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OST-2003-14579 |
http://www.republicairlines.com/
Republic Airline Inc. d/b/a Republic Airlines
| OST-2003-14579 - Certificate of Public Convenience and Necessity - Interstate Scheduled Passenger | February 24, 2003 | Application for a Certificate of Public Convenience and Necessity | Certificate of Public Convenience and Necessity to Engage in Interstate Transportation of Persons, Property and Mail |
| Motion for Confidential Treatment | |||
| Exhibit 1 - Name, Address, and Telephone Number | |||
| Exhibit 2 - Sworn Affidavit Confirming Citizenship | |||
| Exhibit 3 - Organizational Chart/ Summary Information/ Fitness Questionnaires | |||
| Exhibit 4 - Major Shareholders | |||
| Exhibit 5 - List of Subsidiaries | |||
| Exhibit 6 - Shares of Stock in Any Other Carrier | |||
| Exhibit 7 - Balance Sheets and Income Statements | |||
| Exhibit 8 - All Outstanding Actions for more than $5,000 | |||
| Exhibit 9 - Aircraft Fleet | |||
| Exhibit 10 - Compliance History | |||
| Exhibit 11 - Description of Charges of Unfair Practices With the Last 10 Years | |||
| Exhibit 12 - Description of Any Accidents | |||
| Exhibit 13 - Narrative History | |||
| Exhibit 14 - Federal, State and Foreign Authority | |||
| Exhibits 15 & 16 - Financial Information | |||
| Exhibit 17 - Signed Counterpart of Agreement | |||
| Exhibit 18 - Certification |
Republic plans to commence scheduled air transportation service using the trade name "US Airways Express" on July 9, 2003, providing commuter feeder services with fifty seat, Embraer EMB-145 regional jet aircraft for US Airways, Inc., pursuant to a Regional Jet Service Agreement between US Airways and Republic dated December 18, 2002. During the first twelve months of operations Republic plans to operate a fleet of twenty (20) aircraft. Republic has agreed to participate in US Airways' "Jets for Jobs" program under which Republic will hire a significant number of furloughed US Airways pilots.
RAH also owns and controls 100% of Chautauqua Airlines, Inc., a commuter air carrier which the Department has previously determined to be a U.S. citizen and to be fit, willing and able to operate scheduled air transportation. Chautauqua has a 30 year history of providing regional airline service to small and medium size cities throughout the country. Chautauqua currently operates a fleet of 62 Embraer regional jet aircraft, providing services in partnerships with American Airlines, America West Airlines, Delta Air Lines, and US Airways.
Counsel: Shaw Pittman, Robert Cohn, 202-663-8060
| OST-03-14579 | March 3, 2003 | Notice of Appearance of International Brothers of Teamsters and Request for Service of Documents | Certificate of Public Convenience and Necessity - Interstate Scheduled Passenger |
Counsel: Baptiste Wilder, William Wilder, 202-223-0723
| OST-03-14579 | March 3, 2003 | Affidavits of Confidentiality for Counsel for the Teamsters Airline Division | Certificate of Public Convenience and Necessity - Interstate Scheduled Passenger |
Counsel: Baptiste Wilder, William Wilder, 202-223-0723
| OST-03-14579 | March 17, 2003 | Comments of Kenneth Moninski | Certificate of Public Convenience and Necessity - Interstate Scheduled Passenger |
I am supportive of Republic's overall efforts to obtain Certification as a scheduled air carrier, as its benefits to the domestic airline industry, US Airways, the State of Kentucky, and the public at large are undeniable. It is clear that the initiation of service by Republic will maintain convenient air service to many communities, while relieving US Airways of a substantial cost burden. I remain hopeful that the deployment of regional jets as part of its reorganization plan will allow US Airways to emerge from bankruptcy protection in the near future. In addition, the "Jets for Jobs" program negotiated by US Airways and its regional partners will provide much needed employment for hundreds of aviation professionals until they are recalled to the network carrier when economic conditions improve.
