Republic Q&A

[dav8or]

The following is part of the weekly message from Bryan Bedford


Republic Airlines – Q&A
I’ve been inundated with emails from Chautauqua pilots about Republic Airlines. Rather than try to continue the single responses, I will try and address those questions in this update.

Q. What is Republic Airlines?
A. Republic Airlines is a start up airline that will operate as US Airways Express.

Q. Why is Republic flying RJ’s for Airways?
A. Because it will adopt the Jets for Jobs [J4J] pilot hiring protocols.

Q. How many RJ’s will Republic operate?
A. Between 20 and 23 aircraft.

Q. Will Chautauqua get any more RJ’s for Airways?
A. Yes, between 9 and 12 additional aircraft.

Q. How can Chautauqua get more RJ’s with out complying with the J4J protocols?
A. Because Chautauqua’s J4J pilot hiring liability will be absorbed by Republic.

Q. Isn’t Republic an “alter-ego” carrier?
A. No. Republic will be a union carrier and it will comply with J4J.

Q. If there were no Republic would Chautauqua get all the new RJ’s?
A. No, if there were no Republic, there would be no new RJ’s for anyone.

Q. If Chautauqua pilots had accepted J4J would there still be a Republic?
A. No, it would not have been necessary.

Q. Is it too late for the Chautauqua pilots to reverse their decision on J4J?
A. Yes, because Republic has given Airways a lower cost deal than Chautauqua’s.

Q. Could Republic operate planes for any of our other code-share partners?
A. No. Chautauqua is the exclusive provider for AMR, AWA and DAL.

Q. Could Republic operate for a new code share partner?
A. Yes, if Airways consents.

Q. Are there any plans to expand Republic beyond Airways?
A. No.

Q. If Airways liquidates will there still be a Republic?
A. No, there would be no need since there would be no new RJ’s for Airways.

I think this answers the most commonly asked questions about Republic. While I hope this information addresses many of your concerns, I feel it is equally important to understand how we got here. There is a general misperception that Chautauqua and the US Airways ALPA MEC negotiated the J4J protocols. We did not; in fact we were not involved at all. The negotiations were between US Airways management and their ALPA MEC. When the protocols were released, your union tried to negotiate with APLA to improve the terms to address your concerns. ALPA refused to make any modifications. Regardless, your union sent the matter out to you for a vote. They acted responsibly and in your best interests. I tried to address your concerns as well, but to no avail the matter was rejected. For what it’s worth, I think the right decision was made, but for the wrong reason. Our pilots rejected the matter over “fairness” issues. I was more concerned about the culture problems of integrating two very different pilot groups and still trying to maintain our culture of safe and reliable operations. In the current program, I feel everyone gets the best of both worlds. Chautauqua get growth RJ’s with Airways without the J4J protocols complications. And the Airways pilots who are out of work will get new regional jet jobs in their very own airline called Republic. Tom Hanley, the former President of US Airways’ Express Division is the new President and COO of Republic. Republic Airlines will be headquartered in Louisville, KY.

 

[ifly4food]

ALPA can't support the CHQ pilots and won't have much "holy hell" to raise since Chautauqua pilots are represented by the Teamsters.

Will Republic be Teamsters or ALPA?

 

[~~~^~~~]

Ifly -

Was it over when the Germans bombed Pearl Harbor? Hell No!
Er.. Germans? ... Oh' Never mind he is on a roll..."

Post quietly deleted.

Still, management just made a huge end run around a the CHA pilots' vote and IMHO abrogated their collective baragining agreement. Lets see how their union stands up. If they stop this then we all might have a viable choice to make.

 

[Brother Francis]

Ifly-

ALPA. And they could slam the brakes on this easily by refusing to condone it.

Fins-

Not before I saw it. You were absolutely correct.

Looks like some behind-the-scenes discussion occurred. That makes me curious. Why the deletion, guys?

 

[surplus1]

Different Perspective - Part I

Republic Q&A
The following is part of the weekly message from Bryan Bedford

Interesting. Is not Mr. Bedford the CEO of the holding company that will operate both Chautauqua and the new Republic Airlines? It should be recognized that his replies to alleged questions are no more than a biased response in support of the management perspective.

