Delta pilots oppose big regional jets, could be issue for Embraer, Mitsubishi

Delta pilots are expected to keep existing rules in their new labour contract that prevent the carrier from flying aircraft above a certain weight on regional routes, in a blow to Embraer and Mitsubishi Heavy Industries, whose latest models exceed that limit. The pilots' new contract will keep what is known as a "scope clause," which restricts planes heavier than 86,000 pounds and with more than 76 seats from being flown on regional routes, two sources familiar with the matter said. Voting results on the new contract are expected on Dec. 1. The clause effectively protects well-paid pilot jobs at major airlines, as it prevents the carrier from using bigger planes on outsourced regional routes, which generally pay less well and have inferior working conditions. When planemakers such as Brazil's Embraer and Japan's Mitsubishi designed their latest regional jets, with heavier but more fuel-efficient engines, they expected the scope clause to have loosened, but unions have managed to hold on to it. UBS analyst Darryl Genovesi said it was unlikely the carriers would fly the E2 on only mainline routes, due to higher costs. "This puts the viability of the E175-E2 at risk since most of the demand for it originates at those three airlines," Genovesi wrote in a note to clients. Regional carrier SkyWest Inc , which operates flights for Delta, among others, is the launch customer for the E175-E2, with 100 firm orders.<br/>