By Rebecca Rayko,
AWN Editor
SAN ANTONIO, Texas - Heavy on the minds of the regional aircraft manufacturers at RAA 2000 was the scope clause issue.
The US regional market continues to be constrained by the scope clause, which is a provision in the labor contracts at several major airlines that limits their ability to transfer routes to regional airlines.
The provision stemmed from fears that pilot jobs at the major airlines would be jeopardized by allowing regional jets to operate in the place of traditional jet service on mainline routes. Replacing narrowbody service (flown by higher paid mainline pilots) with RJs flown by pilots at regional airline pay rates is attractive to management while threatening to major airline pilots, fearing they will be furloughed in favor of the cost-saving RJ use.
Some labor contracts at US majors have limited the number of regional jet units in their fleet. United Airlines' United Express division is restricted to 65 RJs, American Eagle is limited to 67, US Airways Express to 70, Northwest Airlink to 36, and Trans World Express to 30.
The real battleground for the scope issue will center on the 70- to 90-seaters that will be entering the market over the next 2-3 years, says Mike Miller, Fairchild Aerospace director of economic analysis.
"Airlines will need to decide who's flying what. Should majors fly these higher seat regional jets at higher crew costs? Or should they stay with the regionals?" Miller said.
The situation is expected to come to a head rather soon. Scope contracts at several airlines are up for renewal between now and 2003. The airlines seem to be pushing ahead for concessions, but pilots and their unions still carry significant clout. Miller believes the outcome will be an "all-or-nothing" situation.
"Scope will either be mitigated, or pilots will strengthen their resistance. There is no middle ground," Miller says.
This round of contracts will deal with regional jets with 50 seats or fewer at the most constrained airlines (US Airways and United Airlines). What happens at the next round of negotiations, which will involve the larger RJs, is anyone's guess.
Working in favor of the majors, and the manufacturers, are several external factors pushing hard against scope clause restrictions. Regional airlines are growing and making money like never before thanks to the regional jet. The economics on longer routes are hard to beat, and many believe the larger (90- and 110-seaters) will be even more popular with passengers than the smaller RJs already on the market.
"We hope to see some movement on the scope issue, as there is a clear need for such aircraft," Embraer's executive vice president Fred Curado says. "It really is a question of the industry. If the US market continues to be constrained by scope clauses, it will be hard to say what will happen."
Until scope clauses loosen in the US, Europe will be the hottest market for the 70+ regional jets, said manufacturers. There is also a growing market in Asia and Latin America for the larger RJs.
