BRENDAN SOBIE / WASHINGTON DC

Airline is finding it impossible to finance regional jets while in bankruptcy protection

US Airways' plans for quick regional jet expansion have been set back by its shaky financial situation and troubles at its ailing regional partners.

The carrier secured pilot union authority in August to immediately add up to 245 regional jets beyond the 70 already operating across its network. But attempts to line up aircraft and operators have so far failed. It is trying to pursue a dual track expansion plan: preparing its four regional subsidiaries for jets and forging new feeder agreements with independents.

The carrier has discovered ordering and financing regional jets for its subsidiaries while in bankruptcy protection is impossible and strong independents do not want to participate in its required jets-for-jobs programme.

In filing for bankruptcy protection in August, US Airways said its plans for ordering regional jets were unaffected, but it has since told pilots such expansion will not occur until it exits bankruptcy protection, or the first quarter of 2003 at the earliest.

After recognising that plans to have new regional jet subsidiary Mid-Atlantic Airways operating by the end of the year were unrealistic, US Airways forged new feeder agreements with Midway Airlines in July and Mesa Air Group last week.

Midway, which suspended operations in July, was required to line up 18 Bombardier CRJs by 31 August and begin operating the first five aircraft in October. Hamstrung by its own bankruptcy and poor credit rating, Midway has not yet met these or other conditions, and is now aiming to restart services in November. Half of Midway's cockpits must be crewed by mainline pilots under the jets-for-jobs deal, but the Air Line Pilots Association (ALPA) says US Airways pilots have not yet been hired or trained by Midway - a process that will take at least two months.

The Mesa agreement calls for 20 more regional jets beginning in December, beyond the 32 it already operates for US Airways. But the pilots at Mesa subsidiary CCAir must first approve jets-for-jobs, which ALPA says will not occur until labour issues at Mesa are settled. So far only Midway and US Airways' three regional subsidiaries - Allegheny, Piedmont and PSA - have approved jets-for-jobs, while its other regional jet operators - Chautauqua Airlines and Trans States Airlines - have ruled out participation.

Source: Flight International