Republic Airways Eyes Shuttle America Certificate

[USA320Pilot]

Republic Airways Eyes Shuttle America Certificate

INDIANAPOLIS (Aviation Daily) - Republic Airways Holdings is considering acquiring Shuttle America’s operating certificate as fines it must pay to American are mounting and the long-awaited certificate for its Republic Airlines subsidiary is still not on the horizon. The president of the International Brotherhood of Teamsters (IBT) Local 747 division representing Republic Airways Holdings subsidiary Chautauqua Airlines wrote to company CEO Bryan Bedford recently asking how the carrier’s contract would govern any potential combining the two carriers after Republic Chief Operating Officer Wayne Heller told Chautauqua’s employees he was thinking about obtaining the Shuttle America certificate. IBT noted it was “looking forward†to negotiations regarding a union of the Shuttle America and Chautauqua contracts “on those provisions affecting the combined work force.â€

The union also formed a merger committee to meet with Shuttle America’s pilots to agree on a combined seniority list. A source close to the union said Republic Airways Holdings might have an interest in shifting Embraer 170 flights from Chautauqua to avoid penalties it is now paying American. American’s pilots argued that Chautauqua’s 70-seat flights flown as United Express violated scope clauses in their contract that prevent American Connection carriers from flying planes with more than 50 seats. Eventually, American’s management settled its pilots dispute.

Part of the resolution required Republic Airways Holdings to pay American fines until Chautauqua’s sister carrier, Republic Airlines, obtains its operating certificate from FAA. Republic Airways Holdings paid about $300,000 in penalties during the fourth quarter of 2004 (DAILY, March 4). After the Chautauqua settlement, American Connection carrier Trans States had to agree not to fly planes with more than 50 seats; Trans States then opted to launch GoJet to fly 70-seat jets for United Express. Republic Airlines was originally supposed to fly the Embraer jets, but certification delays prevented its launch.

The airline’s original certification target was July 2004. Bedford recently said the carrier was targeting a June certification,but transitioning the 170s to Republic would take some time (DAILY, March 7). Unlike Republic’s woes in getting its FAA nod, a GoJet spokesman recently said efforts to launch the airline are “moving along quite nicely,†and the carrier should start proving runs the spring or summer to ensure its August launch (DAILY, March 15). Republic Airways Holdings lost a bid to fly additional 170s for United after the major carrier inked deals with SkyWest and GoJet earlier this week. Republic bid only on a portion of the 70 aircraft, offering to fly 15 additional 170s (DAILY, March 4).

At that time Bedford said United asked Republic to enlarge the bid, and Republic was “evaluating that.†Wexford Capital owns the majority stake in Republic Airways Holdings and also owns Shuttle America, which flies Saab 340s as United Express from Washington Dulles to about 12 cities in the northeastern and mid-Atlantic regions of the U.S. Shuttle America has run into numerous obstacles in the last few years, including a Chapter 11 filing in 2001, followed by moving its headquarters from Hanscom Field near Boston to Fort Wayne, Ind., in 2002. Contentious pilot negotiations almost caused the airline to stop operating in 2003. Airline CEO Scott Durgin said he couldn’t deny or confirm Republic’s plans.

 

[Light Years]

So, Shuttle America would merge into Chauatuqua, leaving an open cert for the 170s, or would SA fly the 170s on thier own certificate? Geez, they could barely operate the Saab when they were US Express.

And where do the US/MAA employees stand in all this? Maybe they could aviod the integration issues all together and just put MAA on the old SA certificate, seperate from the rest?

 

[sfb]

So, Shuttle America would merge into Chauatuqua, leaving an open cert for the 170s, or would SA fly the 170s on thier own certificate? Geez, they could barely operate the Saab when they were US Express.

The way I read things, Republic Airline would be subsumed into Shuttle America, which would then probably be renamed Republic Airline (crazy, huh?). The "new" Republic Airline would probably keep most of the existing Republic Airline's staff and then take over operation of the EMB-170's being operated at Chautauqua. It's confusing because the holding company, Republic Airways Holdings Inc., has a subsidiary named Republic Airline Inc., for which they are trying to obtain an operating certificate. It also appears that Shuttle America is NOT part of Republic Airways Holdings, but is instead owned by Wexford.

All of this is being driven by the AA pilot scope agreement.

 

[Rico]

Man, this is so confusing.

Let me see if I have it straight, working down from the top.

Wexford owns both Republic Holdings and Shuttle America.

Republic Holdings operates Chautauqua, but not Shuttle America.

Republic Holdings Was trying to get a new certificate for a separate operation to be called Republic Airlines...

