AirTran/SkyWest Deal Concerns Pilots

As AirTran Airways steps up the competition at Milwaukee, pilots at AirTran are concerned about the airline’s new deal with SkyWest to support AirTrans service at Milwaukee’s General Mitchell International.

Orlando, FL-based AirTran Holdings has entered into a marketing partnership with SkyWest, a subsidiary of St. George, UT-based SkyWest Inc., to offer regional jet service between Milwaukee and six destinations: Pittsburgh; St. Louis; Akron/Canton; Indianapolis; Des Moines; and Omaha.

Service under this new agreement will begin next month. Once fully implemented in February 2010, SkyWest will offer 18 daily non-stop flights from Milwaukee to the six destinations. Since failing in its bid two years ago to take over Milwaukee-based Midwest Airlines, AirTran steadily has increased its presence at the airport.

SkyWest Airlines entered into a code share agreement with AirTran Airways. Under the terms of the code share agreement, SkyWest Airlines will operate five CRJ200s under a pro-rate arrangement with two aircraft scheduled to begin service in December 2009 and three aircraft scheduled to begin service in early 2010. The code sharing agreement has a three-year term; however, after May 15, 2010, either party may terminate the agreement upon 120 days written notice.

It will be the first time that SkyWest has operated as a branded carrier, with revenue from ticket sales through AirTran shared on a prorated basis. "This unique partnership and expanded service is an exciting next step for our Milwaukee focus city," AirTran Senior VP-Marketing and Planning Kevin Healy said. "We are delighted to make new and interesting destinations available to our customers and now offer more choices than ever to, from and through Milwaukee to the rest of the country."

But AirTran pilots say outsourcing is bad for business.

AirTran pilots, who are represented by the Air Line Pilots Association (ALPA), have been in contract negotiations for five years and are seeking guarantees that the company will not farm out work to the lowest bidder.

Stated the union pilots: “The pilots of AirTran are deeply concerned that our management is outsourcing flying, even while the company’s mainline growth has been stagnant for the past two years. While we applaud any moves by the company to increase profitability, we strongly believe that AirTran customers expect and deserve to be flown on AirTran planes with AirTran pilots in the cockpit.

“Outsourcing AirTran flying to a regional carrier runs the risk of diminishing the travel experience in the eyes of our customers, and goes directly against the business model that has made this company a success. AirTran is known for its business class seats, XM Radio and WiFi Internet access, none of which would be provided on a 50-seat Regional Jet (RJ).

“AirTran has been marketing its full-sized aircraft in Milwaukee as a more comfortable alternative to Republic Holdings’ smaller RJs. It would be unfortunate if AirTran were to cede that advantage as it works to gain market share in the Midwest.

“Furthermore, it is unclear how the utilization of RJs in 2010 would be any more successful than it was in 2003, when the company ended AirTran Jet-Connect.

“As partners in the success of this airline, we are asking AirTran management to work with the pilots and other employees in the future to encourage the growth of the company from within—as they’ve done in the past with notable success,” the pilot added.