A federal arbitrator’s ruling to award the Allied Pilots Association $23.2 million for American Airlines’ scope-clause violations appears to have achieved its desired effect.
Republic Airways Holdings
Mesa Air Group will fly another 14 Bombardier CRJ900s as Delta Connection starting in September under the terms of a contract amendment that also calls for Mesa to immediately add six 50-seat ERJ 145s, then to remove eight of its original 30 ERJ 145s from August to October 2008. Delta also granted Mesa a $31 million claim in its bankruptcy case.
Hans Doll was promoted to director of customer and product support for Grob Aerospace. He was previously head of sales for Grob training aircraft. Denzil White was named director of international sales for the Grob training fleet as well as director of special mission aircraft.
Executive Jet Management has reorganized its management staff with the following appointments: Robert Mayo, formerly senior v-p for client transition, was promoted to senior v-p of operations; Glenna Edwards, formerly a vice president for client relations, was named v-p of owner standards; and Larry Lee, formerly director of the company’s shuttle operation, was named assistant director of operations.
Air Canada again added to Embraer’s backlog of 170/190-series jets last month with a firm order for 15 Embraer 175s. The order brings to 60 the number of airplanes Air Canada has ordered from the Brazilian manufacturer and chief competitor of Canada’s Bombardier.
Hopes for a first-quarter launch of US Airways’ MidAtlantic division dimmed to a flicker last month as pilots continued their dispute over payscales for new Embraer 170 positions and management took steps to sell off assets to meet minimum federal loan requirements.
It had been a somewhat quiet year since the RAA staged its annual convention in St. Louis last May. Seemingly immune to the ills that have crippled their mainline counterparts for the past four years, the regional airlines finished last year with close to 30-percent traffic gains and average yields of 10 percent, leaving many wondering how long the major airlines would allow such an imbalance to continue.
Republic Airways became the second regional airline to claim a stake in US Airways last month when it inked a conditional deal to commit $125 million in equity and up to $110 million in asset-related financing.
A bankruptcy court judge has approved a deal between Air Wisconsin and US Airways that will see the Appleton, Wis.-based regional take an equity stake in the bankrupt major airline and fly up to 70 regional jets as US Airways Express. The arrangement centers on a $125 million loan from Air Wisconsin’s investment arm, Eastshore Aviation, that will convert to equity after US Airways’ planned emergence from bankruptcy this summer.
US Airways expects to launch Embraer E190 service from Philadelphia this month, marking the first application of the Brazilian narrowbody in mainline service in the U.S. Plans call for the dual-class, 99-seat jets to link Philadelphia with Hartford, Conn.; Boston; Dallas; Providence, R.I.; and Manchester, N.H.