- Nov 5, 2005
- Total Time
Republic Airways Announces Fleet Simplification Plan
Republic Airways Holdings Inc. (NASDAQ: RJET - News) today announced it will transition the regional service operated by Lynx Aviation Bombardier Q400 turboprop aircraft to Embraer 170 and 190 jet service operated by Republic Airlines. The Company will remove three Q400 turboprop aircraft from service effective April 6. Another three aircraft will be removed from service on April 19. In addition, the Company will terminate the leases of seven smaller regional jets and return them to the lessor.
The transition to jet service will improve the Company’s ability to operate in highly contested markets in which the Q400 operates at a competitive disadvantage to jet service offered by competitors. The changeover, including the decision to terminate the leases on its seven remaining CRJ200 aircraft operated by Chautauqua, also will support the Company’s ongoing program to simplify and optimize its fleet resources across its entire network, improving aircraft utilization and cost efficiencies company-wide. Republic expects operations at Lynx to be phased out by mid-September.
Service will continue to all current Lynx destinations with the exception of Fargo, N.D. and Tulsa, Okla., where the Company will cease operations on April 5.
These changes will result in the reduction in April of approximately 175 positions at Lynx, including flight crews, operations, customer service and support personnel. Most employees affected by this announcement will have the opportunity to continue with either Republic or Frontier in similar capacities. Employees who choose not to accept a position within the Company and who work through their release date will be provided severance.
“Lynx employees have done an outstanding job of providing service to a number of regional communities and have provided important passenger connections to Frontier’s network,” said Republic Executive Vice President and Chief Operating Officer Wayne Heller. “Unfortunately, after extensive analysis and months of efforts to grow the business, we concluded we could not efficiently operate a fleet of 11 Q400 aircraft. Converting service from the Q400 fleet to jet service allows us to better utilize our existing aircraft resources and lower our cost of operating and maintaining multiple fleet types, while providing our customers with outstanding jet service.”
Heller concluded, “These changes will better position the Company to sustain the kind of growth we’ve already begun and that our employees and customers expect as we continue our work to rebuild and expand the Frontier and Midwest networks.”
Anybody got any details? I hope there will only be a transfer of positions, not a job loss.
Hometown airline my azz. It's a brave new world at Republic.