American Airlines has responded to a contractual limit on ASM growth at its regional affiliates with a plan to strip the AA* code from certain St. Louis-based flights operated by American Connection partners Chautauqua, Trans States and Corporate Airlines. American claims the move will give it another six to nine months to decide the fate of its San Juan, Puerto Rico-based Executive Airlines subsidiary. American had entered talks to sell the unit to create room within its ASM limitations for the delivery of more regional jets from Bombardier and Embraer (AIN, March 2002, page 3). According to an American Airlines spokesman, the airline suspended that plan after it found this temporary solution.
American has already cut capacity among its Saab 340 and ATR turboprop fleets to comply with a clause in its pilot contract that requires the company to freeze its regional subsidiaries’ ASMs in the event of a pilot furlough at the mainline. American began considering that measure and the subsequent plan to remove its code from American Connection flights after it failed to secure relief from the clause, triggered on October 1, when American began furloughing pilots as a result of post-September 11 traffic declines.
