It's Official - Shuttle America/Republic

[Airpiraterob]

all 'larger than 50 seat' flying goes to SA for now. CHQ is limited to 50 seat work by american. RP is limited to 70 seats by Delta. Once Republic (RP) gets certified and started, then the 'up to 70 seat' flying goes there....delta for certian and possibly some united. However anything over 70 seats will definitely go to SA, depending on need and company strategy, and theres no contractual limitations there. Things have been sounding big lately.

 

[AutoCars Armed]

I thought SA had been losing money hand over fist for almost the entire time since Wexford bought them... To the tune of many, many millions, certainly in the 8-figure range. That was at least part of the basis for the paycuts over the last couple of years...

And now it's a debt of "less than $1million"???

According to mgmt. SA has alegedly been operating in the black for a few months. Could be all bs from mgmt though.

 

[SlapShot]

I had heard that the United and Airways airplanes will stay on the Shuttle certificate. The Delta airplanes will go to the Republic certificate. The reason for this is to get around some of the scope language in some of the contracts. Apparently the Delta contract limits whatever company is operating them to 70 seats.

 

[HughBeamont]

Let me preface this post saying that I've had three full glasses of wine.

When I was getting my instrument and commercial licenses at Hanscom (BED) in 1999, Shuttle had just started service. Nice Captain-America Dash-8s. You pulled the APU right up to the gate and gave us something to shoot for. Sh!t, some high time flight instuctors were being hired by them. Seemed like the dream to me at the time. How things changed. A few years later they were the whipping-boy of the "who-the-f*ck owns who" brigade. That they finally became useful to elude scope speaks montains about our industry. GO! GO! GO! SHUTTLE AMERICA GO! This is a little bit like American Idol. God Speed and good luck!

Bed soon,

Hugh

 

[TheBigH]

Let me preface this post saying that I've had three full glasses of wine.

Don't we all when we post here ? I personally need a full bottle before committing to reading the crap that's posted on here ...

Congrats SA, at least somebody gets to benefit from the demise of more mainline flying ... nothing against you guys, I know it's all at the top ... Bedford has to pay his child support somehow ....

 

[I.P. Freley]

According to mgmt. SA has alegedly been operating in the black for a few months. Could be all bs from mgmt though.

Unless they made MILLIONS every month for the last few months, there's still something fishy here.

 

[Flash]

Unless they made MILLIONS every month for the last few months, there's still something fishy here.

Maybe the new CEO "Dr. Evil" Hanley was able to get "1 Million Dollars" for not unleashing anymore p.o.s. Saabs on the world!

 

[I.P. Freley]

Ya know, I hadn't thought of that...

 

[BODENE]

Sale to put Shuttle America in jet age

[size=-1]By Doug LeDuc[/size]

[size=-1][email protected][/size]

Fort Wayne-based Shuttle America Corp. plans to convert from a propeller aircraft regional carrier into a regional jet carrier through a change in ownership.

The company is owned by Shuttle Acquisition, an affiliate of the Wexford Capital investment group, which also is the majority shareholder of Indianapolis-based Republic Airways Holdings.

Republic Airways announced Thursday an offer to buy Shuttle America for $1 million, plus the assumption of less than $1 million in debt. The deal is expected to close in May, if approved by Republic’s board.

It’s an extreme makeover that will prepare the company for business growth, but executives said it was too early to predict what impact, if any, the changes could have on Shuttle America operations at Fort Wayne International Airport.

Officials at the airport have been watching the situation for weeks.

Republic said in a prepared statement it plans to add the Embraer 170 regional jet to Shuttle America’s fleet as soon as possible and phase out all of its propeller aircraft by the end of 2005 if the deal goes through.

Regional jets can fly farther than propeller aircraft, and the Embraer 170 has 70 seats – twice the number on the Saab 340s used by Shuttle America.

Those major advantages make the transformation opportunity Republic presented “about as attractive as you can get for a regional airline,” said Scott Durgin, Shuttle America’s president and chief executive officer.

Republic operates the regional carrier Chautauqua, which wants to replace at least some of its Embraer 170s with Embraer 190s, a version that seats 100 passengers.

Moving the Embraer 170s to Shuttle America after the acquisition would allow Chautauqua to make the transition without violating pilot agreements.

Chautauqua offers scheduled service on more than 700 flights daily to 75 cities in 32 states, Canada and the Bahamas. All its flights are operated under major airline partner brands, such as AmericanConnection, Delta Connection, United Express and US Airways Express. Chautauqua employs more than 2,400 people and operates 116 regional jets, including 16 Embraer 170s.

If the acquisition is approved, Shuttle America “will be a subsidiary of a very successful, larger, profitable, well-capitalized business,” said Warren R. Wilkinson, Republic spokesman. The new owner “will provide resources and support to help Shuttle America grow.”

The merger will require Republic to revise its annual financial statements for 2002, 2003 and 2004 to reflect Shuttle America results for the same periods because both companies are controlled by Wexford.

Republic said a preliminary estimate based on unaudited financial information indicated that the restatement might show a reduction of $4 million to $7 million in its reported 2004 earnings of $44.8 million.

With new capabilities, Shuttle America will serve new markets. It is unclear whether the carrier will continue operating in any of the cities it now serves.

“We serve the airports where United (Airlines) wants us to serve, and that has been and always will be fluid,” Durgin said.

Shuttle America stopped providing US Airways Express service last year after US Airways announced plans to cut its service from Pittsburgh International Airport by one-third. The change cost Fort Wayne International the regional carrier’s flights.

Shuttle America began providing connecting flights in other cities for United Airlines from Dulles International Airport in Washington, D.C., as United Express last June.

The switch reduced Shuttle America’s business volume but restored its profitability. At the peak of its volume, it had 23 planes in its fleet and 19 in scheduled service, “and we were losing money,” Durgin said.

Now, with 11 planes, including nine in scheduled service, “we’re making a little profit; it’s the difference between the contracts with United and United Airways.”

Employment at the company’s Fort Wayne headquarters and a maintenance operation has decreased to 113 from 145 a little more than a year ago.

 

[Biatch5]

My understanding about who is flying who is this.


I was called last week to do proving runs for SA. Of course, I didn't get any information out of CHq b/c they barely knew anything. All the questions basically SA and CHQ pilots have been asking eachother, no one knew the answers to. It was difficult to make a decision, should I go over to SA without knowing the outcome will be. I cant take that chance, being married with a family and all. If I was single, Hell why not for a challenge.

What I know about SA/CHQ is this. (All I have been doing past few weeks was just listening about everything going on, when people asked me my opinion, I said "well I'll just wait till I get all of the facts before I speak.")

Being that I knew nothing about the proving runs and no one was answering my questions, I called a higher up official at CHQ and askde him some questions I have been hearing the past few weeks. What I was told was this.

All of the 170s will go over to SA. WHY!? Becasue everyday we are paying a fine, so to get around the fine, we transfer all the 170s over. Makes perfect sense to me. Duh!

So basically all of the smaller regional jets will stay on CHQ.

SA will fly for United. I asked what about Delta b/c thats what I wanted and thats what I was holding out for. He said then do not bid SA because REPUBLIC will be doing the Delta flying.

And if another code share comes on, US Air, then I was told probably go on SA side.

As far as pilot integration, I have no idea.