By Joe Brancatelli
ROUTE MAP
The New Big Name in Small Airlines Is Republic Airways: Two troubled smaller carriers, Denver-based Frontier Airlines and Milwaukee-based Midwest Airlines (fka Midwest Express), were purchased in rapid-fire succession late in June. The moves were made by Republic Airways, the new big name in small airlines. If you don’t know Republic, here’s the backgrounder:
- It owns three regional carriers (Chautauqua, Republic and Shuttle America), flies commuter service for all of the legacy carriers, recently purchased a controlling interest in Mokulele, the start-up inter-island carrier in Hawaii, and is funded by Wexford Capital, a powerful, under-the-radar investment group.
- Republic first moved on Frontier, announcing that it had made a $108.75 million bid to purchase the bankrupt carrier, which has reported seven consecutive profitable months.
- It then announced the Midwest buy, agreeing to pay $31 million to purchase it from the investment group that once controlled both Continental and America West airlines.
- Although Republic’s long-term plans are not known, the company’s top executive, Bryan Bedford, says both Frontier and Midwest will continue to operate as separate airlines.
- One immediate switch, however, will come at Midwest. Midwest will shed its remaining Boeing 717 jets and become an all-regional-jet carrier. The move to regional-carrier status is a big emotional and physical comedown for Midwest, which once offered flights with all-leather 2×2 seating and lavish, restaurant-quality meals at coach-class prices.
Related Orbitz resources:
Joe Brancatelli is editor and publisher of JoeSentMe.com, a non-commercial Web site for business travelers. Copyright 2009 by Joe Brancatelli. Licensed by contract for Orbitz use.
