Company Adds Three Airlines To United Express Program

On Monday, United Airlines named Chautauqua Airlines, Republic Airlines and Shuttle America as new United Express partners. The Regionals will begin operating as United Express later this year. Under the agreement, Chautauqua will operate 16 50-seat regional jets, Republic Airlines will fly 16 70-seat RJs and Shuttle America will operate 10 Saab 340s.

The 32 RJs and 10 turboprops will serve United's Washington Dulles and Chicago O'Hare hubs as well as "a number of other smaller markets" in the US. The agreements with Chautauqua and Republic expire in 2014 while the contract with Shuttle America runs through 2005 and includes a renewal option. Other United Express partners are SkyWest Airlines, Trans States Airlines, Air Wisconsin, Mesa Air Group and Atlantic Coast Airlines. ACA, which operates as a United Express carrier at Dulles, is leaving the network to form its own low-fare airline, Independence Air, thus necessitating selection of replacement carriers there. Chautauqua and Republic are wholly owned subsidiaries of Republic Airways Holdings, which is owned by investment funds that are managed by Wexford Capital. Wexford also owns Shuttle America.

United Airlines, operating in bankruptcy protection, sees this a positive step toward additional cost-cutting measures. "These agreements will help us continue to meet the demands of our customers with competitive fares and a full schedule of flights to large and small communities across the country," said Doug Hacker, executive vice president of Strategy. "These agreements will help us continue to meet the demands of our customers with competitive fares and a full schedule of flights to large and small communities across the country--and the world."

FMI: www.ual.com