Scope clause

A scope clause is part of a contract between an airline and a pilot union, existing primarily in the United States and Canada. Generally, these clauses are used by the union of a major airline to limit the number and/or size of aircraft that airline may contract out to a regional airline. The goal is to protect union jobs at the major airline from being outsourced to regional airlines operating larger aircraft.[1]

Since 2012, American, Delta and United caps their feeder fleets regional jets at 76 seats and MTOW at 86,000 lb (39 t).[2] This limit stands until 2019 at United, and 2020 at Delta and American, limiting the sales of the new Mitsubishi MRJ90 and Embraer 175-E2 to the smaller MRJ70 and current E175.[3]

Impact on airlines

Scope clauses place restrictions on how many and what size of aircraft a regional airline may operate. Some holding companies operate a large number of individual airlines, with each airline's fleet specifically tuned to the scope clause of that airline's contracted major carrier.[4]

Select Airline Scope Clauses[5]
CarrierUp to 50 Seats51 - 76 SeatsNotes
American Airlines No limit Above 65 seats, a number not to exceed 40% of the mainline narrow-body fleet Regional flying between specific cities listed in contract may not exceed 1.25 percent of mainline block hours[6]
Delta Air Lines Up to 348 aircraft Up to 102 70-seat aircraft, up to 153 76-seat aircraft 85% of flying to be less than 900 miles, 90% of flying will be to and from hubs[6]
United Airlines Up to 90% of the United Airlines single-aisle fleet 255 aircraft between 51-76 seats, not to exceed 153 76-seat aircraft Regional block hours must be less than mainline block hours. Mainline routes flown in last 24 months prohibited unless United could not earn an adequate return.[6]
Alaska Airlines No limit No limit No scope clauses[7]
Hawaiian Airlines Cannot be flown on trunk routes serviced by mainline aircraft[8] n/a n/a

Since 2013, Embraer booked nearly 400 E175 orders in U.S., besting the CRJ900 by over 4 to 1. Delta Air Lines has maxed out on its 153 allowable 76-seat aircraft, and is now forced to fly its 102 70-seaters. The E170 has six less business seats but the E175SC has 70 seats, keeping the same premium seats with 400 nmi (740 km; 460 mi) more range than the E170 or the CRJ700. SkyWest ordered 30 E175SCs for Delta to enter service in 2018. The E175SC is sold at E170 pricing, a 76-seat retrofit have to go through Embraer.[9]

Impact on aircraft manufacturers

Scope clauses have a major influence on manufacturers of regional aircraft. Manufacturers will create airplanes specifically tuned to the scope clauses of most airlines. For this reason and others, regional aircraft tend to be manufactured in families, and competing regional aircraft will often have identical seating capacity.[10]

Seats
Manufacturer3744507090100
Bombardier DHC-8-100/200/Q200 CRJ440 CRJ100/200, DHC-8-300/Q300 CRJ700, DHC-8-Q400 CRJ900, DHC-8-Q400 CRJ1000, A220-100
Embraer ERJ135 ERJ140 ERJ145 E170, E175 E175, E175-E2 E190/195, E190-E2
ATR ATR 42 ATR 72
Mitsubishi MRJ70 MRJ90

Support and criticism

Scope clauses are supported as a means of saving union jobs. Additionally, major airline pilots are usually higher paid than regional pilots, and there is a perceived safety advantage in favor of major airlines. Criticism of scope clauses centers on the limits they place on the regional airlines they target. They are seen as a way of artificially maintaining the pay of major airline pilots when regional pilots will in theory fly the same size airplanes for less pay.[11]

References

  1. ↑ "A case of Real Job Protection". Negociations. American Airlines. June 26, 2009. Archived from the original on March 14, 2012.
  2. ↑ Edward Russell (20 March 2018). "Are US airlines at their next scope crossroads?". Flightglobal.
  3. ↑ Gregory Polek (December 2, 2016). "Embraer Delays E175-E2 Entry Into Service By a Year". Aviation International News.
  4. ↑ Flint, Perry (Oct 13, 2005). "NWA aims to end scope clause restrictions on large RJs in new pilot contract". Aviation Week Network.
  5. ↑ "The Changing Scope-Clause Environment" (PDF). Morten Beyer & Agnew. July 11, 2017.
  6. 1 2 3 William S. Swelbar (March 2010). "The Future of Scope Clauses" (PDF). 35th Annual FAA Aviation Forecast Conference. MIT International Center for Air Transportation.
  7. ↑ Cooper, Jonathan (2017-11-01). "Alaska Airlines: Tailwinds From Pilot Wage Arbitration Win". Seeking Alpha. Retrieved 2018-02-05.
  8. ↑ "Political Battles Disrupt Hawaiian's Plans". Aviation Week Network. Oct 16, 2013.
  9. ↑ Aaron Karp (Dec 8, 2017). "Embraer Believes 'SC' Will Keep E175 Sales Flowing In U.S." Aviation Week & Space Technology. (subscription required)
  10. ↑ Pilcher, James. "Delta 'scope' limiting growth". Retrieved 13 November 2010.
  11. ↑ "Ten Things Every Pilot Should Know About Scope". Archived from the original on 2009-08-28.

Bibliography

  • "Regional Jet Service Yet to Reach Many Small Communities" (PDF). U.S. Government Accountability Office. Feb 14, 2001.
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