However, I am perplexed as to why Republic would call into question its intentions by treating this Application as a mere formality and request that the Department declare them fit without any scrutiny. More specifically, the Department should seek clarification on the following issues before issuing an Order to Show Cause.The Application is silent to the reason that Republic's parent company Republic Airlines Holdings, Inc. has elected to create a new entity for the operation of up to 23 regional jets. Given that Chautauqua Airlines, an RAH subsidiary company, already operates 62 of the same aircraft type, it seems illogical that a separate company and its requisite overhead costs is necessary for this purpose. The February 26 edition of the Indianapolis Star has reported that the formation of Republic is a result of the continued rejection of the "Jets for Jobs" program by the pilots of Chautauqua. I believe that is appropriate for the Department to inquire as to the justification of an existing airline or related company to seek Economic Authority for any new operation. I would remind the Department that recent questions regarding abuse of the certification process (BostonMaine Airways Corp., OST 00-7668; Potomac Air, Inc., OST 2000-8536) have been raised by other interested parties. Given the taxpayer cost required to examine and process any Application, the intent of the Applicant should be clear, and if not, should be challenged by the Department during the initial review phase.
By: Kenneth Moninski, k_moninski@hotmail.com
| OST-03-14579 | Served March 25, 2003 Filed February 24, 2003 |
Notice Providing Access to Documents | Certificate of Public Convenience and Necessity to Engage in Interstate Transportation of Persons, Property and Mail |
On February 24, 2003, Republic Airline, Inc. d/b/a Republic Airlines filed the subject application for a certificate to engage in interstate scheduled passenger operations using 50-seat Embraer EMB-145 aircraft. Certain of the information filed in support of this application was accompanied by a motion under 14 C.F.R. 302.12 (Rule 12) of our regulations requesting confidential treatment. Republic Airlines maintains that the documents for which confidential treatment is sought are proprietary, commercially sensitive, and confidential in nature and, therefore, qualify for being withheld from public disclosure.
Republic Airlines does not hold any authority at this time. It is, however, a sister company to Chautauqua Airlines, Inc., a commuter air carrier, as both companies are wholly owned subsidiaries of Republic Airways Holding, Inc. The scheduled passenger operations proposed by Republic Airlines will be conducted under the trade name “US Airways Express” pursuant to a Regional Jet Service Agreement between US Airways and Republic. On March 3, 2003, the International Brotherhood of Teamsters, Airline Division, the certified representative of the pilots of Chautauqua, filed a notice of appearance and request for service of documents, as well as affidavits of confidentiality for two members of IBT’s counsel.
By: Read C. Van de Water
| OST-03-14579 | March 27, 2003 | Reply of Republic Airlines | Certificate - Interstate Scheduled Passenger |
While Republic respects Mr. Moninski's right to submit comments in this matter, we submit that nothing contained in his letter warrants delay or disapproval of the application.
Counsel: Shaw Pittman, Robert Cohn, 202-663-8060
| OST-03-14579 | April 11, 2003 | Opposition of Airline Division, International Brotherhood of Teamsters to Application | Certificate of Public Convenience and Necessity - Interstate Scheduled Passenger, Property and Mail |
The International Brotherhood of Teamsters submits this opposition to the application of Republic Airline, Inc. for a certificate of public convenience and necessity. Because Republic has failed to demonstrate that it will possess adequate financial means to maintain operations under the certificate and because its application is not in the public interest, the application should be denied.
Republic's application, therefore, does not serve the public interest in expanded regional air operations. Rather, it presents the Department with an untested and substantially nonexistent operation, lacking employees and aircraft. In light of the fact that the expanded flying proposed for Republic can far more quickly and efficiently be placed in service at Chautauqua Airlines, an established jet service regional carrier whose financial soundness, independent of USAirways, cannot be questioned, Republic's application does not serve the public interest and should be denied.
Counsel: Baptiste & Wilder, William Wilder, 202-223-0723
| OST-03-14579 | April 16, 2003 | Reply of Republic Airlines | Certificate of Public Convenience and Necessity - Interstate Scheduled Passenger, Property and Mail |
Republic Airline, Inc. hereby responds to the "Opposition" of the International Brotherhood of Teamsters, filed on April 11, 2003. There is no merit to IBT's answer in opposition, which is (1) procedurally defective, (2) factually incorrect, and (3) legally in error. IBT has failed to raise any material issues to refute the strong fitness and public interest showings made by Republic in its application.
Republic is a well-financed new entrant carrier, with more than ample resources to meet its startup expenses and to begin operations. Republic has also shown that it can finance all anticipated first-year charter operations under the Department's zero revenue test. However, IBT erroneously urges the Department not to accept Republic's showing of fitness based on its cost-plus service agreement with US Airways. This ignores well-settled Department precedent, which is exactly on point. Republic will grow faster than traditional new entrants, and have different revenue and expense characteristics because it is operating in the service of and will be paid by a major U.S. carrier.
