One of the company’s goals with all represented employee groups in restructuring is to relax those contractual barriers that constrain our operations. The ability to optimize our network and schedule is critical to the strength of AA’s business plan and overall network strategy. It also helps generate additional revenue, improve our ability to compete and ultimately, our prospects for growth.
For years American has had the smallest percentage of regional feed compared to other major carriers. Considering that regional feed can be a huge source of traffic and revenue for the mainline, this means lost revenue and has put American at a disadvantage to our competitors.
With the ratified agreement, American will eliminate the owned/non-owned commuter carrier distinction along with changing the definition of a Commuter Air Carrier. Regional feed aircraft are limited to 76 seats and 86,000 pounds of maximum take-off weight (MTOW), with a regional aircraft cap at 65 percent of mainline narrow-body fleet count. These changes will improve American’s ability to compete and help us better position the company for success.
The other major exception to Scope is codesharing, which allows an airline to market another airline’s network. As consolidation of the network carriers has taken place, domestic codesharing relationships have transformed into single carrier networks. As a result, our competitors’ networks have significantly strengthened.
The company’s changes to codesharing will give American the ability it needs to form and maintain codesharing relationships in specific domestic markets, including where there are slot and facility constraints, or where it is not economically viable for mainline flying. The agreement also includes restrictions on hub-to-hub codesharing and a proportionality requirement for codesharing from American’s hubs to partner hubs.