American Airlines didn’t waste time in making a new order for new regional jets.  The order is split between Bombardier and Embraer.

Bombardier CRJ900:  30 orders / 40 options

Embraer E-175:  60 orders / 90 options

The CRJ900 jets will go to US Airways wholly owned subsidiary PSA and, as you can imagine, PSA pilots are thrilled.  The Embraer jets are To Be Determined and, as you can imagine, the American Eagle pilots are way less than thrilled.

I honestly can’t read the motives of American Eagle pilots.  That airline is grossly overburdened with expensive 50 seat (or less) regional jets that will be going away.  Make no mistake, even if the capital costs are exceptionally low for keeping those planes, they are going away.  They are inefficient, costly to maintain and frequently break down at this point.  They are becoming quite old and they don’t fit the modern world model.

American Eagle pilots, represented by ALPA, haven’t found an agreement with American Airlines.  American Airlines president Scott Kirby thinks they can put a deal together and I think that . . . maybe not.  AE pilots are very well paid and many have decided to make a career at that airline instead of doing what most other pilots at other regional airlines do after a few years:  transition to a mainline airline.

I think AE pilots want to be paid like mainline pilots with mainline schedules.  If true, I think that American Airlines has a solution for that problem:  sell or shut down the airline.  In case anyone wasn’t watching, there really aren’t any buyers for expensive regional airlines with old equipment.  Comair anyone?

I feel bad for the AE pilots because they have a lot to lose and they don’t have much bargaining power.  If a deal is made, I would make sure that AE pilots have the right to upgrade into mainline AA operations for the next 10 years.  Pilots who stay in the regional airline game for their career can expect to see bankruptcies, consolidations, strikes and layoffs that are reminiscent of an era already gone in mainline operations.  Fighting won’t change that.

The best favor a union could do for those people is find a way for them to move up and out.

Oh, and those Embraer jets that just got bought?  They aren’t going to be committed to American Eagle until and if there is a contract.  Wait too long and they’ll go to someplace like Republic who already operates them and who already works for American Airlines.

Filed under: Airline Fleets, Airline News, Mergers and Bankruptcy by ajax