Here (in bold) is a different set of "answers" to the same questions. Admittedly they are "biased" to a different perspective, i.e., that of a union pilot who sees this management maneuver, ironically facilitated by a "union", for what it is -- an "end run" designed to circumvent the decision of Chautauqua's pilots and bypass their collective bargaining agreement. While I would expect management to do that, what is unacceptable is the fact that the largest pilot "union" not only supports this concept but also is responsible for creating the Jets for Jobs protocol that motivates it. Shame. In the following, MA = My answer.

Republic Airlines – Q&A
I’ve been inundated with emails from Chautauqua pilots about Republic Airlines. Rather than try to continue the single responses, I will try and address those questions in this update.

MA. You ] SHOULD be inundated and with more than emails. The IBT and Chautauqua's pilots should take every action legally available to them to prevent this effort to negate their collective bargaining rights. The "union" pilots furloughed from USAirways should decline to accept positions at this "new" airline and not join in the effort to abrogate the seniority and contract of the Chautauqua pilots. If they do not, they are no different than the group of Mesa pilots and USAirways furloughees that willingly circumvented the contract of Mesa pilots by accepting positions at Freedom.

Q. What is Republic Airlines?
A. Republic Airlines is a start up airline that will operate as US Airways Express.

MA. Republic Airlines is a start up alter ego airline created for the express purpose of transferring the jobs, seniority and bargaining rights of Chautauqua's pilots to satisfy ALPA, the UMEC and a group of pilots furloughed by US Airways. Its purpose is to facilitate the predatory behavior of one pilot group, represented by a different union and to capitalize on the opportunities provided by the ALPA's position. .

Q. Why is Republic flying RJ’s for Airways?
A. Because it will adopt the Jets for Jobs [J4J] pilot hiring protocols.

MA. Because Chautauqua pilots declined to abrogate their seniority and compensation (contract) in favor of furloughed USAirways pilots. Jets for Jobs (J4J) is an outrageous creation of ALPA and the UMEC that challenges every union ethic. Jets for Jobs is predatory and designed to violate the rights of "regional" union members in favor of furloughed mainline pilots. Jets for Jobs has brought this about by coercion of the ALG, PDT and PSA MEC's/pilots, taking advantage of the bankrupt Midway pilots, coercing the Mesa pilots (faced with the ALPA Scope motivated Freedom alter ego), and finally, generating the newly created Republic Airlines.

Q. How many RJ’s will Republic operate?
A. Between 20 and 23 aircraft.

MA. Approximately 200 - 230 jobs -- effectively transferred from Chautauqua pilots to furloughed USAirways pilots.

Q. Will Chautauqua get any more RJ’s for Airways?
A. Yes, between 9 and 12 additional aircraft.

MA. They should be getting between 29 and 35 additional aircraft, if J4J did not exist they most probably would.

Q. How can Chautauqua get more RJ’s with out complying with the J4J protocols?
A. Because Chautauqua’s J4J pilot hiring liability will be absorbed by Republic.

MA. Chautauqua in fact has no "hiring liability" to J4J -- unless management deliberately decides to sacrifice the rights of Chautauqua pilots in favor of furloughed USAirways pilots. Apparently management has done just that. Otherwise, there would be no Republic Airlines.

Q. Isn’t Republic an “alter-ego” carrier?
A. No. Republic will be a union carrier and it will comply with J4J.

MA. YES! This management response is blatantly untrue. It makes no difference whether Republic is a "union carrier" or a non-union carrier. It is still an alter-ego airline, created for the express purpose of circumventing the collective bargaining agreement of the Chautauqua pilots, as represented by the IBT. Management is NOT obligated to comply with J4J -- in merely wants to and is willing to sacrifice the Chautauqua pilots in order to do so. ALPA and the UMEC have effectively put a "price" on the heads of Chautauqua pilots and their contract. Management is paying that price to get the business and selling out Chautauqua employees in the process. That is why this alter ego airline has been created.

