As the new US Airways [LCC] takes to the skies free of bankruptcy and partnered with the former America West Airlines, the pilots of the new mainline carrier may be the ones flying any future Embraer [ERJ] 190 regional jets.

The members of the Air Line Pilots Association (ALPA) at both US Airways and America West are in the midst of a telephone ballot on a proposed pay scale for the Embraer 190. If the pilots adopt the measure - as recommended by its leadership - the Brazilian-made regional jet would not be flown by any US Airways Express carrier. The balloting ends on Oct. 11.

As recently as early August, US Airways was soliciting proposals from its regional code-share partners - Republic Airways [RJET], Mesa Air Group [MESA] and Air Wisconsin - to operate up to 25 90-seat RJs, like the Embraer 190, in the US Airways Express operations (RAN, Aug. 8). In fact, Teamsters Local 747, representing Republic's pilots, on Sept. 1 adopted a jets-for-jobs program that would have paved the way for Republic to bid on the Embraer 190s.

The proposal US Airways made to its regional carriers was aircraft-neutral. In other words, the code-share partners were to suggest the aircraft as part of their bids.

The new mainline contract would not impact Mesa's use of the 86-seat Bombardier [BBD] CRJ 900 as part of the America West Express network.

The provisions for the Embraer 190 were part of a transition labor accord that was reached between the carrier and the ALPA units for US Airways and America West, said Capt. Jack Stephan, a spokesman for the US Airways ALPA unit. The three sides worked out a transition agreement designed to provide one labor contract after the carriers merged.

America West purchased US Airways as part of US Airways' recovery plan to exit from its second bankruptcy. The two carriers were merged on Sept. 27, 10 days after the bankruptcy court gave its final blessing to the recovery plan and the distribution of the carrier's assets. Although America West executives will manage the carrier from their Phoenix headquarters, the US Airways moniker will be adopted for the carrier because of its national name recognition. The holding company will continue to operate the two airlines as separate carriers for two to three years as fleet needs and labor seniority issues are worked out.

While US Airways had been seeking proposals for a 90-seat RJ from the regionals, Stephan would not say if ALPA or the carrier brought the Embraer 190 issue to the table. In the negotiations, he noted, the discussion were strictly limited to the Embraer 190 and not to a general class of 90-seat RJs.

Under the previous US Airways-ALPA accord, the mainline pilots could fly the Embraer 190. However, the America West-ALPA pact prohibited the mainline pilots from flying the plane.

"Our contract allowed a certain amount of the Embraer 190 flying outside of the mainline," Stephan said. "It was not a fait accompli that that would occur. It just gave them the right to do that. It was not ever clear they were going to exercise it or not. The company was never sure where they would put it.

"All three parties wanted to resolve the issue and this is the result of the negotiations. It was a problem that all three parties had. This is a way to resolve that issue."

Stephan said the new Embraer 190 pay rate would be similar to the rate that union-free JetBlue Airways [JBLU] will pay its pilots who fly the same plane. JetBlue, the launch customer for the Embraer 190, with an order for 101 planes, has begun taking delivery of the planes and plans its first flights in November. The "top scale" US Airways ALPA rate for the 190 will be $94.75 an hour in the first year and $102.56 in 2015. The first officer will earn $52.16 an hour in the first year and $61.11 by 2015.

Not addressed in the new provision is who would actually fly the plane - should US Airways ever order the plane. Stephan suggested that it would be up to the carrier to determine who would bid for these flights. In addition, it may be determined that furloughed mainline pilots may be recalled to fly the Embraer 190s.

When US Airways began hiring pilots to fly the Embraer 170 in 2004, hiring preferences were given to furloughed pilots, flight attendants and mechanics. US Airways was the launch customer for the 70-seat Embraer 170 and its MidAtlantic Airways regional subsidiary had been one of the largest operators of this new generation of Brazilian RJs with 400 pilots employed. Many of these pilots are now in a state of flux. US Airways sold the 28 Embraer 170s to Republic's new Republic Airlines unit; however, only about half of the pilots were to be rehired under an earlier jets-for-jobs program worked out between Republic and US Airways. The Teamsters and ALPA are fighting over which pilots will fly these jets.

Spokesmen for both US Airways and America West indicated that there is no timetable to order the Embraer 190. Likewise, they could not say if the plane would be on the tarmac before both carriers are integrated.

"We do contemplate using the 90-seater to replace 50-seat RJs in some cases," said Amy Kudwa, the US Airways spokeswoman.

In earlier talks with Republic, US Airways said it would strike a deal for Republic to fly 25 Embraer 190s in exchange for pulling 10 50-seat RJs from its US Airways Express fleet.

Stephan said the new Embraer 190 provision does have limitations on the size of future CRJ 900s orders. "The CRJ 900s are not to be mainline aircraft, but they can be flown by Express," he said.

The new ALPA contract, said America West spokesman Carlo Bertolini, will not impact Mesa's use of the CRJ 900 in the America West network. As previously noted at the time of the merger announcement in May, Bertolini said Mesa would eventually be flying the CRJ 900 on US Airways Express routes prior to the integration of the two fleets.

On Sept. 22, US Airways and Republic closed a $100 million asset sale. Republic purchased 10 Embraer 170 aircraft from US Airways and these 10 airplanes will initially be leased back to US Airways. MidAtlantic will operate the planes until they are all transferred to Republic Airlines. Republic is assuming the leases of 15 Embraer 170 aircraft, which will also be operated by its Republic Airline subsidiary. The transition of all 25 aircraft is expected to be complete by next September. Republic Airlines currently operates three Embraer 170 aircraft on behalf of US Airways.

In addition, Republic purchased 113 commuter slots at Ronald Reagan Washington National Airport and 24 commuter slots at New York LaGuardia Airport. The purchase price for all of the slots was $51.6 million. The slots will be leased back to US Airways and will continue to be operated by US Airways Express carriers.

>>Contacts: Jack Stephan, ALPA, (410) 703-9259; Amy Kudwa, US Airways, (703) 872-5116, Carlo Bertolini, America West, (480) 693-5729.<<