CHICAGO (Reuters) – United Airways has advised two regional airways, ExpressJet and CommutAir, that it’ll drop its contract with one, in keeping with a pilot union letter reviewed by Reuters, in a probably mortal blow to the shedding provider because the coronavirus pandemic guts demand. A United Airways airplane is seen within the background as a passenger sits in Terminal C of the IAH George Bush Intercontinental Airport amid the coronavirus illness (COVID-19) outbreak in Houston, Texas, U.S., July 21, 2020. REUTERS/Adrees LatifExpressJet and CommutAir every work completely for United and the plan would imply one would lose its main income. Chicago-based United has minority stakes in each firms, which function Embraer SA E145 50-seat planes that carry passengers from smaller markets to locations that United itself serves on bigger jets. United is amongst U.S. main airways that, till early this yr, had been increasing their home networks via contracts with regional airways, which have a less expensive workforce. Now the coronavirus pandemic is forcing carriers to reduce development plans and flights. United, in an emailed response, acknowledged that its relationship with regional airways 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 stated. It declined to supply extra particulars. In a letter to ExpressJet pilots final week, the union chairman warned of developments that might have a “dramatic impact” on the way forward for the airline following a name with administration informing labor leaders that United had stated it will solely require one E145 provider shifting ahead. “While ExpressJet offers many attributes that make us an attractive long-term partner, cost has reared its ugly head once again and we have been asked by our management team to close the gap between our costs and those at CommutAir,” the letter stated. ExpressJet has a extra senior pilot group than CommutAir and a bigger fleet of about 95 planes, versus round 37 at CommutAir. Neither responded to requests for remark. United had contracts with eight feeder carriers that flew underneath the banner of United Specific, in keeping with its 2019 annual report. Considered one of them, Trans States Airways, ceased operations in April. In 2019, United and United Specific operated greater than 1.7 million flights carrying over 162 million clients. United had partnered with ExpressJet and CommutAir for the Aviate pilot recruitment and improvement program it launched final yr when the business was bracing for a pilot scarcity. Now it’s going through a pilot surplus. In the meantime, two of American Airways’ wholly-owned regional subsidiaries, Envoy and PSA, have issued notices of potential furloughs to round 2,000 and 1,000 staff, respectively, spokeswomen for the 2 regional carriers stated on Monday. United and American have additionally issued furlough warnings to their very own staff, with greater than 60,000 jobs on the road between the 2 in October and not using a recent U.S. bailout. Modifying by Leslie Adler and Jacqueline WongOur Requirements:The Thomson Reuters Belief Rules.