In opposition papers filed with the Department of Transportation (DOT), a pilots union is fighting efforts to launch Republic Airlines, a start-up regional jet service based in Louisville, Ky. Teamsters Local 747 opposes Republic's request for a DOT operating permit and contends that Republic is being set up as a cost-savings device for the parent company, Republic Holding Group, which owns both Chautauqua Airlines and Republic.

The Teamsters worry that Republic will pay its employees less and draw off business from Indianapolis-based Chautauqua, which could lead to Chautauqua's demise.

Chautauqua recently lost a bid to gain a code-share with United Airlines [OTC BB: UALAQ.OB]. The major airline instead awarded it to Trans States Airlines. Chautauqua CEO Brian Bedford told his employees that the pilots union's plans for a possible strike soured Chautauqua's chances with United (CRAN, July 21).

In the DOT filing, the union claims that Republic's assertion that it would be a financially stable "strong new entrant" in the regional jet market is "mere puffery."

Republic officials deny the union's claims and plan to start operating in Louisville by November.

>>Contact: Warren Wilkinson, Chautauqua, 317-484-6042; ALPA, 703-689-2270.<<