The pilots from Chautauqua are split (but still on the same list) amoungst Chautauqua (which operates the smaller ERJ's), and what was to become Republic (which operates the E-170's). Chautauqua pilots could go from Chautauqua to "Republic", but not from Republic to Chautauqua....

And the pilots from Shuttle America are separate, not on the CHQ senority list, and at this time cannot go into either CHQ or "Republic".


Is that about right...?


Which leads to an important question.
Why does the CHQ scope provisions (everything under the CHQ CBA) apply to Republic, yet not to Shuttle America before now...?


Anyone know...?

 

[xoxo]

SHUTTLE AMERICA!!!! OH NOHHHHHHHHHHHH!!

 

[Light Years]

Let me see if I've got it down...

Wexford owns Shuttle America as well as a majority of Republic Holdings (which owns Chq). I believe they owned Midway at one point as well (in it's final last ditch incarnation as a USX operator).

Wexford bought Shuttle America when it was an independent Dash 8 operator, with the intention of reviving it as a US Airways Express carrier. They disposed of the Dash and brought on a bunch of Saab 340As that had been previously operated by Chq, and were just collecting dust in USX colors. There is not at present time a single seniority list between SA and Chq, they simply share an owner. There is no flow-through or anything for Shuttle-to-Chautauqua.

Reublic Holdings has been trying to get a certificate for Republic Airways for a couple of years now, and was to be operated by flow through Chq employees. At one point it was to be a USX operator of 145s based out of Louisville, then the 170 operator, getting around American's scope clause restricting AA Connection carriers from operating 70 seaters for anyone. Trans States is getting around this by starting GoJets for thier recently awarded United Express flying.

Republic has agreements to fly the 170s with United (already operating by Chq, incurring fines), with Delta, and is now acquiring some or all of US Airways MidAtlantic assets with agrrements for more 170s and 190s.

The spare Shuttle certificate could be used as Republic, the sole 170 operator with multiple codeshares. This would have three groups claiming the flying- US Airways MAA people are bringing the planes and the largest growth opportunity, little Shuttle is bringing it's operating certificate, and Chautauqua is part of the same holding company. Huge can of worms.

As mentioned above, they could just take the MAA assets and transfer them onto the SA cert by itself, keeping contracts, seniority etc as is for the US Airways people, but that leaves the Delta and United 170 flying homeless, unless there is some sort of fenced operation.

As far as F/As, US/MAA are AFA, Chq is Teamsters (and in negotiations), and Shuttle America is non-union. The MAA F/As all have mainline recall numbers and seniority ranging from 9/99 to 4/01. SA started operating in 98 or 99 but is extremely junior and has high turnover even for a commuter (probably why they don't have a union).

 

[Light Years]

SHUTTLE AMERICA!!!! OH NOHHHHHHHHHHHH!!

[post="260969"][/post]​

I hear ya on that one sister!

 

[Rico]

they could just take the MAA assets and transfer them onto the SA cert by itself, keeping contracts, seniority etc as is for the US Airways people, but that leaves the Delta and United 170 flying homeless, unless there is some sort of fenced operation.

Yeah, well that would kinda defeat the purpose of getting the E-170's off the CHQ certificate to save the scope fines unless they too were moved over.

Who knows

The only other option that comes to mind is the use of the PDT or PSA certificate were they to be purchased by someone in the near future.

 

[jimntx]

Man, this is so confusing.

Let me see if I have it straight, working down from the top.

Wexford owns both Republic Holdings and Shuttle America.

Republic Holdings operates Chautauqua, but not Shuttle America.

Republic Holdings Was trying to get a new certificate for a separate operation to be called Republic Airlines...

The pilots from Chautauqua are split (but still on the same list) amoungst Chautauqua (which operates the smaller ERJ's), and what was to become Republic (which operates the E-170's). Chautauqua pilots could go from Chautauqua to "Republic", but not from Republic to Chautauqua....

And the pilots from Shuttle America are separate, not on the CHQ senority list, and at this time cannot go into either CHQ or "Republic".
Is that about right...?
Which leads to an important question.
Why does the CHQ scope provisions (everything under the CHQ CBA) apply to Republic, yet not to Shuttle America before now...?
Anyone know...?

[post="260962"][/post]​

Didn't you forget the provision that stipulates "if the wind is from the south (See Paragraph II, sub-sentence 3.a for exceptions to the directional determination) and it is the 3rd Tuesday of the month, unless the month contains more than 4 Tuesdays in which case the 4th Tuesday will substitute for the 3rd Tuesday, and it has rained in Phoenix within the last 72 hours, then..."