Pilot Vote Gives US Airways Much-Needed RJ Flexibility
ARLINGTON (Aviation Daily) - US Airways pilots yesterday voted overwhelmingly to allow the airline to adjust its scope agreement, so regional jets US Airways has on order can be sent to its affiliate carriers, a move expected to make financiers more comfortable about supporting the orders.
Pilots voted in favor of Letter of Agreement (LOA) 91 by a margin of nearly three to one, with 74.1% of pilots voting. The Air Line Pilots Association (ALPA) said that when the agreement is signed, it will give US Airways “additional flexibility†in deploying large RJs, allowing them to be “flown at US Airways affiliates in greater numbers in order to protect our company’s ability to obtain financing for and operate those aircraft under our code.â€
Because the airline’s credit rating was cut recently, GE Capital can rescind or renegotiate its RJ financing agreement at any time. Before the union vote, US Airways had to place its new RJs at its wholly owned subsidiaries, but LOA 91 allows US Airways to negotiate with its affiliate carriers, so they can take on some of the RJ orders instead. The RJs on order will then be used for US Airways Express flying, instead of going to a competing airline.
The change to scope limitations was regarded as a key element of the airline’s new business plan. “This favorable vote is a clear indication that our pilots do understand the challenges that the company faces and again are taking the necessary steps to help us during this extremely difficult time,†US Airways said.
In a message to pilots Friday, ALPA’s US Airways unit head Bill Pollock said LOA 91 needed to be approved. “I can tell you unequivocally that US Airways needs feed and revenue from the planned future deliveries of [large RJs]...as this feed supports our revenue and our mainline fleet size by placing passengers on mainline aircraft,†Pollock said.
“The purpose of LOA 91 is to increase the likelihood of GE Capital providing financing for continued [RJ] deliveries under the US Airways code because it increases the security of GE Capital’s investment with US Airways,†he said.
Although the LOA gives US Airways more flexibility with new RJs, it does not change the total number of medium or large RJs that can be operated as US Airways Express. It also does not alter the minimum mainline fleet size of 279 aircraft.
Respectfully,
USA320Pilot
I have had no interest in flight school, past or present.
