Bombardier and three US regionals hope restructuring at United Airlines will not affect the carrier's regional jet plans.
United Express is committed to taking an extra Bombardier CRJ every 4.5 days over the next five quarters, roughly doubling its previous delivery rate. But the bankruptcy threat at United, mounting losses at its Express division and the possible launch of a new low-fares unit threaten this expansion.
A Chapter 11 bankruptcy protection filing could force United to downsize and release it from CRJ commitments. A new mainline pilot contract authorises at least another 150 CRJs, eliminating a scope clause and freeing United Express to add all 118 CRJs on firm order, plus many of the 80 on conditional order for 2004. But the contract also opens the possibility of relaunching United Shuttle, a low-fares carrier on short-haul routes before it shut down last year.
Bombardier and United Express partners Air Wisconsin, Atlantic Coast Airlines (ACA) and SkyWest Airlines claim United is committed to making CRJs a focal point of its planned restructuring and, if anything, bankruptcy could hasten route transition to regional operators.
Bombardier has the most at stake, with 85 United CRJs set for delivery in its fiscal year from next February. At its current production rate, United will account for 45% of all CRJ deliveries over the next 15 months.
SkyWest chief financial officer Brad Rich says United still wants the 35 CRJs the former is due to add by early 2004, but says he is in talks with other potential partners. Air Wisconsin has forged a new feeder deal with AirTran Airways. ACA plans to add seven CRJs this quarter, 35 next year and 12 more in early 2004. The carrier denies it is in talks with potential partners, but says Delta Connection expansion is possible.
Source: Flight International