Q. If there were no Republic would Chautauqua get all the new RJ’s?
A. No, if there were no Republic, there would be no new RJ’s for anyone.

MA. That answer is pure speculation. If there was no Jets for Jobs (J4J) there would be no Republic. USAir Group would still require the same number of "new RJ's". USAir Group's "need" for new RJ's is not dependent on J4J. Jets for Jobs is nothing more than ALPA's way to transfer the "new jobs" from regional pilots to mainline pilots. It has nothing to do with how many new RJ's USAirways may need. The Jets for Jobs Protocol is refined coercion and ALPA and the UMEC are its authors.

Q. If Chautauqua pilots had accepted J4J would there still be a Republic?
A. No, it would not have been necessary.

MA. That's right. There would be no Jets for Jobs protocol if the ALPA and the UMEC were not engaged in predatory coercion and therefore, there would be no need to create the alter ego airline called Republic.

Q. Is it too late for the Chautauqua pilots to reverse their decision on J4J?
A. Yes, because Republic has given Airways a lower cost deal than Chautauqua’s.

MA. That's probably true. What he is really saying is that the "lower cost" of Republic Airlines will probably be used against Chautauqua's pilots who, if they don't give up what little they have now, will ultimately see more of their jobs and equipment transferred to Republic Airlines, to be flown by furloughed USAirways pilots. Chautauqua will shrink and Republic will grow. Thanks to ALPA, the UMEC and Jets for Jobs and, last but not least, the opportunism of Chautauqua management.

Q. Could Republic operate planes for any of our other code-share partners?
A. No. Chautauqua is the exclusive provider for AMR, AWA and DAL.

MA. How do we know if that is true? Have any of us seen the contracts between Chautauqua and AMR, AWA or DAL? Do those contracts prohibit Republic from contracting with any one of those airlines? I don't know, but I doubt it. If Republic can offer a "lower cost deal" to USAirways, then it can also offer a "lower cost deal" to AMR, AWA and DAL. What prevents the transfer of Chautauqua's present contracts to Republic? I doubt that anything does. This maneuver (the creation of Republic) may be triggered by Jets for Jobs, but it also conveniently makes it possible to transfer Chautauqua flying to Republic and by pass the CBA of Chautauqua's pilots. Don't be fooled by wolves in sheep's clothing. "If you make yourselves sheep, the wolves will eat you." - Benjamin Franklin-

Continued in Part II

 

[surplus1]

Different Perspectives - Part II

Q. Could Republic operate for a new code share partner?
A. Yes, if Airways consents.

MA. You bet!. And what makes anyone think that they would not? There are lots of regional airlines that have contracts with more than one major airline. What makes you think that Republic will be different? What about USAirways codeshare partner United? Aren't they already looking for "new regional partners"? Don't be fooled. As long as USAirways gets what it wants, it will not care who else Republic may agree to contract with in the future. Republic's gain will equal Chautauqua pilot's pain. Freedom contracts with AWA and, based on the new Mesa TA, will soon contract with USAirways as well. It's only a matter of time before Republic finds additional opportunities.

Q. Are there any plans to expand Republic beyond Airways?
A. No.

MA. That's funny. Does this guy think you're that stupid? If one year ago you had asked "are there any plans to create an alter ego called Republic", what do you think management's answer would have been? How about, No. "Plans" change. This should not fool Chautauqua pilots nor should it fool anyone else. Jets for Jobs has created a nightmare for regional pilots and it is no accident. It's a deliberate attempt, courtesy of the ALPA, to transfer "Regional Jet" jobs from regional pilots to mainline pilots. Management is simply taking advantage of it.

Q. If Airways liquidates will there still be a Republic?
A. No, there would be no need since there would be no new RJ’s for Airways.

MA. Really? Well, maybe if USAirways liquidates before Republic gets started, then Republic may not start. But what happens if USAirways liquidates after Republic is already operating 23 jets? Think they'll just disappear? I don't think so. Republic will simply sign another "lower cost" agreement with somebody else, undercutting some other pilot group's contract. This "plan" is not good for any of us. Not today and not tomorrow. Jets for Jobs and the mess it has created is a bad deal for ALL union pilots.

