Paul Lewis/WASHINGTON DC

Chautauqua Airlines has struck a 10-year deal to provide a regional feed for America West Airlines as a hedge against continuing uncertainty about the carrier's future with Trans World Express after the latter is taken over by American Airlines.

Indianapolis-based Chautauqua replaces Mesa Airlines as America West's regional feed into Columbus, Ohio, from August with an initial four newly delivered Embraer ERJ-145s.

The revenue-sharing-based deal calls for the Chautauqua operation to expand to 12 ERJ-145s by next year, with an option to add a further 12 50-seat jets.

Chautauqua is simultaneously negotiating with American to continue serving TWA's main St Louis hub beyond 31 December. "One aspect of the America West deal is if things do not work out with American, we can move our jets to Columbus," says Chautauqua chief executive Bryan Bedford.

Eight ERJ-145s are operated on behalf of TW Express and this arrangement had been due to expand to 20 aircraft under a 10-year deal struck in November 1999. American has since amended the contract to terminate it from the end of this year unless a fresh agreement can be reached with Chautauqua.

The situation is complicated by American's own scope clause agreement with its pilots, which, in the absence of a new contract, limits the carrier to 67 regional jets of 45-seats and larger.

This is fully accounted for by American Eagle's own fleet of ERJ-145s and planned Bombardier CRJ700s.

To overcome this, American Eagle has ordered additional shortened 44-seat ERJ-140s. "We have conversion rights to theERJ-140s and will do something depending on the outcome of the American talks," says Bedford.

Chautauqua has ordered a total of 45 ERJ-145s including 26 for its US Airways Express operation.

Source: Flight International