By Mary Kirby in Philadelphia
Chautauqua Airlines is seeking Bombardier CRJ200s to potentially fulfill its new feeder deal with Continental Airlines, in a move that would require the regional operator to add a new aircraft type to its existing certificate.
“As part of the discussion at the board level considering the Continental agreement, we certainly have had to wrap our arms around the concept that we may be adding a second fleet type to the Chautauqua certificate,” said Bryan Bedford, chief executive of Chautauqua parent Republic Airways today during an earnings conference call to discuss the company’s $20.3 million second quarter net income.
He adds: “We are looking in the marketplace today for both [Embraer ERJ-]145 and CRJ aircraft…and we are certainly not closing the door on any opportunities to source aircraft competitively today.”
Chautauqua - an all-ERJ operator - recently signed a deal with Continental to operate 44 50-seat jets to cover capacity lost from the US major’s new fleet agreement with primary regional partner ExpressJet. A total of 20 ERJ-145s will be culled from Chautauqua’s contract with US Airways, and transferred to the Continental system.
This arrangement is facilitating an amended feeder deal with US Airways that will see Chautauqua sister Republic Airlines acquire and operate 30 Embraer 175s under the US Airways Express banner; Republic already flies Embraer 170s for the Phoenix-based major.
To meet the remaining 24-aircraft requirement in the Continental deal, Chautauqua is “sourcing 50-seat aircraft from the third party, used marketplace”, says Bedford, adding that these will be obtained on short-term leases.
Republic Airways’ chief executive says management in the last two weeks has identified about 50 regional jets that will “meet our needs to fulfill the 24” aircraft, but that “doesn’t take into consideration the 69 [ERJ-]145s that have moved on Continental’s property that we’re not quite sure where they are going”.
He notes that the objective in meeting the Continental agreement “is to source 50-seat jets in as flexible terms as the market allows”, to find aircraft in 24 to 60 month terms, and provide Continental with “extension options”.
Source: Flight International
