Scope Clauses
The separation of the four contract airlines is due to “scope clauses” between mainline pilots and each major carrier Republic feeds. These clauses regulate the size of regional jet aircraft that affiliate carriers may operate; the intent behind such clauses is to protect mainline pilots from being replaced by lower-paid regional pilots. In 2005, Republic paid a $6.6 million settlement to the Allied Pilots Association after placing Embraer 170s in service with Chautauqua Airlines as United Express, because such aircraft violated the scope clause in the pilots’ contract at American Airlines, which also contracts with Chautauqua for regional service as American Connection. To avoid further liability, Republic moved all of its Embraer 170 aircraft to Shuttle America, an airline that previously only operated Saab 340 turboprops.
Read more about this topic: Republic Airways Holdings
Famous quotes containing the word scope:
“As the creative adult needs to toy with ideas, the child, to form his ideas, needs toys—and plenty of leisure and scope to play with them as he likes, and not just the way adults think proper. This is why he must be given this freedom for his play to be successful and truly serve him well.”
—Bruno Bettelheim (20th century)