Continental Airlines last month accepted a bid from Indianapolis-based Chautauqua Airlines to fly at least 69 regional jets slated for withdrawal from its capacity purchase agreement with long-time Continental Express partner ExpressJet. Continental plans to start the transition in January and finish by the end of next summer.
While at first it seemed hard to reconcile the rather dark and anxious mood of last year’s RAA Convention in Cincinnati with double-digit profit margins and record revenues, by the end of the three-day event it became clear to everyone what regional airline executives had seen coming for years.
Larger aircraft and lower costs have produced a winning formula for Swiss International Airlines’ regional operations–despite high fuel prices not entirely offset by surtaxes on tickets. Swiss announced an overall profit of SFr76 million ($61 million) for the first half of the year and stresses that regional, European and intercontinental flights have all contributed to the positive result.
Republic Airways late last month exercised purchase options on 30 Embraer E175s, bringing the total number of E-Jets ordered by the Indianapolis-based regional airline to 78. Republic, which took the options from US Airways, will fly the airplanes in an 86-seat cabin layout in US Airways Express livery starting next year. The parties expect deliveries to continue through 2008.