US Airways, Pilots Agree To RJ Expansion

After months of negotiations, US Airways management and the Air Line Pilots Association representing the carrier's pilots today finalized an agreement to double to 140 the number of regional jets flying in the US Airways Express network. US Airways has said it needs to significantly expand regional jet operations to survive competitive pressures from the likes of JetBlue Airways, AirTran Airways and Delta Express.

"This is a critical first step in helping US Airways strengthen its competitive position on the East Coast," said US Airways president and CEO David Siegel.

Roy Freundlich at the US Airways ALPA Master Executive Committee last night said in a union update the carrier "is permitted to immediately operate an additional 70 small jets under its code, at a 50-seat maximum, with ramp-up operations beginning as early as next week."

US Airways earlier yesterday posted a first-quarter net loss of $269 million and plans to unveil a restructuring plan in the weeks ahead. "To be successful, US Airways must restructure to lower its unit costs, optimize the revenue potential of its East Coast presence and improve its overall balance sheet position," Siegel said.

The carrier's cost structure is among the highest in the industry and can be improved by deploying more regional jets to align supply and demand.