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With 2 deals, Republic Airways grows into big airline - USATODAY.com

FlyASA

A pretty decent article for the media. Can UA, DL, US, UA, or AA cancel RAH contracts once they start flying the Airbus and bigger E-190s? That has to violate some portion of those contracts. I would think they would be smart enough to put some non-compete clause in the contracts or something. If not, then congrats to the legacies, they just funded their own demise by creating the Walmart of the skies. Even though RAH is new to running an actual airline their labor cost structure is going to be so much lower than their LCC and Legacy competitors. Such a huge competitive advantage will allow them to make all sorts of mistakes and still remain solvent and profitable. It would take a concentrated effort by all the LCCs and Legacies to smother this infant in it's crib. That kind of cooperation wouldn't be legal and they might not be able to or even want to. They could simply use this to beat more concessions out of their own labor groups.

A huge gamble by BB and RAH management, it'll be interesting to see if it works and how this affects the rest of us.

exwaterski

I've mostly refrained from commenting on this so far because I hate all the Republic bashing but IMO Bedford is going to run that company into the ground. This has Independence/Xpressjet written all over it. And since I firmly believe the Teamsters will never be willing to do what it takes (ie. prolonged strike) to secure minimum Jet Blue rates for the E190 I say let it burn. If they can get a pay rate for the E190 that is on par with Airways and Jet Blue for Captains AND FO's I will gladly eat those words, but I doubt it. They might get close on the captain's rate but no E145 captain is going to vote for a junior E190 FO to make more money than them it's just not going to happen especially if they can't bid on it themselves. The inherent conflict of interest between the large and small jet pilots are going to wind up splitting the pilot group and dragging negotiations down. Mark my words.

texaspilot76

I read that article this morning. I will quote one passage from there:

"All nine of Midwest's Boeing 717s will be replaced by Republic's more economical Embraer E-190s, manned by lower-paid Republic crews to generate substantial operating cost savings."

My heart goes out to Midwest pilots and their families. The evil Republic empire has left you out to dry. Unfortunately, the Republic pilots are foaming at the mouth. Your fellow ALPA pilots stand beside you and will do what we can to assist.

DLAJ77

RAH is digging there own grave!! Citrus and Soutwest will destroy them.

aewanabe

My heart also goes out to all Midwest employees and families. Rumors of a little hiring here at Blue later this year, hope it comes through and we can get some more of you off the streets.

In the meantime, TP and others, prove a single Republic Pilot is foaming, or stow it. All the RP pilots I know are worried about the direction Bedford is taking the company and want nothing more than to succeed in the current section 6. In the meantime, just keep running around flying your tundra jet on routes that used to have DC9s and 737s on them and tell yourself you're not part of the problem since the engines aren't on the wings.....

What are you fellow ALPA pilots doing, exactly, other than yelling like children on a message board? Have you started a benevolent fund, donated your own money, suggested to your MEC that the YX guys should get pref-hiring into your Captains' seats? Didn't think so.

ToiletDuck

RAH doesn't fly airplanes. No violation of contracts.

KiloAlpha

WHEN (yes when, not if) United and/or Airways go into bankruptcy RAH will be in a better position than had they not made these purchases. Also remember Southwest is not invincible.. Frontier is actually doing better than SWA in Denver; higher load factors and lower CASM. Because of many factors, yes crew pay being a very small overall factor, RAH WILL likely be able to compete on a cost basis; crew::airplane ratio, huge economies of scale with the E-Jets, et cetera.

Life and Capitalism are a *****. Here in the US you are not entitled to anything outside your inalienable rights endowed by your Creator. You are given an equal opportunity and that does not mean you are entitled to equal results.

Side thought:
UA or LCC may be "too big to fail" so who knows... why not prop up a company that will likely never succeed

rickair7777

Here's a scenario...BB rolls Frontier and Midwest into one virtual airline, staffed by RAH pilots flying regional rates.

In late 2010, UAL liquidates...SKW is already doing UAX feed to SFO, LAX, DEN, and ORD, so St. George picks up some IAD gates at auction plus a few airbii for transcons. They could buy the UAL name or just operate as SKW.

Now you have not one, but two ULCCs (Ultra Low Cost Carriers)...

I'm not so certain that it would not work, and SWA would be spread pretty thin trying to take out two such airlines.

Hopefully the Guvmint will bail out UAL when the time comes.

ToiletDuck

They aren't virtual airlines if they are owned and operated by RAH. AMR, DAL, UAL, are all airlines owned by a larger corp. As of right now he doesn't want Frontier to have anything to do with the RAH group.