issued in May 2005 stipulated that pilots must obtain permission from their current employers before handing in their resignations.

The CAAC impounds the licenses of pilots who resign, and airlines can demand compensation of 700,000 to 2.1 million yuan (US$87,500 to 300,000) for their investment in pilot training.

Some state-owned airlines are not satisfied with the current rules. China Eastern Airlines has issued its own even more restrictive regulations.

CAAC rules mean pilots who stop flying for more than 23 months are required to re-train and re-take examinations. “This discourages pilots from resigning,” said a lawyer surnamed Cheng.

The overall effect of the various regulations has been to make it very difficult for pilots to move to the private sector.

Some pilots have even contemplated suicide after their licenses were suspended and their lawsuits thrown out by the courts.

CAAC East China Regional Administration allows one percent of public sector pilots to move each year, but some lawyers say this violates the Labor Law.

“According to the Labor Law, airlines should hand over pilots’ files within 45 days of their resignation,” said a lawyer named Xiao Shengfang.

State-owned airlines are using their control over pilot mobility to protect their monopoly of air transportation in China and restrict the growth of private airlines, said an anonymous pilot.

“The CAAC should draw up a long-term training plan to meet the increased demand for pilots, and allow free movement of staff,” said Cheng Weihao.

But no such plan is currently under consideration according to an official from the CAAC East China Regional Administration.

(China.org.cn by Yang Xi April 29, 2008)