CHICAGO- United Airlines (UA) has reached a tentative agreement with over 30,000 flight attendants, introducing a major shift in how the carrier may staff regional operations. The deal, made public late Friday, includes a provision allowing United to establish its own regional airline under the United Express brand.
Under the new agreement, flight attendants working for this potential regional subsidiary could earn nearly 50% less than their mainline counterparts, reigniting debate over the two-tier pay model long criticized by the Association of Flight Attendants (AFA-CWA).
United Airlines Closer to Launching Own Regional Carrier
For years, United Airlines has stood apart from its Big Three rivals, American Airlines (AA) and Delta Air Lines (DL), by not operating a wholly owned regional subsidiary. American operates through Envoy Air, Piedmont, and PSA Airlines, while Delta runs Endeavor Air. United has instead relied on third-party operators such as Republic Airways and Mesa Air to carry out United Express flying.
The core reason United lacked its own regional arm was a protective clause in the AFA-CWA contract, which banned the carrier from creating an “alter-ego airline” employing flight attendants under a separate, lower-paying contract.
The newly proposed tentative agreement keeps this ban largely intact but carves out one significant exception: a regional carrier operating under the United Express brand.
The revised Letter of Agreement reads:
The Company may create or acquire a controlling interest in and Control of a regional carrier conducting United Express Flying.”
It further states that such flights may be staffed by flight attendants of that regional carrier, unless operated by United pilots, in which case mainline United flight attendants under the existing agreement would be required.
According to PYOK, this concession stands out because the union successfully blocked several other management proposals in the same negotiation, including a new scheduling system and the removal of Personal Time Off for mainline crew members. The United Express carve-out, however, made it through.
The Two-Tier Pay Debate
The AFA-CWA has been vocal about the regional pay gap for years. AFA president Sara Nelson called the two-tier model “cruel” and “immoral” in September 2024, arguing that regional flight attendants fly the same routes and deliver the same service as mainline crew while earning significantly less.
Despite these efforts, closing the pay gap between regional and mainline flight attendants has proven difficult across the industry.
The tentative agreement does not change this dynamic. If United proceeds with launching its own regional carrier, new hires could earn close to 50% less than their United mainline colleagues, working under a separate contract with fewer benefits.
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Why a Wholly Owned Regional Carrier Makes Business Sense
Owning a regional subsidiary offers airlines more than just lower labor costs. Direct operational control, flexibility in scheduling, and reduced dependence on third-party contractors all factor into the equation. There is also no risk of a contract partner walking away in favor of a competing airline.
A wholly owned subsidiary also provides a practical workaround for pilot contract scope clauses, which restrict the use of larger regional jets by mainline carriers. This became a relevant issue for United in 2022 during its expanded partnership with Mesa Air, when scope limitations complicated fleet decisions.
Whether United will actually move forward and launch its own regional carrier remains uncertain. The tentative agreement only grants permission; the decision to act on it is a separate business call.
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