Republic and SkyWest move aggressively to avert the fate of their fellow US regional carriers

The two remaining largest US regional airline groups Republic Airways Holdings and SkyWest are working furiously to maintain a reversal of fortunes in order to avoid the fate of their peers American Eagle, Comair and Pinnacle. Eagle and Pinnacle are attempting to formally restructure through Chapter 11 while Comair parent Delta has opted to shutter the carrier in Sep-2012. As both Republic and SkyWest work to whittle down their cost structures to remain competitive, the companies are also looking for ways to make the remaining undesirable 50-seat jets in their fleets viable platforms for their partners - an unenviable but essential undertaking each carrier must complete successfully in order to remain relevant in the changing US regional paradigm.

Both Republic and SkyWest faced significant challenges in 2011. Republic began cost overhaul at its branded subsidiary while SkyWest recorded some of the most disappointing financial results in the company's history, posting a loss of USD27.3 million - its first annual loss in 23 years. The US regional industry did not adapt quickly enough to the changing business landscape ushered in by the major consolidation of US legacy carriers during the last decade.