While I hope this information addresses many of your concerns, I feel it is equally important to understand how we got here. There is a general misperception that Chautauqua and the US Airways ALPA MEC negotiated the J4J protocols. We did not; in fact we were not involved at all. The negotiations were between US Airways management and their ALPA MEC. When the protocols were released, your union tried to negotiate with APLA to improve the terms to address your concerns. ALPA refused to make any modifications. Regardless, your union sent the matter out to you for a vote. They acted responsibly and in your best interests. I tried to address your concerns as well, but to no avail the matter was rejected.

MA. While I sincerely wish that I could disagree with that statement regrettably I cannot. Republic Airlines is the creation of management. However, there is little doubt that this effort to circumvent the CBA of Chautauqua's pilots is the direct result of a policy adopted and carried out by the ALPA and the UMEC, i.e., Jets for Jobs.

I support the USAirways line pilots, I regret their furlough and I agree with their efforts to obtain new jobs for furloughed U pilots. In that the changes in equipment that will be deployed in the service of USAir Group in the future represent a "shift" in USAirways flying, I DO believe that the furloughed U pilots should have access to the new jobs. I DO NOT BELIEVE THAT THIS ACCESS SHOULD COME AT THE EXPENSE OF THE PILOTS OF AFFECTED REGIONAL CARRIERS. ALPA could have taken a very different approach. ALPA could have gained the support of regional pilots. ALPA could have guaranteed the preferential employment of furloughed U pilots. ALL of this could have been done, I believe, without the abrogation of the seniority of affected regional pilots, without the mandated higher pay for the same job (which abrogates regional pilot contracts0, without the alienation of regional pilots, without the coercion of regional pilot groups, and without the creation of the Jets for Jobs protocols in their current format.

ALPA's total disregard for the interests of regional pilots in this matter, has motivated management(s) to "invent" union alter ego airlines and non-union alter ego airlines, including the creation of Mid Atlantic Airlines as a U subsidiary, that now threaten the interests of union pilots, be they ALPA members or non-ALPA members. In my opinion, the end does not justify the means. Jets for Jobs was a bad idea and remains a bad idea. That the largest pilot "union" in our nation supports it is little more than a blatant manifestation of that union's discrimination against regional pilots and its disregard of their interests..

Jets for Jobs is the evolution of misguided and flawed Scope policy that has both failed to protect mainline pilots and simultaneously injured regional pilots. That ALPA's leaders continue to pursue this course is absurd in the extreme.

For what it’s worth, I think the right decision was made, but for the wrong reason. Our pilots rejected the matter over “fairness” issues. I was more concerned about the culture problems of integrating two very different pilot groups and still trying to maintain our culture of safe and reliable operations. In the current program, I feel everyone gets the best of both worlds. Chautauqua get growth RJ’s with Airways without the J4J protocols complications. And the Airways pilots who are out of work will get new regional jet jobs in their very own airline called Republic.

For what it's worth, I also think the right decision was made by Chautauqua pilots and for the right reasons. To me, it is not a question of "fairness". It’s a question of protecting their seniority and their contract. There is no way that Chautauqua pilots (or any other regional pilot group) can "agree" to give 50% of new vacancies at their airline to USAirways pilots with "super seniority", without abrogating their own seniority. There is no way they can agree to paying more money to a USAirways pilot than a Chautauqua pilot, for the same job, without abrogating their contract. There is no way they can agree to furloughing a Chautauqua pilot, with more seniority, before a U pilot is furloughed, without abrogating their seniority and their contract. Simply put, that's rejecting J4J for all the right reasons.

In the "current program", i.e., Republic Airlines, two people get the "best of both worlds" --- management and the U pilots. The Chautauqua pilots get the dirty end of the stick. First from Jets for Jobs and then from the alter ego airline. No matter how you look at it, it sucks. Perhaps Mr. Bedford could have done us all a favor by remaining silent and avoiding the attempt at smoke and mirrors.