Counsel: Shaw Pittman, Robert Cohn, 202-663-8060
April 24, 2003
Answer in Support by the Regional Airport Authority of Louisville and Jefferson County
The Airport Authority is delighted Republic has chosen to base its new airline operation at the Louisville International Airport and urges the Department of Transportation to issue the requested certificate of public convenience and necessity without delay.
By: James DeLong, 502-368-6524
May 8, 2003
Correspondence of Congresswoman Anne Northup
By: Anne Northup
May 8, 2003
Correspondence of Congressman Ron Lewis
By: Ron Lewis
Correspondence of Senator Jim Bunning
By: Jim Bunning
May 21, 2003
The Department's letter stated that the Department's practice is not to withhold from public disclosure the financial information submitted by applicants of the type contained in Exhibit 7 and on page 1 of Exhibit 15. However, there are unique circumstances applicable in this proceeding that warrant according confidentiality to the CY 2002 Income Statement and portions of the CY 2002 Balance Sheet, in order to avoid substantial competitive harm to Republic, to RAE-I, Republic's parent company, and RAH 's subsidiary, Chautauqua Airlines.
Counsel: Shaw Pittman, Robert Cohn, 202-663-8060
May 27, 2003
Supplement No. 1 to Application
Republic Airline, Inc. d/b/a Republic Airlines hereby files this Supplement No. 1 to its Application for a certificate of public convenience and necessity under 49 U.S.C. §41102 to provide detailed information regarding the fitness and qualifications of its key management personnel. Republic has assembled a strong and experienced team to oversee the FAA certification process and Republic's operations upon receipt of the underlying DOT and FAA authorizations.
Attached hereto as a Supplement to Exhibit 3 are resumes and Fitness Questionnaires for each of the following key management personnel.
Resume of Alex Osleger
Resume of Mark Musial
Resume of Greg Dean
Resume of Rick Morgenstern
Resume of Frank Shea
Counsel: Shaw Pittman, Robert Cohn, 202-663-8060
May 9, 2003
Ruling on Confidential Treatment
Ruling of the Air Carrier Fitness Division, Office of Aviation Analysis on Motion of Republic Airlines, Inc. for Confidential Treatment of Documents, confidential treatment is being denied to all of Exhibit 7 and portions of Exhibit 15 and 16; confidential treatment will be granted to all revenue information and supporting statistics; grant confidential treatment to the portions of Exhibits 15 and 16 not specifically identified as denied; and, grants Exhibits 3, 9, and 19 under Rule 12 in their entirety.
By: Patricia Thomas
June 5, 2003
Motion for Confidential Treatment
Republic Airline Inc., d/b/a Republic Airlines hereby files this Motion, pursuant to Rule 12 of the Department's Rules of Practice (14 C.F.R. Section 302.12), to withhold from public disclosure revised Confidential Exhibit 4, which is being submitted herewith in a sealed envelope marked "Confidential Treatment Requested Pursuant to Section 302.12." This document is being filed under seal to replace the existing Confidential Exhibit 4 currently filed in the Confidential Docket in this proceeding with revised ownership information regarding the applicant.
Counsel: Shaw Pittman, Robert Cohn, 202-663-8060, robert.cohn@shawpittman.com
June 11, 2003
Supplement No. 2 to Application
Counsel: Shaw Pittman, Robert Cohn, 202-663-8060
June 3, 2003
Ex-Parte Letter to Representaitive Jerry Abramson (KY)
Ex Parte Letter to the Representative Ron Lewis
Ex-Parte Letter to Representative Jim Bunning
By: Norman Minetta
June 25, 2003
Hereby files this Supplement No. 3 to its Application for a certificate of public convenience and necessity under 49 U.S.C. §41102 to submit a copy of Republic's Preapplication Statement of Intent (FAA Form 8400-6) that was filed with the FAA on May 23, 2003.
Counsel: Shaw Pittman, Robert Cohn, 202-663-8060
June 24, 2003
By: Thomas Hanley
July 31, 2003
Supplement No. 4 to Application
Republic has been working closely with the FAA Kentucky Flight Standards District Offices and the assigned CSET Team on its Part 121 certification. Subject to obtaining the necessary DOT and FAA approvals, Republic currently anticipates that it will be in a position to launch operations on or about November 12, 2003. Consistent with this revised timeline, Republic expects to have its first EMB-145 aircraft available in October 2003 in order to complete the FAA aircraft conformity checks and proving runs. Republic expects to have up to 5 EMB-145 aircraft in its fleet by January 2004, with its full complement of 20 EMB-145 aircraft in its fleet by the end of the first full year of operations.
