Republic Airways Holdings [RJET] and its unionized pilots met last week to try to reach an accord so that Republic could fly 25 Embraer [ERJ] 190s for US Airways [UAIRQ].

However, Republic does not have a lock on the new 90-seat flying. US Airways has made informal solicitations to its other existing code-share partners - Air Wisconsin and Mesa Air Group [MESA] and - to fly large regional jets for the carrier once it emerges from bankruptcy.

In Republic's agreement earlier this year to acquire the Embraer 170 fleet flown by MidAtlantic Airways, a wholly owned US Airways unit, it also secured the right to fly the larger Embraer 190s in the future (RAN, March 21). That deal included both the outright purchase of 10 Embraer 170s and the assumption of 28 leases.

At the moment, Republic is the only U.S. operator for the Embraer 170, which was introduced in 2004. It has been flying the plane for United Airlines [UALAQ] and it will begin flying the 70-seat RJ for Delta Air Lines [DAL] on Sept. 1. JetBlue Airways [JBLU] is the launch customer for the Embraer 190, which is to begin service on Nov. 1. No other U.S. airline has ordered this 100-seat aircraft.

Both Mesa and Air Wisconsin are "standing in the background waiting to fill the slot if something cannot be worked out" with Republic, said Jason Hedgepeth, communications manager for Teamsters Local 747, which represents the Republic pilots.

An earlier contract between the union and Republic established a pay scale for captains flying Embraer 190s, he told Regional Aviation News.

The US Airways Jets for Jobs program is the key point of the ongoing negotiations. Dating back to its first bankruptcy, US Airways awarded regional flying contracts with the stipulation that furloughed US Airways mainline pilots be given priority in the hiring of pilots to fly regional aircraft.

"There is a Jets for Jobs agreement in place between the union and Republic, but it does not apply to the 190. It only applies to bringing on so many 170s. It will have to be amended to cover the 190s," Hedgepeth said.

If the agreement is extended to the 190, then up to 50 percent of the new pilots could come from the ranks of the US Airways furloughed pilots. There are still more than 1,800 US Airways mainline pilots on furlough.

The pay rates could be amended, he added, in the give-in-take of negotiations.

Meanwhile, the transition of MidAtlantic's 170s to Republic has not been smooth.

Republic, US Airways and the Teamsters contend the deal was an aircraft asset purchase without specific accommodations for the MidAtlantic pilots, represented by the Air Line Pilots Association (ALPA). With the exception of ALPA, all the parties have been trying to apply the Jets for Job agreement to the MidAtlantic transaction.

However, ALPA "wants 100 percent of their pilots to be flying the planes when Jets for Jobs only allows for 50 percent," Hedgepeth said. To date, very few MidAltantic pilots have come to Republic with the aircraft because of their concerns about their placement on the seniority list, he said.

Republic Airlines, a new carrier that Republic Airways hopes will be certified by the Federal Aviation Administration (FAA) later this month, will be the unit designated to fly the Embraer 190s. It will also be flying Embraer 170s for MidAtlantic.

Shuttle America, a carrier that Republic Airways purchased in May, is beginning to fly the Embraer 170s for United and soon Delta. Teamsters pilots, who have been flying the 170s for Chautauqua, are being transferred to the Shuttle America certificate. Chautauqua is being positioned to fly only the 37-seat and 50-seat Embraer RJs for Delta, US Airways, United and American Airlines [AMR].

In recent remarks to stock analysts, Republic CEO Bryan K. Bedford said the company would not go forward with a deal to fly 25 Embraer 190s for US Airways until it could find new flying assignments for the 10 50-seat RJs that US Airways Express plans to drop. Officials from Republic Airways could not be reached for comment.

US Airways' solicitation to its code-share partners is not limited to the Embraer 190, said US Airways spokesman David Castelveter. It would include the 86-seat Bombardier [BBD] CRJ 900, which is flown by Mesa. The request for a 90-seat aircraft is manufacturer-neutral.

The US Airways' reorganization plan envisions the carrier flying a 90-seat regional jet in conjunction with the retirement of some 50-seat RJs, Castelveter told Regional Aviation News. The solicitation did not include a timeline as to when the new planes would be incorporated into the fleet.

To emerge from bankruptcy, US Airways hopes to merge with America West Airlines [AWAC]. While the new carrier would still bear the US Airways name, the executives at American West would be in control. However, this particular deal seems to be a US Airways deal since the two are still independent carriers; however, the bankruptcy recovery plan was worked out with America West and its fleet plan.

Shortly after the announcement of the merger, Mesa said that the post-bankruptcy US Airways wanted Mesa to shift some of its 35 CRJ 900s already in service with America West to some East Coast routes now handled by US Airways' mainline operations.

Air Wisconsin, which currently flies 13 BAe 146s for United, was invited to submit a proposal due to its standing as a new owner in the post-bankruptcy airline. While Air Wisconsin has begun transferring its CRJ 200s from United Express to US Airways Express, it will not be moving the 80- to 100-seat 146s. Air Wisconsin is beginning to return these planes to their owners and will stop flying them for United next spring.

Officials at Mesa and Air Wisconsin could not be reached for comment.

>>Contacts: Jason Hedgepeth, Teamsters, (800) 747-2313; David Castelveter, US Airways, (703) 872-5116.<<