United tells two regional airlines it will continue contract with just one: union letter

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United tells two regional airlines it will continue contract with just one: union letter
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United Airlines has told two regional airlines, ExpressJet and CommutAir, that it will drop its contract with one, according to a pilot union letter seen by Reuters, in a potentially mortal blow to the losing carrier as the coronavirus pandemic guts demand.

A United Airlines plane is seen in the background as a passenger sits in Terminal C of the IAH George Bush Intercontinental Airport amid the coronavirus disease outbreak in Houston, Texas, U.S., July 21, 2020. REUTERS/Adrees Latif

Chicago-based United has minority stakes in both companies, which operate Embraer SA E145 50-seat planes that bring passengers from smaller markets to destinations that United itself serves on larger jets. United, in an emailed response, acknowledged that its relationship with regional airlines will change.

“While ExpressJet offers many attributes that make us an attractive long-term partner, cost has reared its ugly head once again and we have been asked by our management team to close the gap between our costs and those at CommutAir,” the letter said.

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