Counsel: Shaw Pittman, Robert cohn, 202-663-8060
June 17, 2003
Correspondence of Patricia Thomas
Letter from Patricia L. Thomas, Chief, Air Carrier Fitness Division, Office of Aviation Analysis, stating that as a result, upon reconsideration of their May 9 ruling, the Department has decided to grant Republic's request with respect to the information noted in Republic's May 21 petition for reconsideration.
By: Patricia Thomas
August 18, 2003
Correspondence from Norman Y. Mineta to James P. Hoffa
The International Brotherhood of Teamsters represents the pilots, flight attendants, and mechanics at Chautauqua. The creation of Republic Airlines directly threatens the job security of these employees since Republic Airline already has announced that its initial operating routes are those transferred from Chautauqua to Republic. This action represents the work of our members and it has become a major impediment in the resolution of the current bargaining with the Chautauqua pilot group under the Railway Labor Act (RLA).
By: Norman Mineta
Order 03-10-6
OST-03-14579 - Certificate - Interstate Scheduled Passengers
Issued and Served October 6, 2003
Order to Show Cause Proposing Issuance of Certificate Authority
The Department tentatively finds that Republic Airline, Inc. d/b/a Republic Airlines and d/b/a US Airways Express (Republic) is fit, willing, and able to provide interstate scheduled air transportation of persons, property, and mail as a certificated air carrier, using small (60 seats or fewer) aircraft, subject to limitations and conditions.
If granted the certificate authority it seeks, Republic proposes to provide scheduled air transportation from its base in Louisville using up to 23 50-seat Embraer EMB-145 aircraft on behalf of US Airways under a Regional Jet Service Agreement Republic has not provided a detailed service proposal for its scheduled operations based on specific markets. It notes that this is because US Airways has not, as yet, determined the exact routes to be operated by Republic under the agreement. Nonetheless, it states that it expects to be operating services to feed US Airways' mainline operations and that its first two aircraft will operate between Louisville and Ronald Reagan Washington National Airport (DCA) and LaGuardia (LGA). Further, Republic has stated that it intends to pursue opportunities to utilize its aircraft, independent of the RJS agreement, for occasional charter service.
By: Michael Reynolds
Order 03-11-8
OST-03-14579 - Certificate - Interstate Scheduled Passengers
Issued and Served November 14, 2003
By Order 2003‑10‑6, issued October 6, 2003, we directed all interested persons to show cause why we should not make final our tentative findings and conclusions stated in it and award a certificate of public convenience and necessity to Republic Airline, Inc. d/b/a Republic Airlines authorizing it to engage in interstate scheduled air transportation of persons, property, and mail using small (60 seats or fewer) aircraft. Interested persons were given 14 days to file objections to the order. No objections to the show‑cause order were received.
By: Michael Reynolds
March 8, 2004
Republic hereby requests authority to use large aircraft; specifically, 70-seat EMB- 170 aircraft, and supplements the record in this proceeding to provide the Department updated information regarding recent changes to Republic's proposed operations. Republic has entered into a code-share arrangement with United Air Lines, Inc. under which Republic will operate 70-seat EMB- 170 aircraft using the "United Express" code, under a "cost-plus" fee-for-service arrangement.
In connection with the service for United, Republic is moving its base of operations from Louisville, Kentucky to Indianapolis, Indiana. Indianapolis offers the potential for better synergies and passenger feed within United's system. Republic expects to launch its scheduled United Express operations in July 2004, operating service between Indianapolis and Washington Dulles International, and between Indianapolis and Chicago O'Hare. Republic plans to operate a fleet of up to 16 EMB‑170 aircraft during the first full year of service.
Counsel: Shaw Pittman, Robert Cohn, 202-663-8060
March 8, 2004
Motion for Confidential Treatment Pursuant to Rule 12
Republic Airline Inc., d/b/a Republic Airlines (Republic) hereby files this Motion, pursuant to Rule 12 of the Department’s Rules of Practice (1 4 C.F.R.Section 302.12), to withhold from public disclosure the confidential exhibits contained in Supplement No. 5 filed today in the above-captioned docket. A confidential copy of the exhibits is being submitted contemporaneously herewith in a sealed envelope marked Confidential Treatment Requested Under Section 302.12.
