Eastern Airlines said Wednesday it has canceled its contract with Orion Air Inc. to provide strike-replacement pilots, but pledged to remain flying in the event of labor troubles. Eastern, preparing for tough negotiations with the Machinists union on its expiring labor pact, had contracted with Orion in case its own pilots refused to cross picket lines, Eastern spokeswoman Karen Ceremsak said. But U.S. District Judge Barrington Parker in Washington ruled in March that the deal with Orion violated the existing contract between Eastern and its pilots union. Replacements cannot be trained until a strike begins, the judge said. Orion, based in Raleigh, N.C., is one of the largest U.S. operators of aircraft for the small package industry. Miami-based Eastern, the nation's sixth-largest airline, is a subsidiary of giant Texas Air Corp. The Transport Workers Union filed a similar suit in April, accusing Eastern of using its planes to train Orion flight attendants to break a strike. Ms. Ceremsak refused to attribute the cancellation of the Orion contract to Eastern's legal setbacks, however. The contract was terminated ``for sound business reasons,'' said Ms. Ceremsak. ``Beyond that I can't elaborate.'' The decision to end the contract does not mean that financially troubled Eastern will shut down if the Machinists walk out, the spokeswoman said. ``We do have plans to operate in case of a strike,'' she said. ``But our first priority is still reaching a settlement'' with the Machinists. J.B. Stokes, a spokesman for the pilots union at Eastern, said the federal court decisions against Eastern left the carrier with no choice. ``This is just the inevitable recognition that you have to obey court orders,'' said Stokes. ``The judge said you cannot train (replacement) pilots in any capacity until such time as there is a strike.'' The cancellation will cost Eastern about $5.5 million under a provision of the Orion contract, Stokes said. Ms. Ceremsak refused to comment on any provisions of the contract or its cancellation.
