Following this week's agreement between the IBT and Republic Air Holdings and the US Airways ALPA MEC resolution regarding the MDA-Republic agreement, it appears the the sale of MDA assets can now be completed and an orderly transfer of EMB-170s can occur. This is an important part of US Airways' plan of reorganization and a restructuring step that would make a potential merger easier to complete.
Listed below is information regarding new terms between Republic's Chautauqua Pilots and the Company regarding the Shuttle America Operating Certificate, ALPA's resolution, and today's offer by Republic for Shuttle America's operating certificate.
Chautauqua Pilots Spell Out Terms For Shuttle America Deal
Tuesday, April 19, 2005
INDIANAPOLIS (Aviation Daily) - Pilots at Chautauqua Airlines are outlining their requests to airline management to ensure a smooth transition of the carrier’s Embraer 170s to the Shuttle America operating certificate if Chautauqua’s parent company opts to move the planes to avoid paying American Airlines fines.
Chautauqua started flying the planes after sister carrier Republic Airlines failed to win FAA certification in time to begin United Express flights with the -170s last fall. American’s pilots claimed that 70-seat flying violated their contractual scope clause, and eventually Chautauqua, American and American’s pilots resolved the dispute with the understanding that the -170s flying at Chautauqua would be temporary until Republic Airlines won FAA certification.
For unexplained reasons, Republic Airlines continued to experience certification delays, and earlier this month management at Republic Airlines Holding notified Chautauqu a’s pilots, represented by the International Brotherhood of Teamsters (IBT), that there was a possibility Republic Airways Holdings might acquire Shuttle America’s certificate (DAILY, April 6). Republic Airways Holdings has started paying American fines as a result of Chautauqua flying the -170s.
IBT, in a letter to Republic Airways Holdings Chief Operating Officer Wayne Heller, noted that Heller had said recently that the -170s could be assigned to Shuttle America’s certificate before Republic’s proposed acquisition of the certificate. "We understand that this would facilitate the FAA Embraer 170 certification process," said IBT’s Local 747 President and General Counsel E.E. Sowell.
The union has concerns regarding the movement of the planes before the acquisition is finalized; however, IBT said it recognized the "unique" situation and its own desire to ensure growth for Chautauqua through the potential a cquisition of Shuttle.
Temporary Relief
IBT said it plans to grant temporary relief of about three months for certain aspects of its current contract if management at Republic Airways Holdings meets certain terms. These stipulate that Chautauqua continue publishing bids for Embraer 170 Shuttle America flying before the acquisition and that no more than 10 captains and 10 first officers can fly the planes prior to "the complete purchase of Shuttle America by Republic Airways," IBT said. The union also wants all Embraer 170s on the Shuttle certificate or on firm order to be governed by the Chautauqua contract and flown by pilots on the Chautauqua seniority list "during any period of separate operations."
US Airways ALPA code-a-phone update
Tuesday, April 19, 2005
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Market Pulse: Republic Airways offers to buy Shuttle America
Thursday April 21, 8:58 pm ET
SAN FRANCISCO (MarketWatch) - Republic Airways Holdings Inc. said late Thursday that it has made an offer to buy Shuttle America Corp. from Shuttle Acquisition LLC, an affiliate of Wexford Capital LLC. Republic Airways said it has offered to purchase the company for $1 million, plus the assumption of less than $1 million in debt. Wexford Capital is the majority shareholder of Republic Airways Holdings. The deal is expected to close in May. Republic said because it and Shuttle America are controlled by a common entity, it will have to restate its results for fiscal 2002 through 2004. The company said it may have to reduce its 2004 net income in the range of $4 million to $7 million.
See Story
Regards,
USA320Pilot
Listed below is information regarding new terms between Republic's Chautauqua Pilots and the Company regarding the Shuttle America Operating Certificate, ALPA's resolution, and today's offer by Republic for Shuttle America's operating certificate.
Chautauqua Pilots Spell Out Terms For Shuttle America Deal
Tuesday, April 19, 2005
INDIANAPOLIS (Aviation Daily) - Pilots at Chautauqua Airlines are outlining their requests to airline management to ensure a smooth transition of the carrier’s Embraer 170s to the Shuttle America operating certificate if Chautauqua’s parent company opts to move the planes to avoid paying American Airlines fines.
Chautauqua started flying the planes after sister carrier Republic Airlines failed to win FAA certification in time to begin United Express flights with the -170s last fall. American’s pilots claimed that 70-seat flying violated their contractual scope clause, and eventually Chautauqua, American and American’s pilots resolved the dispute with the understanding that the -170s flying at Chautauqua would be temporary until Republic Airlines won FAA certification.
For unexplained reasons, Republic Airlines continued to experience certification delays, and earlier this month management at Republic Airlines Holding notified Chautauqu a’s pilots, represented by the International Brotherhood of Teamsters (IBT), that there was a possibility Republic Airways Holdings might acquire Shuttle America’s certificate (DAILY, April 6). Republic Airways Holdings has started paying American fines as a result of Chautauqua flying the -170s.
IBT, in a letter to Republic Airways Holdings Chief Operating Officer Wayne Heller, noted that Heller had said recently that the -170s could be assigned to Shuttle America’s certificate before Republic’s proposed acquisition of the certificate. "We understand that this would facilitate the FAA Embraer 170 certification process," said IBT’s Local 747 President and General Counsel E.E. Sowell.
The union has concerns regarding the movement of the planes before the acquisition is finalized; however, IBT said it recognized the "unique" situation and its own desire to ensure growth for Chautauqua through the potential a cquisition of Shuttle.
Temporary Relief
IBT said it plans to grant temporary relief of about three months for certain aspects of its current contract if management at Republic Airways Holdings meets certain terms. These stipulate that Chautauqua continue publishing bids for Embraer 170 Shuttle America flying before the acquisition and that no more than 10 captains and 10 first officers can fly the planes prior to "the complete purchase of Shuttle America by Republic Airways," IBT said. The union also wants all Embraer 170s on the Shuttle certificate or on firm order to be governed by the Chautauqua contract and flown by pilots on the Chautauqua seniority list "during any period of separate operations."
US Airways ALPA code-a-phone update
Tuesday, April 19, 2005
See Story
Market Pulse: Republic Airways offers to buy Shuttle America
Thursday April 21, 8:58 pm ET
SAN FRANCISCO (MarketWatch) - Republic Airways Holdings Inc. said late Thursday that it has made an offer to buy Shuttle America Corp. from Shuttle Acquisition LLC, an affiliate of Wexford Capital LLC. Republic Airways said it has offered to purchase the company for $1 million, plus the assumption of less than $1 million in debt. Wexford Capital is the majority shareholder of Republic Airways Holdings. The deal is expected to close in May. Republic said because it and Shuttle America are controlled by a common entity, it will have to restate its results for fiscal 2002 through 2004. The company said it may have to reduce its 2004 net income in the range of $4 million to $7 million.
See Story
Regards,
USA320Pilot
Well said Bud8EE
