Centerlines - April 2008 - (Page 16) ONE ON ONE A TALE OF TWO REGIONALS Bryan Bedford of Republic Airways Holdings and Joe Randell of Air Canada Jazz merger, the mainline carriers cannot simply walk away from their regional code-shares as they did during the bankruptcy proceedings earlier this decade. It is important to note that few regional carriers now select their own routes or service cities. The mainline carrier handles route planning and ticket sales. However, in most United States and Canadian airports the regional carrier is the face of the mainline. In the U.S., 70 percent of all cities with commercial air service are exclusively served by small jets or turboprops. A Boeing or Airbus just isn’t in the cards for these markets. With the continued importance of regional aviation, Centerlines recently asked two dominant regional airlines to discuss their future growth plans. Republic Airways Holdings, which flies for more mainline carriers than any other regional, has been growing both its fleet and the number of communities it serves. It was recently named the 2008 Regional Airline of the Year by Air Transport World magazine. On the other side of the border, while Air Canada Jazz currently flies for just one network carrier, the airline has led the industry in many innovations, including their charter business and labor agreements. R egional airlines are carrying an ever-increasing share of the North American flying public. And, the situation ahead—higher fuel prices and airline mergers—won’t change the picture. The rocketing cost of jet fuel has put pressure on the 37- and 50-seat regional jets. While the mainline carriers have continued to shift domestic routes to their regional partners, they now want the regional airlines to fly larger regional jets—those capable of carrying more than 70 passengers. Many of these feature a first-class cabin to accommodate high-yield business travelers and frequent flyers. In the world of airline mergers, the regional carriers are protected by “fee per departure” contracts. If a new Delta-Northwest combination wants to combine regional routes, negotite t then it will need to n e the Delta ate with th 11 De he Connection and Connection Northwest Airlink Northwe t Airli k N th est Ai link carriers. In a c Republic Airways Holdings’ Bryan Bedford Indianapolis-based Republic Airways is one the nation’s largest regional airlines and by far the most diversified. The company has three airlines—Chautauqua Airlines, Republic Airlines and Shuttle America —and its serves six mainline carriers: American Airlines, Continental Airlines, Delta Airlines, US Airways, United Airlines and Frontier Airlines. Republic’s fleet of 220 regional jets flies more than 1,250 daily flights serving 119 cities in the U.S., Canada, Mexico, Jamaica and the Bahamas. Republic’s diversified assets also include 113 landing slots at Washington Reagan National Airport and 24 at New York’s LaGuardia Airport that it purchased from US Airways during that carrier’s second bankruptcy. Republic has been renting these slots back to US Airways. Chief Executive Officer Bryan Bedford joined Chautauqua in 1999 after a four-year stint leading Mesaba Holdings. During his tenure, the Republic Airways holding company was formed. Bedford also oversaw the establishment of a new regional carrier, Republic Airlines, and the acquisition of Shuttle America. Republic is a hired gun for its partners. The mainline carriers determine which routes are to be flown and then select the regional partner with the available aircraft best suited for the task. Joe Randell of Air Canada Jazz (left) and Bryan Bedford of Republic Airways Holdings 16 CENTERLINES | APRIL 2008
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