Republic Air Unit Amends

[USA320Pilot]

Republic Air Unit Amends Code-Share Pact With US Airways

INDIANAPOLIS (Dow Jones Newswires) - Republic Airways Holdings Inc. (RJET) said Thursday that its Chautauqua Airlines unit agreed to operate regional jets at a lower cost to US Airways under an amended agreement.

Republic Airways, whose units provide connecting flights for major airlines, said the amended agreement also gives US Airways the right to terminate service for up 15 regional jet aircraft under certain circumstances.

US Airways, however, can't terminate more than two aircraft in a month, according to Republic Air's filing with the Securities and Exchange Commission.

Chautauqua Air also has the right to terminate service for a specific number of aircraft, up to 15, under some circumstances, according to the filing.

In addition, the amendments extended the term of the services agreement by one year to March 2013, according to the filing. The amended services agreement also amended Chautauqua's existing code-share agreement with US Airways, the company said.

US Airways and its parent, US Airways Group Inc. (UAIRQ), have been under Chapter 11 bankruptcy protection since September 2004. As reported, US Airways recently confirmed that it is talks with America West Holdings Corp. (AWA) about a potential merger.

Regards,

USA320Pilot

 

[Light Years]

I'm confused... what does that mean, more CHQ or less CHQ?

 

[USA320Pilot]

Light Years:

It means 15 less Chautauqua EMB-145s, which will be replaced by Air Wisonsin CRJ-200s as they are incrementally reduced from UAX, and 28 EMB-170s (25 on the line & 3 waiting for delivery) moving from MDA to Republic.

If executed, this could provide US Airways with another $110 million in liquidity and reduce the Chautauqua "fee for service" costs.

Regards,

USA320Pilot

 

[luvn737s]

Light Years:

It means 15 less Chautauqua EMB-145s, which will be replaced by Air Wisonsin CRJ-200s as they are incrementally reduced from UAX, and 28 EMB-170s (25 on the line & 3 waiting for delivery) moving from MDA to Republic.

If executed, this could provide US Airways with another $110 million in liquidity and reduce the Chautauqua "fee for service" costs.

Regards,

USA320Pilot

[post="265657"][/post]​

With strings attached! In whose best interest is it to restrict U from having a say in it's fleet flexibility, contracted or otherwise?

Expect more of this rather than less as airlines who take equity positions look out for their best interests primarily and hedge their risk with protective contract provisions. These types of contracts will only poison the waters of any additional mergers with U by making the entity less attractive.

Why are protective labor provisions in CBA's vehemently beaten down, while similar provisions put forth by outside airlines (as investors) are generally unnoticed?

 

[Light Years]

Light Years:

It means 15 less Chautauqua EMB-145s, which will be replaced by Air Wisonsin CRJ-200s as they are incrementally reduced from UAX, and 28 EMB-170s (25 on the line & 3 waiting for delivery) moving from MDA to Republic.

If executed, this could provide US Airways with another $110 million in liquidity and reduce the Chautauqua "fee for service" costs.

Regards,

USA320Pilot

[post="265657"][/post]​

Isn't 15 about what they operate for USX? If so, we could see the phase out of the ERJ145 from US Airways Express altogether. Mesa and Trans States will probably get the boot on the last Sunday before BK emergence, and CHQ would be removing thiers. USX would actually have a standardized CRJ fleet with PSA and AWAC, probably even with the swank new interiors as the AWs will be redone. Interesting.

So when, where and how is the MAA/Republic thing happening? There has been no news on it... The simplest bet would be for RPH to basically supplant the MAA operation as is onto the Shuttle America certificate, keeping it seperate and still using US Airways employees. Wouldn't it be easier to figure something else out for the CHQ 170s for UA and DL? Why don't they just ditch the AA flying anyway, it's not that much and has zero room for growth. Keep the US Airways operation seperate and avoid the headaches. All US needs is for someone else to own and operate the Ejets, and quick. Republic would have one contract RJ/SJ provider (Chautauqua) and one US Airways franchise airline (MidAtlantic) using US employees.

 

[MidwayMetrolink]

Isn't 15 about what they operate for USX? If so, we could see the phase out of the ERJ145 from US Airways Express altogether.

I believe CHQ currently has 35 ERJ's operating as US AIRWAYS EXPRESS. If fifteen get taken away per the agreement, that would leave 20 ERJ's in US colors.

So when, where and how is the MAA/Republic thing happening?

As for the when.....not sure exactly but if it goes through I would imagine it would be in the next two to five months. As far as I know, this is still just an option for US AIRWAYS to take....correct me if I am wrong. For the where......I guess the same routes you see MidAtlantic flying now. And the how.......your guess is as good as mine.

