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By Scott Hamilton

Nov. 22, 2024, © Leeham News: Embraer doesn’t see any changes in the US airline labor contract Scope Clause for the foreseeable future. This means that the E175-E1, equipped with previous generation engines, will remain in production for the same period.

Arjan Meijer, president and CEO of Embraer Commercial Aircraft. Credit: Embraer.

The E175-E2 with current generation Pratt & Whitney Geared Turbo Fan engines is stillborn.

The Scope Clause is a long-standing contract provision for American, Delta, United, and Alaska airlines that restricts the passenger capacity, weight, number of aircraft, and sometimes the operating range of regional aircraft that may be operated by airline subsidiaries or independent regional carriers on behalf of the mainline airline.

The Scope Clause aims to protect higher-paying pilot jobs from being farmed out to lower-paid pilots flying regional aircraft.

Airline managements see a cost benefit to farming out these jobs. They also recognize that many markets can’t support bigger airliners, yet these markets are crucial to feeding the hubs that dominate the US airline industry.

Embraer is now the only manufacturer outside China and Russia producing a regional jet designed specifically for these markets. The E1 entered service in 2004. The company launched the E2 program with a new engine, updated systems, and aerodynamic improvements only nine years later. The smallest original E-Jet, the E170, was dropped. The E175/190/195 was offered as the E2.

However, US unions refused to alter the Scope Clause to allow the E175-E2 to replace the E175-E1 to accommodate the heavier weight of the E2, which exceeded Scope restrictions by only a few tons due to heavier engines. Thus, Embraer put the E175-E2 on indefinite hold and continued to sell updated E1s to US airlines.