US Airways Halts 25 RJ Deliveries

[wackford]

From: http://www.aviationheadlines.com/

US Airways Halts 25 RJ Deliveries

Jul 10, 2003

US Airways, which is planning its future growth strategy around smaller regional jets, says it will not be taking delivery of 25 Bombardier CRJ-705 planes because of a contract dispute with the airline's pilots.

The Arlington-based carrier said that, instead, it will ask affiliate Mesa Airlines to fly at least 25 and perhaps as many as 55 regional 70-seat jets under the US Airways Express banner.

The Bombardier aircraft were part of a massive 170-plane order split between the Canadian manufacturer and Brazil's Embraer which was placed in May.

US Air, which emerged from bankruptcy protection at the end of March this year, said the decision was taken after it failed to reach agreement with the Air Line Pilots Association on terms under which the 75-seat CRJ-705 would be flown by a wholly owned US Airways affiliate using furloughed US Airways pilots.

"We continue to believe that the CRJ-705 falls within the parameters of our contract with ALPA, and we were enthusiastic about the purchase of these planes, which would have provided jobs for up to an additional 225 furloughed US Airways pilots," said Bruce Ashby, president of US Airways Express.

"ALPA disagreed, and rather than spend months, maybe even years, negotiating and arbitrating our differences we have decided instead to place the jets at Mesa."

Under the US Airways deal with its cockpit crews, half of all regional jet pilot positions at affiliate carriers such as Mesa must be filled with furloughed US Airways pilots. But all the jobs associated with the CRJ-700 series and Embraer 170/175 aircraft go to furloughed pilots placed at the airline’s regional carriers or its new wholly owned MidAtlantic Airways division.

"Throughout our negotiations we impressed upon ALPA the need to stay on track in order to take delivery of these new regional jets," said Ashby. "We finally concluded that we must agree to disagree. Since we must continue to run the company and implement our new business plan, the end result was the decision to utilize Mesa and its work force."

 

[wackford]

Bombardier's thoughts on the news

From Reuters:

Bombardier sees no harm in US Airways order change
Wednesday July 9, 6:12 pm ET
By Charles Grandmont


(In U.S. dollars unless noted)
MONTREAL, July 9 (Reuters) - Bombardier Inc (Toronto:BBDb.TO - News) said on Wednesday it will not be hurt by US Airways' decision not to take delivery of 25 of its Canadair Regional Jets because the planes will still be flown by the carrier's regional affiliate Mesa Air Group (NasdaqNM:MESA - News).

"There is no reduction in the number of aircraft to be delivered and the number of firm orders, and the value of the contract, $2.2 billion, remains the same," said John Paul Macdonald, spokesman for Bombardier, the world's third-biggest maker of civilian aircraft.

US Airways said on Thursday it would not take delivery of some of the planes it ordered in May from Montreal-based Bombardier because it had failed to get its pilots to agree on terms for flying them.

US Airways, the seventh-largest airline in the United States, has signed instead a letter of intent with Mesa Air Group allowing the regional carrier to fly at least 25 and perhaps as many as 55 of the 70-seat jets under the US Airways Express name.

US Airways had originally ordered 75-seat planes from Bombardier, but the carrier has revised its order to get 70-seat aircraft, the Bombardier spokesman said.

"It looks to me as a neutral event (for Bombardier)," said aviation analyst Cameron Doerksen, of Dlouhy Merchant.

Bombardier's order from US Airways was for 85 regional jets, 60 of them 50-seat CRJ 200s and 25 of them the 75-seat CRJ 700 series 705. Deliveries were to stretch from the fourth quarter of 2003 to second quarter of 2005.

US Airways also agreed to buy 85 70-seat jets from Brazil's Embraer (Sao Paolo:EMBR3.SA - News), Bombardier's main rival. Those planes will still be delivered as planned because US Airways pilots have already agreed to fly them.

The pilots' opposition stems from so-called "scope clauses", negotiated as part of labor contracts, that determine the size of aircraft that mainline and regional pilots can fly.

In recent years, regional airline pilots have criticized scope clauses for limiting the size of aircraft they can fly, in effect restricting the number of regional jets flown by mainline carriers and their affiliates.

US Airways emerged from bankruptcy protection this spring and wants to significantly expand its regional jet operations.

Bombardier stock closed down 16 Canadian cents at C$5.04 on the Toronto Stock Exchange (News - Websites). The stock has doubled since tumbling to a 52-week low of C$2.56 in March on concerns about the health of Bombardier's aerospace business.

($1=$1.37 Canadian)

 

[acaTerry]

US Airways, which is planning its future growth strategy around smaller regional jets, says it will not be taking delivery of 25 Bombardier CRJ-705 planes because of a contract dispute with the airline's pilots.
The Arlington-based carrier said that, instead, it will ask affiliate Mesa Airlines to fly at least 25 and perhaps as many as 55 regional 70-seat jets under the US Airways Express banner.

Please don't do it guys.....

 

[blzr]

Someone please tell me how it is against the scope for a Regional to fly those 70 seat RJ's, and not against the scope for Mesa to fly them? What a crock of Sh1t.

Anyone know Duane Worthless' emil address?

 

[hhab]

...

 

[hhab]

"Someone please tell me how it is against the scope for a Regional to fly those 70 seat RJ's, and not against the scope for Mesa to fly them?"

There is no scope for any commuters to fly 70 seaters for U. (But of course there has to be an agreement )
Mesa allready had a agreement to fly 25 and up to 55 Crj700s. (loa 83, some 5-6 months ago) But it was never really "confirmed".
U wants Ualpa to fly CRJ 705, Ualpa did not agree upon it. Now you see those 705 converted into 700 and U is about to give these ( 25 up to 55 crj 70s ) to Mesa. So I am not sure there is any real news here....

 

[blzr]

The pilots' opposition stems from so-called "scope clauses", negotiated as part of labor contracts, that determine the size of aircraft that mainline and regional pilots can fly.

We at the W/O's are definately scoped. We are limited to to 50 seats or less. We are a regional, so is mesa. What's good for one should be good for the other.

I think Scope is just descrimination by another name. Only "MAINLINE"can fly these types. Now, all you mainliners substitute any of the following words for MAINLINE [ men, white men, non Jews, et. al.]

 

[hire_me]

Those mainline pilots are idiots. I support the unions, but it doesn't make sense to prevent your employer from making economically sensible decisions. The mainline pilots blocked the 75 seaters from the company to protect their jobs? Now they can go after the same jobs with 70-seaters at Mesa for pennies on the dollar!

Am I missing something here?

 

[B1900DFO]

"It doesn't make sense to prevent your employer from making economically sensible decisions." So by your logic the Airways mainline pilots should shift all their flying to the Wo's because it's cheaper? They drew the line at 70 seaters, not 75 seat jets. They are merely trying to protect their profession. I despise mesa just as much as the next guy but I don't think somebody who was making six figures at a mainline carrier is going to see much of a difference between working for Mesa at 21k/year or pdt/alg/psa for 24k/year. I wish alpa had fought for rj's at mainline years ago so this wouldn't be an issue now.

 

[Tim47SIP]

1900

OK I'll bite,

They drew the line at 70 seaters, not 75 seat jets. They are merely trying to protect their profession.

So exactly how is allowing contract carriers to fly up to 70 seats but not the WO's? That looks like pure and simple "We are in charge, and you get what we give you" bullying tactics to me!. Personally, I think mainline U screwed the pooch AGAIN on this one. They have an agenda, and if things around them dont conform, they will just stick their heads in the sand untill it goes away. YeP! they shure showed the company who was boss on this one!