Details of a tentative labor agreement released on Friday show United’s flight attendants are on their way to securing a substantial boost in pay. But also included in the 425-page document is a provision that could shake up the entire U.S. air transportation industry – permission for United to own a regional airline.
The agreement’s “scope” section allows United to launch or acquire a regional carrier that would not have to use mainline flight attendants unless United pilots are operating the flight.
“The company may create or acquire a controlling interest in and control of a regional carrier conducting United Express flying…” the text reads. “As an exception to Paragraph 1, above, flights of such United Express carrier may be staffed by flight attendants of such carrier unless the flights are operated by United pilots covered by the United pilot agreement, in which case they will be staffed by United flight attendants covered by this agreement.”
Currently, United offers regional service under its United Express brand through capacity agreements with carriers such as Republic, CommuteAir, Mesa, and SkyWest. United owns a piece of CommuteAir and the now-combined Republic and Mesa, but it does not outright own any of its regional partners.
This approach differs from the airline’s main competitors, Delta and American, which offer regional flights through wholly-owned subsidiaries as well as partner carriers. Delta owns Endeavor Air, while American owns Envoy Air, PSA Airlines, and Piedmont Airlines.
While the Association of Flight Attendants-CWA consented to the new provision, it could raise concerns among rank-and-file members. Flight attendants at any future subsidiary would almost certainly be paid less than mainline flight attendants, opening the door to in-network competition and a possible loss of hours for higher-paid crew members if more flights are transferred to the subsidiary’s operations.
United has not announced any plans for a wholly-owned subsidiary airline.
Pay Boost
The proposed contract would raise base pay rates through July 2030. By that date, United’s most experienced flight attendants would be earning just over $100 per hour.
The deal would also boost incentive pay rates, institute boarding pay, increase 401(k) matching, and provide a signing bonus for every flight attendant.
United’s flight attendants have not had a contractual pay increase in almost six years.
The airline and the AFA announced the tentative contract late last month after lengthy negotiations. The agreement must pass a ratification vote from union members before it can take effect.
Voting is set to begin on April 23, the AFA said.
