United Airlines reached a tentative agreement with the Association of Flight Attendants (AFA-CWA) to overhaul its regional operations. The deal allows United to establish its first wholly-owned regional subsidiary to fly under the United Express brand. This transition moves the airline away from its exclusive use of third-party regional operators.
The agreement permits the new subsidiary to pay flight attendants at lower rates than mainline employees. United expects this structure to generate substantial cost savings. The change brings United’s business model in line with rivals American Airlines and Delta Air Lines.
The deal remains subject to ratification by more than 30,000 flight attendants.