Trans World Airlines (TWA) has agreed a marketing tie-up with Chautauqua Airlines to launch its first regional jet services. The deal involves Chautauqua parent Wexford Management committing to orders and options for up to a further 60 Embraer RJ-145s.
The 10-year agreement calls for Chautauqua to launch the first TWA Express jet service from the international carrier's main hub in St Louis next July, and from New York Kennedy. The new carrier will initially be limited to 15 jets under a recently ratified scope clause agreement with the carrier's pilots and machinists.
According to Chautauqua chief executive Bryan Bedford, 15 additional ERJ-145LRs will be ordered for the TWA operation through conversions of existing options held by Wexford, and 45 new options will be placed. Seven ERJs will be delivered next year and eight in 2001.
There is provision to double the size of the regional jet service to 30 aircraft in 2001-2, but this hinges on growth in the mainline fleet. Under TWA's scope clause agreement, once its fleet has reached 200 units one more 50-seat jet can be added for every two new larger aircraft, up to a total of 230. The airline says it has begun talks with the Airline Pilots Association to raise this number.
TWA operates 185 aircraft and is due to take delivery of 39 new ones by the end of this year, with 125 more Airbus A320 family aircraft and Boeing 717s on order, and 125 options. But net growth has been constrained by the retirement of older Boeing 727s and McDonnell Douglas DC-9s.
The jet deal with Chautauqua is not exclusive and TWA director of regional airlines Marc Spiegel adds that the company "continues to have exploratory discussions with Trans States Airlines". The carrier operates 130 turboprop services for TWA from St Louis and New York and has ordered ERJ-145s for its Delta Connection services.
The TWA tie-up reduces Chautauqua's overwhelming dependence on its partner, US Airways, and strengthens its negotiating position for a better deal. "This puts Bedford in a tremendous position," says one observer.
Source: Flight International
