Republic Purchase Shuttle America

[USA320Pilot]

Republic Airways Holdings Announces the Purchase of Shuttle America Corporation

"Republic's decision to purchase Shuttle America is in anticipation of increased demand for the Embraer 170 and to provide Republic with the opportunity to operate aircraft larger than 70 seats such as the Embraer 190 while complying with certain scope restrictions that some of its major airline partners currently have in place."

Complete Story

USA320Pilot comments: It appears Republic has just cleared the way for 25 active US Airways EMB-170s and 3 EMB-170s awaiting delivery to be transferred to Republic. In addition, the only major airline scope clause Republic has in-place to fly the EMB-190 is with US Airways.

Meanwhile, US Airways’ POR appears to be coming more in focus.

Regards,

USA320Pilot

 

[Phoenix]

... in focus.

Regards,

USA320Pilot

The focus was clear a long time ago. Anyone who could not see that the real goal has been to replace high-paid people with low-paid people by farmig out flight service to the Replacement Jets...

Saying it is "coming into focus" now is like saying the sun is just about at full light when it is 11:30 am already.

r/

 

[SpinDoc]

The focus was clear a long time ago. Anyone who could not see that the real goal has been to replace high-paid people with low-paid people by farmig out flight service to the Replacement Jets...

Saying it is "coming into focus" now is like saying the sun is just about at full light when it is 11:30 am already.

r/

[post="268601"][/post]​

This is good. It will help to accelerate new
market development in the midwest, and
give US/HP the reach it will need after the
merger.

 

[Light Years]

Why can't they do that using US Airways employees at slave wages like they are now? Clearly they don't give two hoots about the product or reliability.

 

[SpinDoc]

Why can't they do that using US Airways employees at slave wages like they are now? Clearly they don't give two hoots about the product or reliability.

[post="268618"][/post]​

Chautauqua has better service than Mesa
or Trans States. It is easier to develop a
new market with a 70 or 90 seat plane
than it is with a 126 seat plane. Once the
loads pick up, then the 170/90 goes to
another new market and a 737 or 319
is added. Delta and Air Tran use this
principle all the time with 50 seat RJ's and
105 seat 717's.

 

[funguy2]

It could be that this was the plan all along anyways... Since Shuttle America was already controlled by Wexford, who rescued Shuttle from BK, and who controls Chautauqua via the recently created Republic Holdings company... And if you recall correctly, all of Chautauqua's prop flying for US Airways Express was basically turned over to Shuttle, when Wexford took control of Shuttle... Shuttle subsequently left US Airways and went to UAL (or was it forced, I don't recall why... but I know it did go).

Also, I believe Chautuaqua, who is currently operating EMB-170's on behalf of UAL, needs to get out of that arrangement due to scope clauses in its contract with AA. If you recall, Republic Holdings was supposed to have a startup carrier - Republic Airways - certificated to fly the E170's for UA. Shuttle America, already a United Express partner, is a viable option to solve the "fly 170's for UAL but not on the same certificate on which we fly for AA" problem, since the Republic Airways certificate has apparently not been approved.

Notice in paragraph 2, there was no mention of US Airways. Thus, its plausible that the Shuttle/Republic deal has nothing to do with US Airways, the merger, the POR, the BK, the TP, the UCT, or anything remotely related to US Airways.

 

[BoeingBoy]

It could be that this was the plan all along anyways...

[post="268644"][/post]​

As long as "all along" means since pretty recently, I agree. Going back more than a few months, I don't think all Republic's efforts to get Republic Airways off the ground was some sort of smokescreen to hide their true intentions. I think they finally gave up on "Plan A" and Shuttle America became "Plan B".

Thus, its plausible that the Shuttle/Republic deal has nothing to do with US Airways, the merger, the POR, the BK, the TP, the UCT, or anything remotely related to US Airways.

[post="268644"][/post]​

Aside from having a place to put the MDA planes (if that transaction proceeds) that will avoid the same problem Chataugua has with the AA scope, I agree. The Republic purchase of Shuttle America is all about ending the payment of scope violation fees to AA and has nothing to do with US.

