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LC 171 Chairman’s Update

(reprint from C171)

January 26, 2018

Kirby Talks Scope

This week during the investor update an analyst threw a predictable question at UAL President Scott Kirby. He asked “…How do you put a dollar amount on the amount that you’re going to have to pay for likely scope relaxation, unless you reject the premise of the question that you don’t need scope relaxation?” Buried in Kirby’s protracted answer is this little gem: “…it’s not about buying scope relief.”

It’s hard for many of us to shift our mindset to the current paradigm. Many of us remember being burned by scope language changes in the past, whether we voted on them willingly or were forced into them during bankruptcy proceedings. Some suffered furloughs due to poor language, and many of our newer pilots spent a decade longer at regionals than they would have liked. We have seen the playbook of the past. When we listened to the investor update, we listened through that filter. We cannot repeat the mistakes of the past. We have to change that way of thinking, and I would argue that we already did that with the current UPA language. Scope choke is working.

Kirby said a lot of things in that investor update, and, quite frankly, I agree with most of it. We have to grow and strengthen our hubs, take back market share, provide a quality product, increase connectivity, fly high yield passengers from small markets, etc. 50 seat jets are not the answer. Airbus/737 jets are the answer in some markets, but not all. An opportunity exists in many markets between those aircraft, but United is rightfully and contractually scope choked. This was not only for our own good, but for theirs as well. The answer exists in our current UPA language and requires no scope relaxation.

Option 1

New Small Narrowbody − UPA 1-C-1-g allows a limited increase in 70/76 seat aircraft at express if the company operates CS100, E190 or E195 aircraft. Limitations still exist, and the company would still have to operate within a defined box.

Option 2

Buy ‘em and fly ‘em − Nothing prohibits the company from purchasing any aircraft they desire and having those aircraft flown by pilots on our seniority list. As with any mainline aircraft, there would be no limitations on how many can be flown, where and when.

Those are the options. It’s very simple. Houston, we do not have a problem.

In unity,

Brad Hutchens

LC 171 Chairman