For those who don’t know much about Trans States Airlines, the company I work for, it began early on doing flying under contract for TWA as Trans World Express. Under those colors, they flew for a multitude of years. Eventually, American Airlines purchased TWA (a failed business) and the flying was continued under the American livery. The lawyers got together and created a separate title called American Connection. Trans States repainted the existing airplanes as American Connection, grew quite a bit as well acquiring more airplanes and this endured as the primary bread and butter of the company for years. However, during the purchase of TWA and the various legal matters that followed, a scope clause was created (originated by the pilot union, ALPA, under which American Airlines pilots organize). This clause limits ANY contractor d/b/a American Connection to airplanes no larger than 50 seats, no matter what other contracts they may do business under. The theory is that if an airline is flying airplanes larger than 50 seats, they are not a true regional airline and will not do business with American Airlines. This is great for the pilots at American Airlines (the ones who really fought for the implementation of this clause) because it limits the types of flying that can be outsourced at cheaper rates. A good thing. They’d outsource much more flying if they could because guys like me will fly airplanes for a fraction of what the mainline pilots will work for (the law of supply and demand and the nature of this business is such that you’ve got a long road of time building to travel before getting anywhere and this causes pilots like me to accept low pay in order to build the time required for the higher pay).
This scope clause limited the entire company of Trans States Airlines to 50 seat flying, effectively stifling any ability for the company to fly larger equipment, for any code share at all whilst d/b/a American Connection. Thus, GoJet was born to escape this clause, but that is fodder for another post entirely.
Apparently, many of the airplanes that we began to fly as we grew as American Connection were owned by the holding company of American Airlines (AMR, Inc.) and leased to us to operate. With the recent economic downturn, these airplanes have been requested back due to agreed upon union rules. American Eagle, the regional airline owned by AMR (they are trying to doff it right now, BTW, because companies like Trans States can do the same flying for cheaper) has an agreement that no pilot there can be furloughed until all airplanes owned by AMR and leased to outsourced companies are back on the property. This makes sense. Why furlough Eagle pilots when their airplanes (both Eagle and the Connection airplanes are owned by AMR) are being flown by other companies? AMR wants to furlough Eagle pilots, so in order to not violate the union contract, they have requested the Connection airplanes back. THEY HATE THIS!! We (Trans States) can operate these airplanes for much cheaper than Eagle can. However, they have no choice. The rumors floating around these parts are that AMR is going to repossess the Connection airplanes, then turn around and furlough the Eagle pilots as was their original intention. So basically, our airplanes will go back to the desert. In this way, AMR hasn’t violated any contract. (Whether they actually go to the desert or not is conjecture at this point).
Therefore, Trans States is losing 80 percent of the American Connection fleet, back to American who owns the airplanes.
Some things that don’t make sense:
1. The company doesn’t seem to be fighting very hard to secure the Connection flying. If we have a contract to fly those routes, why isn’t Hulas (the owner) acquiring different airplanes right now (ones not owned by American) to keep that flying in house? We’ve been doing this Connection flying for a very long time. Seems like its going away without a tough fight.
2. We are operating 3 Connection airplanes outside of those owned by AMR (leased by other leasing companies). We are getting rid of those too. Yet, we are hanging onto the US Airways flying (3 or 4 planes worth). Why hang onto the Airways flying (as insignificant as it is), yet doff the 3 Connection airplanes that aren’t owned by AMR? If we have a contract, why not fly as much of the routes as we can with those 3 airplanes until replacements for the 10 are obtained?
This makes me wonder if the company wants to get rid of the Connection flying for a certain reason, to escape the 50 seat clause, perhaps.
I’ve heard rumors that after the airplanes are gone from here, we’ll just pull 10 more from the desert and keep doing the flying. If this is the plan, why wait until they are all gone? The company hasn’t made any announcement as to acquiring different airplanes to continue the Connection flying.
I have a hard time believing that the company is just letting the Connection flying go as easily as they are without some tactical advantage that hasn’t been released.
I honestly believe, despite all factual knowledge in hand (the company holds their cards very close) that things aren’t as bad as they look. Yes, things will get worse before they get better. But, I believe something will come along. It’ll either be that we secure that Connection flying again utilizing different airplanes, we lose it all and escape the scope and become free to get larger airplanes and do so under some new contract, or Mesa airlines goes under and we take a lot of their flying. Perhaps something else entirely.
Something will give. I just can’t believe it is as bleak as it seems.