Jim

 

[Light Years]

Chautauqua has better service than Mesa
or Trans States. It is easier to develop a
new market with a 70 or 90 seat plane
than it is with a 126 seat plane. Once the
loads pick up, then the 170/90 goes to
another new market and a 737 or 319
is added. Delta and Air Tran use this
principle all the time with 50 seat RJ's and
105 seat 717's.

[post="268626"][/post]​

I'm talking about 170s/190s operated by US Airways employees, as they are now, and at costs and contracts lower than most commuter airlines (see "MidAtlantic Division" for crews and "Mainline Express" for ground crews.)

Are we supposed to be thrilled that maybe a market can be developed from a 100 seater operated by someone else, to an in-house 126 seater? That aircraft family is suitable for most of the US Airways (and America West) network. Letting someone else take over the majority of the airline's flying is not a good thing. Nor is paying these outside parties guaranteed profit (giving them the upper hand and more control when it should be the opposite), rather than keeping the revenue in-house.

The 170/190 family might as well have been tailor-made for this merged entity. Too bad the company just wants to "franchise" it like everything else. What's the point in having an airline if they hardly do any of the flying?

 

[USA320Pilot]

The Republic press release said, "Republic's decision to purchase Shuttle America is in anticipation of increased demand for the Embraer 170 and to provide Republic with the opportunity to operate aircraft larger than 70 seats such as the Embraer 190 while complying with certain scope restrictions that some of its major airline partners currently have in place."

USA320Pilot comments: The only major airline scope clause Republic has in-place to fly the EMB-190 is with US Airways. Right now if Republic wants to take delivery of the EMB-190 it must be flown under the US Airways Express brand.

US Airways management has a number of challenges regarding MDA such as a relatively small fleet that does not create economies of scale, a high pilot turnover rate due to low pay that will accelerate as JetBlue brings their EMB-190s on-line this summer, and America West seniority integration issues. Thus, I would be surprised if the US Airways - Republic agreement regarding MDA does not proceed.

Regards,

USA320Pilot

 

[BoeingBoy]

USA320Pilot comments: The only major airline scope clause Republic has in-place to fly the EMB-190 is with US Airways. Right now if Republic wants to take delivery of the EMB-190 it must be flown under the US Airways Express brand.

[post="268653"][/post]​

You are correct, as far as you go with it.

Under US' scope language, Chataugua is perfectly capable of operating the 170/190 so the Shuttle America purchase is unnecessary. Unfortunately for Republic (and hence Chataugua), AA's scope language is not so forgiving.

Thus the Shuttle America purchase was a means of compliance with AA's scope language, not US'.

Jim

 

[boeing787]

USA320 and SPINDOC...you guys are absolutely pathetic. Just go ahead and let the 190s be flown by SHITAKWA. SUCH B.S.!

 

[USA320Pilot]

BoeingBoy:

I left it at US Airways' scope cluase, but you're right about the overall agreement and AA. My point is that no other legacy carrier has authroized EMB-190 flying except US Airways.

Regards,

USA320Pilot

 

[Capecod]

Why can't they do that using US Airways employees at slave wages like they are now? Clearly they don't give two hoots about the product or reliability.

[post="268618"][/post]​

Reliability??? MDA? Your kidding right? -Cape

 

[ClueByFour]

It is easier to develop a
new market with a 70 or 90 seat plane
than it is with a 126 seat plane.

[post="268626"][/post]​

Please explain then how the most profitable airline in the country develops new markets with planes seating more than 126.

 

[ClueByFour]

US Airways management has a number of challenges regarding MDA such as a relatively small fleet that does not create economies of scale, a high pilot turnover rate due to low pay that will accelerate as JetBlue brings their EMB-190s on-line this summer, and America West seniority integration issues. Thus, I would be surprised if the US Airways - Republic agreement regarding MDA does not proceed.

[post="268653"][/post]​

So you no longer believe that MDA and the E-170 represent a "competitive LCC response?"