United tells two regional airlines it will continue contract with just one: union letter

United has told two regional airlines, ExpressJet and CommutAir, that it will drop its contract with one, according to a pilot union letter seen by Reuters, in a potentially mortal blow to the losing carrier as the coronavirus pandemic guts demand. ExpressJet and CommutAir each work exclusively for United and the plan would mean one would lose its major source of revenue. United has minority stakes in both companies, which operate Embraer SA E145 50-seat planes that bring passengers from smaller markets to destinations that United itself serves on larger jets. United is among US major airlines that, until early this year, were expanding their domestic networks through contracts with regional airlines, which have a cheaper workforce. Now the coronavirus pandemic is forcing carriers to scale back growth plans and flights. United, in an emailed response, acknowledged that its relationship with regional airlines will change. "We’ve been clear for months now that we expect to be a smaller airline in response to the historic impact that the COVID-19 pandemic has had on our business. That means we’ve cut our schedules and our costs across the operation – and we do anticipate it will continue to impact the relationships we have with our regional partners," United said.<br/>