Best wishes to CHQ pilots.

 

[~~~^~~~]

Excellent post - thanks for the work!

 

[dav8or]

Q. Why is Republic flying RJ’s for Airways?
A. Because it will adopt the Jets for Jobs [J4J] pilot hiring protocols.

Q. How many RJ’s will Republic operate?
A. Between 20 and 23 aircraft.

Q. Will Chautauqua get any more RJ’s for Airways?
A. Yes, between 9 and 12 additional aircraft.

If Republic is formed to cover the 50% of the flying done by U pilots per J4J why is Chq not getting 50% of the jets?


Q. Is it too late for the Chautauqua pilots to reverse their decision on J4J?
A. Yes, because Republic has given Airways a lower cost deal than Chautauqua’s.

How can they give a lower lower price and still pay both seats Capt pay? What is 1st year pay at Republic for a captain $20.

 

[waka]

Disclaimer; This post was written on a little Knob Creek and water

If Republic is CHQ's equivalent of Mesa Air Group's 'Freedom", then as far as I can tell, CHQ pilots would be hypocrites to complain as long as CHQ is flying routes that would go to furloughed Eagle pilots.

Also, if my angle is correct, is the existence of Republic unethical to CHQ pilots if none are displaced? After all, Republic Airways Holdings Inc. is officially a seperate entity. (?)

I'm not a regional pilot so I could easily be missing something here. If so, (I realize that folks get really emotional on labor disputes) don't get mad or smart a$$, just give me your opinion. I'm just trying to learn more about this.

Unrelated question;
I gathered that Republic is entirely dependent (for now) on US Airways. Given US Airways current condition, it doesn't sound like a smart investment and seems risky to those seeking employment with Republic. What do ya'll think?

 

[~~~^~~~]

It is risky. The pilots will be furloughed US Air pilots, so they really don't have much to lose at the moment.

The larger risk is on those who sign for the aircraft and lease them to CHA. Several of the "jets for jobs" schemes have already failed as lending institutions figure out this is not a business model that warrants lending money for new aircraft at 20 to 25 million per airframe.

CHA's management (treasury and finance) is not the brightest of the bunch. They grab at any opportunity and this "opportunity" is par for them. A couple of years from now we shall see if it is a viable deal. Obviously things could change over night, much less can anyone expect this deal to work for the years it takes to finance a new jet and repay the costs of starting under a new certificate. If it was such an easy money maker, US Air would run this in house.

Both ASA and Comair looked at the Orlando operation and decided serving hubs ( away from the Florida leisure fares ) was far more profitable than MCO. However CHA could not get in there fast enough while Rademacher and Barnette laughed all the way to the bank.

 

[Brother Francis]

Compare and contrast the "Republic Q & A", released by Bryan Bedford on January 31, 2003 with the following comments attributed to Tom Hanley, President and COO of Republic Airlines, as published on January 31, 2003 in the Louisville Courier Journal article entitled "Kentucky Courts Start-up Airline" (Full article: http://www.courier-journal.com/business/news2003/01/31/bu013103s358353.htm )

"Hanley said Republic will launch the new airline with 20 regional jets, which seat 50 passengers. The jets are already owned by Republic's parent company, Republic Airways Holdings Inc."

"Republic would contract with major airlines to shuttle passengers from small and medium sized
airports to hub airports."

"Hanley said Republic's parent company, which operates Chautaqua Airlines in Indianapolis, is expanding at an opportune time because major airlines -- facing the financial and passenger fallout from the Sept. 11 terrorist attacks -- are increasingly looking to smaller regional jet companies to connect their hubs with smaller cities."

"'Our business plan is to be attractive to a number of carriers,' Hanley said."

"'Though Republic would start with 20 planes, the company hopes to build up to 30, 40 or 50,' Hanley said."

"Hanley said Republic would be similar in operations to it sister company, Chautauqua, which provides service from smaller cities into hubs operated by American and Delta airlines, among others."

 

[I.P. Freley]

CHQ??