Counsel: Shaw Pittman, Robert Cohn, 202-663-8060
April 23, 2004
Motion for Confidential Treatment Under Rule 12
Counsel: Shaw Pittman, Robert Cohn, 202-663-8060, robert.cohn@shawpittman.com
June 4, 2004
Supplement No. 6 to Application
RAH is willing to commit the funds necessary for Republic's start-up costs, as identified in this docket. RAH continues to have assets in excess of $35 million available for this purpose. RAH has already provided substantial funds to Republic for the day-to-day cash requirements during the start-up phase, and RAH will continue to do so. RAH has paid significant amounts for spare parts, aircraft deposits and aircraft progress payments for the sixteen (16) EMB-170 aircraft that will be operated by Republic pursuant to the code share agreement with United. RAH intends to also fund the future aircraft progress payments when due through the first half of 2005. When the operations begin this summer, Republic will have an assured revenue stream from United through a guaranteed cost reimbursement structure. As a result, there will be no need for RAH to fund Republic's ongoing operations, but it does have the resources available to commit to Republic, if necessary.
Counsel: Shaw Pittman, Robert Cohn, 202-663-8060
June 4, 2004
Motion for Confidential Treatment
Counsel: Shaw Pittman, Robert Cohn, 202-663-8060
June 14, 2004
Withdrawal of Confidential Documents and Withdrawal of Motion for Confidential Treatment
Hereby withdraws the documents that were filed with the Motion for Confidential Treatment Pursuant to Rule 12, filed on April 23, 2004 as well as the Motion. We have been advised by the Department's staff that the documents are no longer necessary for the fitness determination.
Counsel: Shaw Pittman, Robert Cohn, 202-663-8060
Order 04-07-26
OST-03-14579 - Certificate of Public Convenience and Necessity - Interstate Scheduled Passenger
Issued July 26, 2004 | Served July 27, 2004
Order Amending Certificate | Word
By this order, we (1) find Republic Airline, Inc. d/b/a Republic Airlines (Republic) fit, willing, and able to engage in interstate scheduled air transportation of persons, property, and mail using large aircraft and (2) amend the interstate scheduled certificate currently issued to Republic to authorize such operations.
By: Karan Bhatia
November 4, 2004
Application for a Disclaimer of Jurisdiction Over the Transfer of Operating
The transfer of the operating authority to Newco is necessary to complete an intra‑corporate reorganization for business and tax purposes, to which the operating authority transfer is purely incidental. Under the reorganization, Republic's parent holding company (Republic Airways Holdings, Inc. ("RAH")) established Newco as a newly formed Indiana corporation. Republic, which is a Delaware corporation, will be merged into and with Newco and the surviving company will be called Republic Airline, Inc. d/b/a Republic Airlines. The transaction will not involve any change in the management, ownership, control, operations, financial condition or citizenship of the carrier.
Counsel: Shaw Pittman, Robert Cohn, 202-663-8060
Order 04-11-10
OST-03-14579 - Certificate of Public Convenience and Necessity - Interstate Scheduled Passenger
Issued and Served November 15, 2004
Order Disclaiming Jurisdiction and Confirming Oral Action | Word
By this order, we disclaim jurisdiction over the proposed reincorporation of Republic Airline, Inc. d/b/a Republic Airlines from a Delaware corporation to an Indiana corporation.
By: Randall Bennett
July 15, 2005
Request for Waiver of Dormancy Requirements
Republic has been working very closely with the FAA and is in the final stages of the FAA certification process. However, that process is not expected to be completed until shortly after the expiration of the one-year dormancy period. Based on Republic's communications with the FAA, Republic believes that the FAA should be in a position to issue Operations Specifications to Republic later this summer. The FAA and Republic have expended considerable time and resources on the certification process. Clearly, the government would not want all of its efforts wasted, particularly at this late stage of the process. Republic is poised to commence its proposed code-share operations immediately upon issuance of the necessary DOT and FAA authorizations.
Counsel: Hogan & Hartson, Robert Cohn
July 26, 2005
On July 15, 2005, Republic filed in Docket OST 2003-14579 a request for a waiver from the dormancy provisions of section 204.7. In its request, the carrier stated that although it has been working closely with the FAA and is in the final stages of the FAA certification process, it would be unable to make its certificate authority effective and commence operations by July 26, 2005, its one-year revocation-for-dormancy date.
It is not our policy to grant extensions from the provisions of section 204.7 unless a carrier can establish "good cause" for such action. This includes demonstrating that the company is well along in its process for obtaining FAA approval to commence operations.
