American Airlines Drops Plan to Add Seats to Small Jets

American Airlines Group Inc. won’t try to add seats to the largest jets flown by its regional carriers, saying it’s more important for new management to build trust with pilots than to increase revenue.

The move means American will stick with planes carrying no more than 76 people, instead of increasing to the 81 seats the airline preferred, American President Scott Kirby said today in a letter to pilots. Planes with more seats must be flown by American’s mainline pilots, not its commuter partners.

“It seems the reason it is difficult to convince our pilots that this change is in their best interest -- and not some nefarious scheme to harm them in some way -- is because the pilots of American do not fully trust management,” Kirby said. Dropping that plan will cost American “tens of millions of dollars” annually, he said.

American made the offer to pilots two days after flight attendants rejected a tentative contract that would have been the first to include workers from merger partner US Airways. A 76-seat limit for jets at regional airlines is an industry standard. Any increase threatens the jobs of mainline pilots who fly bigger planes, unions have said.

The Allied Pilots Association declined to comment on the regional jet proposal until its board can be briefed on American’s offer at a meeting tomorrow, said Dennis Tajer, a union spokesman.

Contract Talks

Kirby is part of the former US Airways management team that took over American when the two airlines merged in December. The Fort Worth, Texas-based company is negotiating a single contract to cover pilots from both carriers.

The APA and previous American management failed to negotiate a contract in more than five years of talks, finally agreeing on terms in bankruptcy. A legal battle kept US Airways from merging two pilot groups for years after it combined with America West.

“Given the history of labor relations at American and US Airways, we can appreciate why that feeling exists,” Kirby said of the distrust. “But we want to change that perception and the entire leadership team at AA is working very hard to do so.”

American’s offer would give its pilots the highest pay rates among its major network peers, Kirby said, without providing other details.

The tentative agreement with the Association of Professional Flight Attendants was rejected Nov. 9 by a margin of 16 votes out of more than 16,000 cast. American and the union will begin arbitration hearings for a new contract on Dec. 3, the APFA said.

- Source:  http://www.businessweek.com