GECAS’ RJ ultimatum backs pilots into corner

GE Capital Aviation Services has amplified threats to withdraw its regional jet financing deals with US Airways if pilots do not accept a revised letter of

By Gregory Polek • Senior Editor

October 4, 2007

GE Capital Aviation Services has amplified threats to withdraw its regional jet financing deals with US Airways if pilots do not accept a revised letter of agreement (LOA 91) to loosen restrictions on RJ placement outside the airline’s wholly owned subsidiaries. Earlier this month a negotiating committee established by ALPA ratified a new resolution on LOA 91, details of which ALPA’s US Airways Master Executive Council (MEC) read during an April 8 meeting in Pittsburgh. The union scheduled a series of road shows to explain the deal with the rank-and-file. It expects to distribute ballots and announce a decision within the next few weeks.

The new deal, the latest in a series of contract revisions US Airways has negotiated with the union, could spell good news for independent US Airways Express affiliates Mesa Air Group, Chautauqua Airlines and Trans States Airlines, all of which stand to add a significant number of regional jets to those they already fly for the Arlington, Va.-based major airline. Under previously negotiated union deals, US Airways agreed to place 85 Embraer 170s with Pittsburgh-based MidAtlantic Airways and at least 60 Bombardier CRJ200s and 25 CRJ700s with wholly owned subsidiary PSA Airlines.

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