Based on our most recent conversations with the FAA, it appears as though Republic is making satisfactory progress toward obtaining its FAA certificate and that the carrier will commence its proposed operations in the near future. Therefore, we grant Republic's request for a waiver from section 204.7 until November 30, 2005.
By: William Bertram
August 23, 2005
Letter Submitting Documents and Information Required by Order 2004-7-26 - Bookmarked
Republic Airline Inc., d/b/a Republic Airlines hereby submits documents and information required by the terms of the certificate of public convenience and necessity issued by the Department by Order 2004-7-26. In addition, Republic requests that the Department waive the six business day waiting period and make Republic's certificate effective by no later than August 26, 2005 (the date on which Republic expects to receive its FAA Part 121 Operating Certificate).
Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com
August 30, 2005
Request to Waive Six Day Waiting Period
This is to advise you that FAA issued to Republic Airline Inc., d/b/a Republic Airlines an Air Carrier Certificate and Operations Specifications, effective August 29, 2005, authorizing Republic to conduct scheduled passenger transportation.
Republic respectfully requests that the Department immediately issue the Effective Certificate authorizing Republic to commence scheduled passenger operations, and waive the six day waiting period.
Counsel: Hogan & Hartson, Sheryl Israel, 202-637-1992, srisrael@hhlaw.com
August 30, 2005
Re: FAA Issuance of Certificate
This is to advise you that FAA issued to Republic Airline Inc., d/b/a Republic Airlines an Air Carrier Certificate and Operations Specifications, effective August 29, 2005, authorizing Republic to conduct scheduled passenger transportation.
Republic respectfully requests that the Department immediately issue the Effective Certificate authorizing Republic to commence scheduled passenger operations, and waive the six day waiting period.
Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com
Order 2005-9-24
OST-2003-14579 - Certificate of Public Convenience and Necessity - Interstate Scheduled Passenger
Issued and Served September 29, 2005
Order Confirming Oral Action and Issuing Effective Certificate
1. We confirm our oral action of August 30, 2005, making the section 41102 interstate scheduled certificate authority issued to Republic Airline, Inc. d/b/a Republic Airlines effective on August 29, 2005.
2. We reissue to Republic Airline, Inc. d/b/a Republic Airlines the section 41102 interstate scheduled passenger certificate issued to it by Order 2005-7-29 in the attached form to reflect its effective date and the trade names “US Airways Express” and “United Express.”
3. Should Republic Airline, Inc. d/b/a Republic Airlines propose to conduct operations with more than 16 large aircraft, we direct it to notify the Department in writing at least 45 days prior to the proposed change in operations and demonstrate its fitness to conduct such operations before their commencement.
4. We direct Republic Airline, Inc. d/b/a Republic Airlines to submit to the Air Carrier Fitness Division a first year progress report within 45 days following the end of its first year of certificated operations.
By: Randall Bennett
May 18, 2007
Application for an Amendment of Certificate
Republic Airlines hereby applies for an amendment of its certificate of public convenience and necessity to remove Condition 4, which limits Republic's scheduled passenger authority to operations conducted under fee-for-service agreements with major U.S. air carriers. Republic believes there is no sound regulatory purpose for continuing to impose this certificate limitation on Republic. First, Republic has substantial financial resources and experienced management capability. Second, although Republic does not have immediate plans to launch service independent of its existing fee-for-service agreements, removal of this condition will afford Republic the flexibility to respond quickly to new marketplace opportunities and would be consistent with the statutory mandate for the Department to place maximum reliance on competitive market forces.
Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com
Order 2007-11-27
OST-2003-14579 - Certificate of Public Convenience and Necessity - Interstate Scheduled Passenger
Issued and Served November 28, 2007
By this order, we amend the interstate scheduled passenger certificate issued to Republic Airline Inc. d/b/a Republic Airlines by removing a condition in the certificate that limits the air carrier’s scheduled passenger operations to those conducted under a fee-for-service agreement, or a similar agreement, with a major U.S. air carrier.
The air carrier’s financial condition has improved significantly and the Department finds no reason to continue to restrict Republic’s operations. Moreover, Republic’s key management and technical personnel are more experienced in overseeing scheduled passenger operations than they were at the time that Republic was initially found fit. Further, with RAH having working capital in excess of $100 million, it is clear that Republic would have access to sufficient financial resources to commence such independent operations.
We remind Republic that regardless of the type of operations it conducts, either independent or under a fee-for-service agreement, or a similar agreement, with a major U.S. air carrier, the air carrier continues to remain limited to operating no more than 75 total aircraft.
By: Andrew Steinberg
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