The simplest bet would be for RPH to basically supplant the MAA operation as is onto the Shuttle America certificate, keeping it seperate and still using US Airways employees. QUOTE]

Maybe they will. This is all still a mystery.

Keep the US Airways operation seperate and avoid the headaches. All US needs is for someone else to own and operate the Ejets, and quick. Republic would have one contract RJ/SJ provider (Chautauqua) and one US Airways franchise airline (MidAtlantic) using US employees.

Good ideas but again the solution is still a ways away. Boy, looking back at my response to this post I was totally unhelpful. To summarize, I don't think anyone knows anything yet, but we all will by mid-Summer.

 

[BoeingBoy]

This is pretty old news - it's all in the Republic agreement - that just happened to be mentioned in the media recently. So much for all that "inside" info....

funguy touched on this, but let me take a stab also....

The reduction from cost + 8% to cost + 5% is specifically on CHQ's Emb-145 affiliate operation - that can drop to as few as 20 airplanes under the agreement.

Jim

[post="256180"][/post]​

But MidwayMetrolink is right on the number of airplanes involved. 35 Embraers operated by Chautaugua now and that can be reduced by 15 (leaving 20).

As for when any aircraft transaction under the Republic deal will happen, I'm personally surprised something hasn't been announced already since the aircraft/slot sale is the only way for US to get any money from Republic prior to exiting BK. I can only assume one or both of two reasons for any delay:

1 - the ATSB is balking at letting US keep any of the cash generated by the sale of the Emb-170's & slots to Republic and wants all of it to go toward prepayment of the loan. No cash infusion, no hurry to complete the transaction.

2 - With the possibility of some sort of arrangement with AmWest, there is a rethinking of both the AirWis and Republic deals. AmWest has only one affiliate express operator - Mesa - operating mostly larger RJ's (CRJ700's & 900's with a few Dash 8's) while US is potentially adding two more affiliates to an already diverse group that provides express service with mostly smaller RJ's. Not consumating the aircraft/slot sale partion is about the only way to void the entire Republic agreement (though the decision to void the investment agreement is entirely up to Republic).

Jim

 

[USA320Pilot]

BoeingBoy:

BoeingBoy said: "This is pretty old news - it's all in the Republic agreement - that just happened to be mentioned in the media recently. So much for all that "inside" info....:

USA320Pilot comments: I love your smart-alceck comments, which speak loudly about your character and your message baord split personality. When would now be a good time to let go of your anger and bitterness? At 59 or 60 years old? I guess you cannot take cirticism very well can you? Too painful...I'm not surpirsed.

I simply posted a recent piece of news information and you become child-like with a smart-aleck comment. Interesting...

Regards,

USA320Pilot

P.S. My 7 and 9-year old are not smart-alecks, but others...

 

[700UW]

Very well said Piney.

This editorial does not in any way represent ALPA’s position, understanding, or sentiment, on other unions and their sincere efforts to represent their members. ALPA has received no reports, nor would it assign any value to reports, that suggest that any union is misleading their membership. The pilot author of the editorial holds no union position in ALPA. The anti-union public statements from one of our pilot-ALPA members is regrettable.

We urge all pilots to contact their reps or the Comm Center for accurate updates on restructuring negotiations and the activity of other unions. We also request that all pilots refrain from promoting any management anti-union propaganda or chastise other employees in the media. There is little to be gained from such activity other than embarrassment for yourself, your fellow pilots, US Airways, and ALPA.

Gee Who was ALPA talking about?

 

[whlinder]

Why is this referred to as a codeshare? I thought it was a fee for service contract?

 

[delldude]

whoop whoop - pull up

 

[BoeingBoy]

USA320Pilot comments: I love your smart-alceck comments

[post="265841"][/post]​

Glad I could make your day....

I simply posted a recent piece of news information and you become child-like with a smart-aleck comment. Interesting...

[post="265841"][/post]​

I'm trying to learn from the master - that'd be you. Once I get "smart-aleck" down pat I'll move on to "snide" comments.

Regards,

Jim

 

[700UW]

Well done Jim!

 

[delldude]

usa320's day in the barrel??

 

[USA320Pilot]

PineyBob:

Your comments are off-base, but I'm not going to waste my time with you. In regard to BoeingBoy, he is two-faced. He hass one demeanor on this board and a totally different one on ALPA message board.

Does he do a good job with public information? Absolutely. Does he know what airline analysts, industry observers, or reporters find out before it becomes news? No.

Regards,

USA320Pilot