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Republic works to restructure loss-making 50-seat operations at its subsidiary Chautauqua

Analysis

Republic Airways Holdings has undertaken a restructuring of its Chautauqua Airlines subsidiary that operates 50-seat regional jets with a targeted USD40-60 million improvement by 2013. The company is hoping to overcome the daunting challenge facing all US regional airlines of finding a price point that makes the operation of smaller jets consistently profitable.

During the late 1990s and early 2000s the introduction of the 50-seat regional jet ushered in heady times for US regional carriers as they negotiated high margin capacity purchase agreements with their US legacy partners that allowed for strong profits that often times bested the financial performance of the network carriers they were partners with.

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