Sunday, July 13, 2008

Republic Airways to eliminate 500 jobs

Republic AirwaysRepublic Airways Holdings -- the parent company of regional air carriers Chautauqua Airlines, Republic Airlines and Shuttle America -- announced late last week that it will reduce its work force by 10%, or about 500 employees. According to Republic Airways, the company currently employs approximately 5,000 people. The staff reductions will be implemented over the next several months.

“These reductions reflect our response to the actions our network partners are taking to reduce the size of their domestic hub operations in light of sustained, high fuel prices. The combined impacts of fewer aircraft flying and lower utilization rates on our smaller jet aircraft are leaving us with no choice but to adjust our business to current market conditions,” said Bryan Bedford, Chairman, president and CEO of Republic Airways. “We regret having to make this difficult decision and we will continue working hard to grow our business with larger capacity aircraft and get our people back to work as soon as possible.”

Republic's 227 regional jets operate under contract as American Connection, Continental Express, Delta Connection, United Express and US Airways Express flights. Earlier this month, United Airlines notified Republic that it plans to terminate its contract with Chautauqua at the end of next year. United also has a contract with Shuttle America.