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chipmunn

Guest
In today's Omnibus Hearing the court approved a new agreement that US Airways struck with Chautauqua Airlines and Republic Airways, to expand regional jet service by up to 58 aircraft.
The court also approved the plan where GECAS will provide US Airways $350 million in equity to start up leases on regional jets that US Airways wants to add. GECAS holds delivery positions on 50 EMB-170s with 78 options, where deliveries could begin in the fourth quarter 2003 or first quarter 2004.
Chip
 
OP
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chipmunn

Guest
Itrade asked: Is this under the auspices of J4J?

Chip answers: The ALPA Modified Restructuring Agreement says, up to 12 “Medium SJs†currently being operated by Chautauqua Airlines under another carrier’s code may be placed into revenue service by Chautauqua Airlines under the US Airways code, without immediately complying with the Filling of Vacancies provision of Attachment B-3 of the Restructuring Agreement, provided that such “Medium SJs†are placed into revenue operation under the US Airways code by February 29, 2004.

For each of the “Medium SJs†specified in the foregoing sentence that is placed into revenue operation by Chautauqua Airlines under the US Airways code no later than such date in 2004, Chautauqua Airlines or Republic Airlines must also place into revenue service at least the same number of additional “Medium SJsâ€, no later than February 28, 2005 and each such additional “Medium SJ†must be staffed entirely with pilots from the APL, provided however, that no aircraft will be placed into revenue service for Republic Airlines under the US Airways code except with the approval of the Association.

If the Filling of Vacancies 50% requirement (by the balance between the Medium SJs specified in the first sentence and the Medium SJs specified in the second sentence of this paragraph E.) is not achieved by February 28, 2005, the Company must either discontinue use of the number of code share aircraft or terminate the contract with Republic or Chautauqua Airlines as required to maintain the Filling of Vacancies 50% requirement.

In regard to the GECAS agreement, these aircraft will be flown at MDA (mainline division) and thus are not a part of J4J.

Chip
 

1ab

Advanced
Aug 21, 2002
147
0
I thought that today the judge was suppose to decide on the business plan that U submitted to emerge from bk
 

St. Leibowitz

Member
Aug 19, 2002
60
0
For the record-

Republic is an alter-ego being created by Wexford Holdings, owner of Chautauqua, in order to apply pressure to the CHQ pilots and to circumvent the fact that they declined to ratify j4j. Here it is in black and white:

"We have reached a tentative agreement with US Airways on the affirmation of our current contract covering 26 regional jets and the possible addition of up to 9 regional jets with Chautauqua. This agreement is contingent on a large number of “conditions precedentâ€￾, not the least of which is they [Airways] successfully emerge from bankruptcy. We hope that Airways will present the amendment to the bankruptcy court for approval early next week. We will not know if the agreement will be approved until January 20th at the earliest. Our Holding Company has also reached a tentative agreement with US Airways to operate up to another 23 regional jets; also assuming numerous conditions are met, including approval by the ALPA association at US Airways. Since Chautauqua cannot comply with the Jets for Jobs requirements, additional furloughed pilots from Airways would be covered under the other regional jet service agreement between the Holding Company and US Airways."
--Bryan Bedford, President and CEO of Chautauqua.

Chautauqua pilots are in contract negotiations at this time and Bedford is playing hardball. This is a message to the CHQ pilots that if they misbehave, Wexford will send the flying elsewhere. If ALPA National's position paper on Freedom were edited to replace each reference to "Freedom" with "Republic" and each reference to "ALPA" with "union", it would fit this situation perfectly. This is a great opportunity for the ML furloughs to get back into the seat, but those who consider accepting employment with Republic should also consider the motivation behind its conception.
 

autofixer

Veteran
Aug 20, 2002
1,804
241
www.usaviation.com
[blockquote]
----------------
On 1/16/2003 2:42:08 PM 1ab wrote:

I thought that today the judge was suppose to decide on the business plan that U submitted to emerge from bk
----------------
[/blockquote]Where did you get that idea...from management?
 

