From: http://www.courier-journal.com/business/news2003/07/23/biz-front-republic-6445.html Union opposes Republic Airlines Pilots claim company hurts Chautauqua, will be hurt, Teamsters say -------------------------------------------------------------------------------- By CHRIS POYNTER cpoynter@xxxxxxxxxxxxxxxxxxx The Courier-Journal A pilots union is fighting efforts to launch Republic Airlines, a start-up regional jet service to be based in Louisville. In documents filed with the U.S. Transportation Department, Teamsters Local 747 opposes Republic's request for an operating permit and contends that Republic is a sham company created to harm Indianapolis-based Chautauqua Airlines. Chautauqua and Republic are owned by the same parent company, Republic Holding Group Inc., and the Teamsters say they fear that Republic will pay its employees less and siphon business from Chautauqua, which could lead to Chautauqua's demise. Republic officials deny the claim ? and say they are pushing forward with plans to be operating in Louisville by November, as they promised nearly six months ago. "The labor challenges that Chautauqua is dealing with today will not impact what is going on in Louisville," Republic spokesman Warren Wilkinson said yesterday. Louisville International Airport general manager Jim DeLong called the labor dispute "a serious issue" yesterday, but said he has been assured that Republic is not backing away from plans to make Louisville its corporate and maintenance home. He told the Louisville Regional Airport Authority at its board meeting last week that the dispute is a significant matter that he and others are closely monitoring. The airport, however, is proceeding with plans to build Republic a $5 million hangar and office building to lease to the airline. Republic also will receive up to $7.8 million in Kentucky tax rebates in the next decade if the company meets its projections for hiring 355 people for an annual payroll starting at $12.4 million. DeLong said he's concerned that "a labor group causing unrest ... could jeopardize what is critically important to the city of Louisville." Wilkinson said yesterday that Republic is moving ahead with plans to start operations with two flights ? one between Louisville and New York's LaGuardia Airport and the other between Louisville and Ronald Reagan Washington National Airport in the nation's capital. The company plans to have 20 planes operating during its first 12 months. Before Republic can begin flying, it must have permits from the Department of Transportation and the Federal Aviation Administration. The Transportation Department screens airlines to ensure they are economically viable. The FAA screens for safety. Kathleen Berger, a spokeswoman for the F AA 's Atlanta office, said Republic's application to fly is under consideration. Republic filed its papers May 23, and a normal approval process can take up to six months, Berger said. Bill Mosely, a Transportation Department spokesman in Washington, D.C., said his agency's screening process does not specifically allow for consideration of labor disputes. It can become a factor , h owever, if the labor union claims the dispute could affect the start-up airline's economic viability , he said . In opposition papers filed with the Transportation Department, the Teamsters say Republic's assertions of being a "strong new entrant" in the regional jet market is "mere puffery." The union contends that Republic is an "alter-ego" of Chautauqua and does not have adequate financing to begin operations. Allowing Republic to form would duplicate services provided by Chautauqua Airlines, which provides regional jet service for several major airlines, including US Airways, according to the six-page opposition paper. Republic disputes those claims, saying the company will grow faster than most regional airlines and is "well-financed ... with more than ample resources." Republic was formed this year after Chautauqua pilots rejected a plan, known as "jets for jobs," in which US Airways contracts with regional jet services to shuttle passengers to and from small and medium-sized cities to hub airports. In return, the regional jet company agrees to hire laid-off US Airways pilots affected by the company's bankruptcy. In the spring, after Chautauqua employees realized that Republic was for real and planned on locating in Louisville, Chautauqua pilots took another vote on "jets for jobs," this time approving the idea. The union thought that might stop Republic from becoming a reality because those new jobs from US Airways could be diverted to Chautauqua. Jason Hedgepeth, a spokesman for the Teamsters in Houston, said Republic Holding should stop plans for Republic Airlines because Chautauqua pilots and employees "have shown they are willing to work with the company." Wilkinson said yesterday , however, that the second "jets for jobs" vote was "a year too late." If approved, Republic will fly under the US Airways Express banner. US Airways will handle all of Republic's marketing, reservations and ticketing. Meanwhile, US Airways will pay Republic for the flights, regardless of how many passengers it carries, according to Republic's application with the Transportation Department. Republic will operate 50-seat jets. However, DeLong said, the company is already preparing for growth and has asked the airport board to build a slightly larger hangar than originally planned, to accommodate 70- to 90-seat planes. _________________________________________________________________ Add photos to your messages with MSN 8. Get 2 months FREE*. http://join.msn.com/?page=features/featuredemail