ECC Leasing, a wholly owned subsidiary of Embraer, has leased four used ERJ135s to South African Airlink to replace some of the airline’s oldest Jetstream 41 turboprops in time for the 2010 FIFA World Cup soccer tournament.
Republic Airways Holdings
The sudden collapse in August of fractional ownership startup Jet Republic probably convinced anyone in Europe who still failed to accept that business aviation’s bubble had burst.
Former employees of Jet Republic complain of being betrayed and misled in the sudden collapse of the European would-be fractional ownership company. Speaking to AIN on condition of anonymity, the staff has claimed that the company breached its contractual obligations by failing to give formal notification that they were being laid off, so preventing them from claiming unemployment benefits in their countries.
SkyWest Airlines’ decision to lend United Airlines $80 million in no way signals any particular interest on the part of the St. George, Utah-based regional to help finance the operations of its code-share partners, a point SkyWest executive vice president and CFO Brad Rich clearly wanted to emphasize during the company’s third-quarter earnings conference call last month.
Now that his company has joined the ranks of the major airlines with its takeover of Frontier and Midwest Airlines, an admission by Republic Airways CEO Bryan Bedford of a “jaundiced view” of the small regional jet market might not come as a surprise.
Republic Airways plans to ground the last of nine remaining Boeing 717s it acquired with its purchase of Milwaukee-based Midwest Airlines by November 3 and replace them with Embraer E190s flown by “non-legacy” pilots. At press time Midwest’s ALPA-represented pilots and the Teamsters-represented pilots at Republic failed to reach a deal to merge their seniority lists, leaving the last 68 Midwest pilots out of work.
Republic Airways today said it will acquire 10 Embraer 190ARs from US Airways. The airline will apply the full balance of a $35 million loan from US Airways toward the purchase of the aircraft and assume the remaining debt on the aircraft. Republic expects four of the 99-seat jets to enter service in November and December in the company’s new Midwest Airlines system, where they would replace Boeing 717s.
The cream has risen to the top and has not gone sour is how Comlux would characterize today’s charter market, which is to say that demand for high-end, airliner-class aircraft has held up well in relation to the marked downturn still being suffered by operators of smaller jets. This explains why the Swiss-based group has come to Orlando (Booth No.
Mesa Air Group will take a controlling stake in Republic Airways subsidiary Mokulele Airlines under the terms of a deal signed yesterday that will see three Republic/Shuttle America Embraer E170s exit the Mokulele fleet next month in favor of Bombardier CRJs flown by Mesa’s Hawaiian subsidiary, Go!. Under the terms of the contract, Mesa will take a 75-percent interest in the joint venture and Republic a 25-percent share.
Eighteen months ago, the business aviation industry was happily floating in a sea of black ink. Now, a year-and-a-half later, it’s drowning in red ink. And it’s debatable whether the end of the economic recession is in sight or whether it’s a good idea to hang onto the life preservers just a little longer.