DOT authorizes Shuttle America/RP Branded Flying

[MCOE175]

DOT Gives Shuttle America the Flexibility to Fly Solo

Shuttle America received U.S. Transportation Dept. approval to offer service independent of its fee-for-service arrangements with U.S. airlines, giving the Republic Airways Holdings subsidiary the freedom to go that route although it has no immediate plans to do so (DAILY, Dec. 18th).

In approving the request March 23, the DOT said Shuttle America told the department it had "no immediate plans" to start a self-branded service but wanted "the flexibility to respond quickly to new marketplace opportunities." Shuttle America's request was essentially identical to a request made by Republic Airways subsidiary Republic Airlines; the DOT approved that request in November 2007, but Republic still offers services solely through contracts with U.S. carriers, flying as US Airways Express and Midwest Connect.

Shuttle America currently operates 37 Embraer E-170 and 13 E-175 aircraft under fee-for-service arrangements, flying as United Express, Delta Connection and Mokulele.

The DOT said it approved Shuttle America's request because "the record indicates that Republic Airways Holdings has substantial financial resources to support [Shuttle America] in conducting independent operations." Under the conditions of that approval, if
Shuttle America does decide to conduct independent operations, it must notify the DOT at least 45 days before starting the service.

 

[PBRstreetgang]

Just waitin' for the Aloha trade mark to come up for auction.
PBR

 

[d.fitz]

Glad I moved on. This, and the loaning money to everyone under the sun, marks the beginning of the end....

 

[i fly boxes]

Pardon my ignorance with this but Could Shuttle america or whoever start operating their own airline and then "codeshare" with delta thus basically allowing more 76 seat flying by trying to go around delta scope clause?

 

[BoilerUP]

Nothing about this on Yahoo Finance...

 

[flyf15]

Pardon my ignorance with this but Could Shuttle america or whoever start operating their own airline and then "codeshare" with delta thus basically allowing more 76 seat flying by trying to go around delta scope clause?

I'd be more worried about them getting some A320s or 737s and flying them for regional rates, competing (and possibly winning) against the established majors.

 

[flyboyzz1]

doesn't delta scope prevent any regional from flying anything bigger than 76 seats even if its for another codeshare or in this case branded ops?

 

[Indy319FA]

Unless its changed since 2005. That's why ACA had to give up the DoJets when the Independence Air 319s went on the certificate. But Chatuttlepublic has 3 certificates so they could put larger aircraft on one certificate and move the DL aircraft to a different one.

 

[CesnaCaptn]

doesn't delta scope prevent any regional from flying anything bigger than 76 seats even if its for another codeshare or in this case branded ops?

Apparently not. Delta started codesharing with a big regional on the west coast called Alaska Airlines to feed their international ops.

 

[JECKEL]

There is a whole empty concourse in CVG and they will do most anything to get someone to come in.

Rumor has it they are putting jet bridges on it this summer.

 

[UnstableAviator]

As a CHQ'er, I surely hope we never attempt to do any branded flying.

 

[king10pin02]

I agree that a branded operation is a bad idea....


But loaning money to USAirways, Midwest, Muck-o-pee-pee, and Frontier is a brilliant business move. 20-25% interest per loan...better than having the money sitting in the bank idle.

 

[LearLove]

If I had an airline and 100% of my revenue came from the tit of the major(s) I provided "lift" for I don't think I'd even come close to doing something that would piss them off, no matter where the market.

 

[flyboyzz1]

I agree that a branded operation is a bad idea....


But loaning money to USAirways, Midwest, Muck-o-pee-pee, and Frontier is a brilliant business move. 20-25% interest per loan...better than having the money sitting in the bank idle.

unless one of the 4 goes belly up...not to hard to imagine at least 2 of those happening.

 

[king10pin02]

unless one of the 4 goes belly up...not to hard to imagine at least 2 of those happening.

we hold DIP for Frontier, if they go under, we get assets. (planes/gates/etc)..im sure we could sell off those assets and recoup any loss. Im sure if Midwest files bk, we would probably be one of their DIP as well.

 

[WSurf]

I agree that a branded operation is a bad idea....


But loaning money to USAirways, Midwest, Muck-o-pee-pee, and Frontier is a brilliant business move. 20-25% interest per loan...better than having the money sitting in the bank idle.

How about it sitting in a bank idle they use it to pay there pilots a better wage.

 

[CX880]

Way to go Republic. I always thought all regional pilots would be doomed to be lifers at Skywest when they took over all domestic flying in the U.S. I never thought it would be Republic. I guess those Ejets wouldn't be too bad because they look like mainline airplanes.... so much for leaving the regionals at the age of 27...

 

[king10pin02]

How about it sitting in a bank idle they use it to pay there pilots a better wage.

Our contract is old, and we have been in negotiations for well over a year. and last thing i want is an "industry leading" contract so we can end up like Comair-Horizon-Xjet....shrinking and unable to be competitive.

and to give you an example..our 190 pay tops out at $119/hr, USairways tops out at $95/hr JetBlue $110/hr (yes i know above 75 hrs for them is 150%)

I want an above AVG contract with above AVG work rules

 

[CesnaCaptn]

\
and to give you an example..our 190 pay tops out at $119/hr, USairways tops out at $95/hr JetBlue $110/hr (yes i know above 75 hrs for them is 150%)
\

Bring that $119 down to a 12 year scale and I'll be impressed. Also, if you don't get cost of living adjustments, that $119 is just a carrot. If you're a 5th year captain that $119 will only be worth $85 in 2024.

 

[Captain Morgan]

Our contract is old, and we have been in negotiations for well over a year. and last thing i want is an "industry leading" contract so we can end up like Comair-Horizon-Xjet....shrinking and unable to be competitive.

and to give you an example..our 190 pay tops out at $119/hr, USairways tops out at $95/hr JetBlue $110/hr (yes i know above 75 hrs for them is 150%)

I want an above AVG contract with above AVG work rules

I couldn't agree more. You don't want to be the best because then you have a huge target on your back. You don't want to be the last either.