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From: Light Chop

On October 4, 2010, the IBT filed an application alleging a representation dispute involving the craft or class of Pilots.

Are RA, Shuttle, Chautauqua, Frontier, Lynx, and the former Midwest operating as a single transportation system? If so, what are the representation consequences?

The Board finds a single transportation system only when there is substantial integration of operations, financial control, and labor and personnel functions. Further, the Board has noted that a substantial degree of overlapping ownership, senior management, and Boards of Directors is critical to finding a single transportation system.

(as to RAH):

• All subsidiaries are wholly owned by RAH, but each holds its own FAA operating certificate.
• Management between the Carriers has already been integrated.
• The same Board of Directors and senior management team oversee all of the Carriers. For example, Bryan Bedford is the Chairman and CEO for all of the Carriers. He is also the President of RA, Shuttle, Chautauqua, and Frontier.
• ...labor relations are often indicia of single transportation systems. See Atlas Air, Inc./Polar Air Cargo Worldwide, Inc., 35 NMB 259, 269 (2008) (single system found in spite of separate operating certificates due in part to substantial overlap among Boards of Directors and senior managers).
• There has been significant progress towards an operational merger for the craft or class of Pilots. RAH, on behalf of its subsidiaries Chautauqua, Shuttle, RA, Midwest, Frontier and Lynx, entered into an agreement with its Pilots’ representatives on November 3, 2009 to integrate the Pilots’ seniority.
• RAH exercises control over the management, labor relations, and human resources functions of all of its subsidiaries including Pilot recruitment.
• Further, RAH holds out to the public that the Carriers are part of a consolidated entity as shown at its website, Republic Airways.
• While RAH’s business model is one that includes both “fixed-fee” and “branded” operations, its operations are consolidated and “branded” operations are commonly-scheduled under the Frontier brand.
  • For example, the route map available at Frontier and RAH’s websites provides that: “Flights are operated by Frontier, Lynx, Republic Airways, or Chautauqua Airlines.” In addition, RAH’s subsidiaries are presented on a consolidated basis for both financial reporting and operating performance. See Quarterly Financial Statement, August 9, 2010; September 2010 Press Release “Republic Airways Reports September 2010 Traffic."
• The subsidiaries are held out as one carrier on RAH’s website, and the employees are subject to the same operational policies and most labor relations policies (subject to differences until all employee crafts or classes are subject to the same CBAs).
• Prospective Chautauqua, RA, Shuttle, Frontier, and Lynx employees all apply to jobs through one universal forum, at RJET.com. While prospective employees can go to Frontier’s website, if they want to explore employment opportunities they are re-directed to RAH’s central job listing page.

In Flagship Airlines, Inc., 22 NMB 331 (1995), a case with facts very similar to those present here, the Board found a single transportation system to exist primarily because of the significant degree of “common control” exercised by Eagle over its subsidiaries. Id. at 426. Eagle wholly-owned and centrally controlled the four subsidiaries; there existed interlocking boards of directors, common corporate officers, and common management; the carriers held themselves out to the public as a single carrier, and flight schedules and reservations were integrated; and while most employee groups were represented by separate organizations/CBAs, Eagle handled most other labor relations issues for the carriers. Id. at 426-30.
See also USAir, Inc. and Shuttle, Inc. d/b/a USAir Shuttle, 19 NMB 388 (1992) (single transportation system found where USAir did not own Shuttle but had a five year contract which gave extensive operational control over carriers management, labor relations, and marketing. There was no common Board or officers, but Shuttle’s officers consulted with USAir on all management decisions. Flight crews were not integrated).

There are a number of prior Board determinations finding a single transportation system in the absence of a single FAA operating certificate. In Atlas Air, Inc. and Polar Air Cargo Worldwide, Inc., 35 NMB 259, 269 (2008), the Board found a single transportation system even though the carriers had separate operating certificates and separate crews. Atlas and Polar did not combine their routes or schedules; and the carriers’ equipment did not have conformed markings, uniform insignia, or logos. Id. at 267.
However, there was substantial overlap among the carrier’s boards of directors, labor relations and operations were centralized, employees were cross-utilized, and there were plans in place for an integrated seniority list and CBA. Id. at 269. See also Continental Airlines/Continental Express, 20 NMB 326 (1993) (Board found a single system as a result of common control, common ownership, shared common officers, centralized management and labor relations; in spite of the fact the carriers had separate FAA operating certificates); Midway Airlines, Inc., 14 NMB 447 (1987) (two carriers which existed as separate corporate entities and operated under separate FAA operating certificates were nevertheless, based on their combined operations, found to be a single transportation system).

The Board finds that RAH exercises sufficient common control over its subsidiaries, Chautauqua, Shuttle, RA, Frontier, and Lynx to form a single transportation system for representation purposes.

Following the multi-step transaction that integrated the former Midwest into Frontier and RA, the Carriers all operate with individual operating certificates; however the other factors support a single system finding. Upon the effective date under the arbitrator’s award, all Pilots will be working under one seniority list. Management and Boards of Directors are overlapping, and RAH has total operational control over its subsidiaries’ operations. Further, Chautauqua, Shuttle, RA, Frontier, and Lynx are held out as a single carrier of affiliates on RAH’s website and presented on a consolidated basis for both financial reporting and operational performance.

Based upon the application of the principles cited above to the facts established by the investigation, the Board finds that the Carriers are operating as a single transportation system (Republic Airlines et al./Frontier) for the craft or class of Pilots.

The Board finds that Chautauqua, Shuttle, RA, Frontier, and Lynx are operating as a single transportation system (Republic Airlines et al./Frontier) for the craft or class of Pilots for representation purposes under the RLA.

Am I crazy or does it just seem someone needs to apply to the NMB with the question: is Chautauqua, Shuttle, RA, Frontier and Lynx operating as a single transportation system. < period. ?

ALPA already was a part of this saying that Midwest needed to be included in the STS. But now when it comes to scope, oh no, totally different. That mutli-certificate thing works really well Mr. Keyboard Worrier.

I honestly want to hear what ALPA is going to say, but really, if 12,000 Delta pilots want DCI ended then Delta Air Line Pilots Association stance should be- end it.

If we see the warning signs of what RAH is up to as a precursor to others following suit as ma Delta attempts to change CPA's to higher risk contracts for the DCI's, then by all means, I want our union to apply to the NMB to find RAH an STS and have them kicked out of DCI.