Internal Communications Indicate They Could Invest In 100-Seat Regional Jets If Agreement With Pilots Is Reached

In an effort to reach an agreement with its pilot's union, United Airlines has said it plans to buy a fleet of new 100-seat regional jets from either Bombardier or Embraer if they can reach an agreement with their pilot's union in the next month and a half.

Bloomberg Business reports that in a letter dated October 2 to union leader Jay Heppner, United Senior VP Douglas McKeen said that the change in leadership at the airline represents a "unique opportunity" for the two sides to come to an agreement. McKeen said that he hopes to have a new deal in place in the next 45 days. He was referring to the recent ouster of former president Jeff Smisek.

The letter was confirmed by United Spokeswoman Megan McCarthy, but she would not elaborate. Dave Kelly, an ALPA spokesman, said the union "cannot discuss offers or proposals."

The promise of new planes to replace the cramped 50-seat airliners currently flying some routes could be a significant enticement to the pilots, who enjoy flying upgraded equipment. The new planes would also generate more jobs.

United has not been able to reach a unified labor agreement with the pilot's union since its 2010 merger with Continental.

New airplanes manufactured by both Embraer and Bombardier are mentioned in the airline's current contract with its pilots. Bloomberg Business reports that in his letter, any contract extension "will also include a firm order" for new, larger regional jets.

FMI: www.united.com