St. Leibowitz

Member
Aug 19, 2002
60
0
[blockquote]
----------------
On 1/16/2003 4:55:52 PM dfw79 wrote:

Interesting...alter ego airline of Chautauqua - A Republic Airways Company. So this would be like Mesa doing the flying intstead of Air Midwest. Ugh - I though Group had a complex setup. :)
----------------
[/blockquote]

Actually a closer (exact) comparison would be: Freedom doing the flying instead of Mesa.
 

dfw79

Senior
Aug 20, 2002
308
0
Interesting...alter ego airline of Chautauqua - A Republic Airways Company. So this would be like Mesa doing the flying intstead of Air Midwest. Ugh - I though Group had a complex setup. :)
 
You dont have to tell ME pal. A few years back I had a pretty good job flying Boeing's back and forth between (among other places) Philadephia and Nashville. Today that flying has been outsourced to you and your Dornier.

I'm sure if Super-Dave and Mr. Wolf can figure out a way to do it, they'll be calling World Airways tomorrow.
 
Why buy jets for the wholly owneds?

Why spend the money purchasing/leasing airplanes, stocking parts, training mechanics, training pilots, etc... when you can simply outsource the flying and recoup a portion of the revenue?

What costs more? Flying the RJs and keeping the revenue in group? Or outsourcing the RJs (and all of their associated costs) and keeping a portion of the revenue?

Dont feel bad.

Why keep mainline pilots on the property flying short-haul routes along the east coast when it is so much less expensive to outsource the flying to affiliate regionals flying popular regional jets.

See? You're just sharing in the pain. 1800 pilots and over 15,000 employees have been "outsourced" from the mainline. Now the wholly-owned regionals will participate in the "labor-friendly restructuring".
 

propjok

Member
Nov 26, 2002
25
0
you seem to be missing the point. while you guys may have 1700 pilots on the street at least you have jobs. at least some of you. if u contracts out all the flying then ALL let me say that again ALL wholly owned pilots will be on the street.
 

dfw79

Senior
Aug 20, 2002
308
0
[blockquote]
----------------
On 1/16/2003 5:16:15 PM St. Leibowitz wrote:

[blockquote]
----------------
On 1/16/2003 4:55:52 PM dfw79 wrote:

Interesting...alter ego airline of Chautauqua - A Republic Airways Company. So this would be like Mesa doing the flying intstead of Air Midwest. Ugh - I though Group had a complex setup. :)
----------------
[/blockquote]

Actually a closer (exact) comparison would be: Freedom doing the flying instead of Mesa.

----------------
[/blockquote]

How do you figure? Chautauqua is the subsidiary of Republic Airways now. This would tend to be the exact opposite of what is going on with Mesa (parent) and Freedom (subsidiary).
 

Bluestreaking

Member
Oct 15, 2002
57
0
www.usaviation.com
[P]
[BLOCKQUOTE][BR]----------------[BR]On 1/16/2003 7:34:52 PM Furloughedagain wrote:
[P]Why buy jets for the wholly owneds?[BR][BR]Why spend the money purchasing/leasing airplanes, stocking parts, training mechanics, training pilots, etc... when you can simply outsource the flying and recoup a portion of the revenue?[BR][BR]What costs more? Flying the RJs and keeping the revenue in group? Or outsourcing the RJs (and all of their associated costs) and keeping a portion of the revenue?[BR][BR]Dont feel bad.[BR][BR]Why keep mainline pilots on the property flying short-haul routes along the east coast when it is so much less expensive to outsource the flying to affiliate regionals flying popular regional jets.[BR][BR]See? You're just sharing in the pain. 1800 pilots and over 15,000 employees have been "outsourced" from the mainline. Now the wholly-owned regionals will participate in the "labor-friendly restructuring". [BR][BR][/P]----------------[/BLOCKQUOTE]
[P][/P]While we are at it, why don't we contract out all the Trans-Atlantic flying as well. It must cost a fortune maintaining and staffing a fleet of A330's and 767's. I bet "World Airways" could get the job done at half the cost.[BR][BR]
 

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