DOT Gives Shuttle America the Flexibility to Fly Solo
Shuttle America received U.S. Transportation Dept. approval to offer service independent of its fee-for-service arrangements with U.S. airlines, giving the Republic Airways Holdings subsidiary the freedom to go that route although it has no immediate plans to do so (DAILY, Dec. 18th).
In approving the request March 23, the DOT said Shuttle America told the department it had "no immediate plans" to start a self-branded service but wanted "the flexibility to respond quickly to new marketplace opportunities." Shuttle America's request was essentially identical to a request made by Republic Airways subsidiary Republic Airlines; the DOT approved that request in November 2007, but Republic still offers services solely through contracts with U.S. carriers, flying as US Airways Express and Midwest Connect.
Shuttle America currently operates 37 Embraer E-170 and 13 E-175 aircraft under fee-for-service arrangements, flying as United Express, Delta Connection and Mokulele.
The DOT said it approved Shuttle America's request because "the record indicates that Republic Airways Holdings has substantial financial resources to support [Shuttle America] in conducting independent operations." Under the conditions of that approval, if
Shuttle America does decide to conduct independent operations, it must notify the DOT at least 45 days before starting the service.
Any consideration of independent service, however, might be tempered by the memory of Atlantic Coast Airlines' ill-fated attempt to reinvent itself as an independent low-cost carrier called Independence Air.
-Andrew Compart,
andrew_compart@aviationweek.com
