US airline scope clauses pose challenges for United

Premium Analysis

Scope clauses have been a mainstay in US mainline pilot contracts as 50-seat, and then 70- to 76-seat, jets have permeated the US market place. There have been changes to scope over the years that have allowed American, Delta and United to add varying levels of larger regional jets based on certain percentages of their respective mainline fleets, and caps on the larger aircraft.

United Airlines has reached its cap for larger regional jets, and now is in the process of adding 50-seat regional jets as it works to become more competitive against its larger US rivals in the country’s domestic market.

It is a less than ideal scenario for United, but the airline is taking great care to stress that its ambitious earnings targets for 2020 are not based on changes to its scope clause.

Become a CAPA Member to access Analysis Reports

This CAPA Premium Analysis Report is 1,161 words.
Become a CAPA Member

Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.

Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.

CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 1,000 News Briefs every week and comprehensive data and analysis on thousands of companies around the world.