"Those jets should be flown by Chautauqua's pilots. Not the subsidiary start up of the week."

Forget this Chautauqua noise, send some o' them jets over to Shuttle America.

Other than the fact that we haven't been offered J4J (to the best of my knowledge), I can't imagine why they would go to all the trouble to start up another operation under the Wexford banner when they can just use US. It's not like we have an unfavorable pay scale or anything...

 

[CHQdude]

AX flying

Waka,

Here's the deal with American Connection. CHQ was flying TWE jets out of STL before American bought TWA. Once that happened we kept flying out of STL. Eagle was not there...we were. I guess we should've furloughed a bunch of pilots and handed the jets over right??? Come on. By the way, with that philosophy the TWA mainline guys should have been fired and eagle guys should be flying those TWA jets w/ the flow through. right???

Thanks surplus1 for taking the time to post that message. It explains thoroughly the rut the CHQ pilots find themselves in at this time.

I find one thing hard to believe....that republic offered a lower cost deal. Will U furloughed guys fly for less than CHQ wages??? why? Any potential Republic pilots care to respond??

Finally will Republic pilots be treated like freedom pilots even though they are union? Or will people look away?

Any thoughts?

 

[dav8or]

Disclaimer; This post was written on a little Knob Creek and water

If Republic is CHQ's equivalent of Mesa Air Group's 'Freedom", then as far as I can tell, CHQ pilots would be hypocrites to complain as long as CHQ is flying routes that would go to furloughed Eagle pilots.

Also, if my angle is correct, is the existence of Republic unethical to CHQ pilots if none are displaced? After all, Republic Airways Holdings Inc. is officially a seperate entity. (?)

I'm not a regional pilot so I could easily be missing something here. If so, (I realize that folks get really emotional on labor disputes) don't get mad or smart a$$, just give me your opinion. I'm just trying to learn more about this.

Unrelated question;
I gathered that Republic is entirely dependent (for now) on US Airways. Given US Airways current condition, it doesn't sound like a smart investment and seems risky to those seeking employment with Republic. What do ya'll think?

I disagree with your post and agree you must learn more on the issues proposed but what disturbs me most is that you are diluting good bourbon with water.

 

[megreene]

If the new Republic is going to be contracted at a lower cost than Chautauqua, then what will the payscales for the mainline guys be like. It can't be that much higher than current payscales for the regionals, or they could be cutting into profit margins. Even more so, would a mainline guy take a HUGE pay cut to fly that which he protested before 9-11? Just wondering.

 

[dav8or]

If the slots can't be filled by U pilots then the will be open to anyone. There are still plenty on hungy CFI's that would jump at the chance even at lower than the low wage paid a CHQ.

 

[megreene]

So, if the Republic slots are not filled by mainline USAIR guys, then what is the defference (besides equipment) between Republic and Shuttle America?

 

[B190Captain]

If the new Republic is going to be contracted at a lower cost than Chautauqua, then what will the payscales for the mainline guys be like. It can't be that much higher than current payscales for the regionals, or they could be cutting into profit margins. Even more so, would a mainline guy take a HUGE pay cut to fly that which he protested before 9-11? Just wondering.

I am wondering the same thing.

 

[BE90CPT]

Has the Creation of the new Alter-Ego airlines in fact created an ugly new adaptation to the SCAB? A SCAB is someone willing to cross a picket line to work.

These US Airways Pilots are doing the same thing... They are bypassing a companys contract in order to work.

Same difference in my book.... I would say then that US AIRWAYS Furloughed Pilots that take these jobs should be black listed and i hope that US Airways Mainline pilots would feel the same way.

 

[RUhiring?]

Pay

The J4J protocol does not state that both pilots will be paid Captain rates. The FO's will be paid the highest FO rate (12 yr, 15yr, wherever the contract tops out), and the captains will be paid captain rates.....starting at first year.

The original J4J deal was to have both the FO and Cap. paid at Captain rates, but this was changed during the second round of management thefts (aka....cost cutting). Which, by the way, was not voted on by the US pilots, only by the MEC.