E175 flights begin, E170 back to Charlotte

[PHX PHLyer]

Actaully, I believe EMBFA is correct here. I can't find a press release for this, but I believe they are coming off some of the 50 options that US has for the E170/190.

From ATWOnline, and also quoted in several other sources....takes a second to find

US Airways, and its own pilots, will fly 190s
Monday February 13, 2006
US Airways will become the second carrier in the US after JetBlue to operate the Embraer 190 after altering an existing order for 85 170s--57 of which are still to be delivered--to an order for 25 190s and 32 additional "firm 190s subject to reconfirmation," according to a joint statement from Embraer and US Airways.The deal also includes up to 50 options for other aircraft in the 170/190 family. Deliveries will resume in November. US Airways announced the original order for 170s in May 2003 in between its two bankruptcy reorganizations.

EDIT: I was thinking that EMBFA was referring to the order conversion slots from the undelivered E170s, to which I was sure that the E190s were used for that. But she was, in fact, talking about the options. Which is true, US Airways a few years ago also sold their E170 options to Republic. So yes, sort of, these could have technically been mainline jets....but they were only options and were not orders that were supposed to be sure things for US mainline. Republic excercised options that they had bought into firm orders....so while you can argue that they should be for mainline....they were just options. At least those remaining 52 undelivered planes that could have also been sold to Republic were converted into a mainline plane, albeit at very discounted pay rates.

 

[BoeingBoy]

US did not exercise the Wexford Mgt funds from Republic... they just completed the slot purchase & assimilation of the MidAtlantic division, less the employees.

100% correct - the deal with Wexford gave US the option of requiring them to invest $125 million of equity capital upon emergence but US declined to require that. Probably because both the Air Wisconsin and Wexford terms were quite a bit more attractive for them than the other outside investors got.

Jim

 

[FutureUScapt]

100% correct - the deal with Wexford gave US the option of requiring them to invest $125 million of equity capital upon emergence but US declined to require that. Probably because both the Air Wisconsin and Wexford terms were quite a bit more attractive for them than the other outside investors got.

Jim

OK, thanks for clearing that up. Do you happen to know what sort of contract terms we have in place with Republic, because there must be something in there that guarantees they will be around for a while?

I know we have to buy back some of the slots after two years, which should be up this spring, but I don't think there was any provision for being able to get the flying back unfortunately.

 

[BoeingBoy]

Off the top of my head, I think that the original Republic deal was through 2011 or 2013 at least, and the Chataugua contract was extended to match. The deal with Republic that resulted in them getting 30 of our Embraer options for the 175's allows removal of the Chataugua 145's, though.

I can't remember if US was required to or just could reacquire the LGA/DCA slots under the original deal, but there was something in the new annual report about US reacquiring the LGA slots late last year.

Jim

 

[EMBFA]

Off the top of my head, I think that the original Republic deal was through 2011 or 2013 at least, and the Chataugua contract was extended to match. The deal with Republic that resulted in them getting 30 of our Embraer options for the 175's allows removal of the Chataugua 145's, though.

I can't remember if US was required to or just could reacquire the LGA/DCA slots under the original deal, but there was something in the new annual report about US reacquiring the LGA slots late last year.

Jim

But can they can't get the planes back right? Unless they just buy them outright?

 

[BoeingBoy]

That's what I recall - the planes are gone unless Republic offers to sell them.

Jim