United Airlines is seeking bids from its three existing United Express regional operators, along with new potential partners, to add more regional jets, including 70-seaters, to its feeder system. But meanwhile, the carrier's Chapter 11 bankruptcy protection is undermining the financing for 50-seat aircraft already on order.
The airline is reportedly trying to save up to $170 million from its $1.5 billion regional operation, which lost $225 million last year. All the United Express carriers are still paid fees for departures at the 2002 rate which, as in the case of SkyWest Airlines at $3,570 per Bombardier CRJ200 departure, are among the highest in the industry. The cuts being sought by the mainline carrier would represent a 10-12% reduction.
At stake for SkyWest, together with Air Wisconsin and Atlantic Coast Airlines (ACA), is not only the allocation of up to 150 future regional jets, but also nearly 100 CRJ200s on order. United is entertaining bids from other potential operators, such as Mesa, which has already signed a memorandum of understanding to become a United Express operator.
ACA has taken delivery of 79 of the 121 CRJ200s on order for its United Express operation, but since late February has suspended deliveries, leaving four aircraft parked at Bombardier's Dorval plant. Chapter 11 bankruptcy protection allows United to revoke any of its regional contracts, and so "finding financing is next to impossible", says the Dulles-based carrier.
SkyWest chief operating officer Ron Reber says: "We have similar concerns." The carrier has taken delivery of 35 of the 55 CRJ200s on order and is due to take the rest by March. Skywest is also looking to take up to 50 more aircraft and is considering 70-seaters.
Air Wisconsin has received more than 30 of the 64 CRJ200s on order, but has placed some with AirTran Airways' new regional operation as a fallback.
Source: Flight International
