Republic Airways Holdings, Inc. (RAH) is the holding company that owns RA, Chautauqua, Shuttle, Frontier, Lynx, and the former Midwest and operates both “fixed fee” and “branded” operations. Each subsidiary carrier has its own operating certificate; however, RAH is in the process of transferring Lynx’s remaining fleet to the RA operating certificate. This is anticipated to be completed by early 2011, at which time RAH will surrender Lynx’s operating certificate and shut down Lynx.

Management is integrated, and all labor relations and personnel functions for the Carriers are administered by RAH under the stewardship of Ron Henson, VP, Labor Relations. RAH stated that the single carrier that currently is comprised of Chautauqua, Shuttle, and RA will continue to exist in its current form and will be held out to the public and marketed under the brand of the applicable flying partners or the Frontier brand. Frontier (and Lynx until its closing) will continue to be held out to the public and marketed under the Frontier brand.

On November 3, 2009, RAH (on behalf of itself and its wholly-owned subsidiaries, Chautauqua, Shuttle, RA, Midwest, Frontier and Lynx) entered into an agreement with its Pilots’ representatives to integrate the Pilots’ seniority. An arbitration to integrate the list occurred, with hearings and submission of briefs. A proposed award was issued on November 5, 2010, and a final award was issued February 19, 20112
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IBT
The IBT urges the Board to find that the Carriers are operating as a single transportation system for purposes of representation of the craft or class of Pilots. All subsidiaries are wholly owned by RAH, including Frontier and Lynx whose acquisition was finalized October 1, 2009.

According to IBT, the entities are operating as a single transportation system as evidenced by substantial operational integration, common control and ownership, and overlapping senior management and labor relations at each subsidiary. The IBT also contends that Midwest has ceased operations and is not part of the single transportation system. Pilot recruiting for each of its subsidiaries is handled by RAH. In addition, IBT contends that further evidence of single carrier status is the fact that all the Pilots of the various subsidiaries have been integrated into a single seniority list. Arbitrator Dana E. Eischen issued his final award on February 19, 2011.

In IBT’s estimation, “[RAH] holds out to the public that its operating carriers are part of a consolidated entity.” While each of RAH’s subsidiaries is a separate corporate entity with its own FAA operating certificate, their operations are all consolidated and commonly-scheduled under the Frontier brand, and they are held out as single company of affiliates on RAH’s website. Further, the subsidiaries are presented on a consolidated basis for both financial reporting and operating performance.

IBT notes that both ALPA and UTU agree that Frontier is appropriately included in the single transportation system. Further, the IBT rejects FAPA’s main contention that the diverse operations of Chautauqua/RA/Shuttle (fixed-fee) and Frontier (branded) make a single system finding inappropriate. In support of its position, IBT cites to a number of previous Board determinations where the Board has found mainline and regional carriers part of a single transportation system. Continental Airlines/Continental Express, 20 NMB 326 (1993).

Finally, the IBT contends that there have been significant steps towards the integration of Frontier into the single transportation system since the Board’s March 2010 decision regarding the Flight Attendants. Chautauqua Airlines, 37 NMB 148 (2010). Examples of this integration include further consolidation of administrative, operational, and labor functions of Frontier into RAH at its Indianapolis, Indiana headquarters; consolidation of the Frontier employees under RAH’s handbooks and policies; Frontier’s website links prospective employees to the RAH website to search for open positions; and finally, there has been a combination of the branded operations by the various affiliates into the Frontier brand, which has resulted in RA and Chautauqua aircraft being painted in Frontier livery, and the flying of RA and Chautauqua planes as Frontier branded operations.

ALPA contends that all of RAH’s subsidiaries are a single transportation system for the craft or class of Pilots, but also argues that the Midwest Pilots are part of the single transportation system. ALPA argues that it is a well-settled principle that only the Board may cancel a representation certification and that in situations in which carriers are acquired “existing certifications remain in effect until the Board issues a new certification or dismissal.” See NMB Representation Manual Section 19.7. While ALPA acknowledges that RAH has recently stopped selling services under the Midwest brand, it contends that RAH will continue to fly aircraft with Midwest livery through early 2011.

ALPA states that in the time frame since the Board’s findings in Chautauqua Airlines, 37 NMB 148 (2010), RAH has begun to integrate its Midwest and Frontier brands operationally, and is using both MWA (Republic d/b/a Midwest Airlines) and Frontier mainline planes, equipment only used in branded operations, to provide that integrated service. ALPA writes that while Midwest may have surrendered its FAA operating certificate, “it still continues to exist as a corporation, owning assets used in airline operations, such as gates, slots, reservations structure and maintenance facilities [and] … its airline operations are being integrated with and into the Frontier brand, comprising around 24% of Frontier’s operations today.” As Midwest’s operations have been integrated with and into the Frontier brand, ALPA contends that the Midwest Pilots have an interest that the Board’s merger policies protect.

This ongoing integration of operations has now integrated Frontier/Lynx into the single transportation system, so that the system today includes the Carriers “plus Midwest.” ALPA believes that the intertwined nature of RAH’s two types of operations make the finding of a single transportation system the only result consistent with the RLA’s representation structure.

Chautauqua Transfers Last 170

By: Gregory Polek

Aviation International News >> November 2005
Air Transport and Cargo Aircraft

Indianapolis-based Chautauqua Airlines has transferred the last of its once 23-strong fleet of Embraer 170 jets to its sister carrier, Shuttle America. The move relieves parent company Republic Airways of penalties it has had to pay American Airlines for scope-clause violations.

The contract signed by American and its pilots prohibits any American Connection carrier from flying jets that hold more than 50 seats for any partner. Chautauqua, which flies Embraer ERJ140s as American Connection, had flown the 70-seat Embraer 170s for Republic since the airplane’s introduction in April last year.