Recently-announced plans by Republic Airways Holdings of planned acquisitions of Frontier and Midwest airlines generated massive attention on the Indianapolis-based regional operator, and caused its competitors to pause.
Chief executive of Mesa Air Group Jonathan Ornstein recently told employees it's clear Republic would like to gain some independence. And while he says the move is somewhat risky, it is also creative.
"Let's keep an eye on what happens at Republic," he says.
Adding some context to Republic's strategy of buying its former partner Frontier and current partner Midwest, Ornstein warns of US regional industry looking to reshape itself as major carriers strive to survive in an anemic demand environment.
Ornstein and Mesa were early movers in creating business opportunities independent of the traditional capacity-purchase regional model. While it ultimately sold its stake in Chinese joint venture Kunpeng Airlines Mesa's Hawaii subsidiary go! recently celebrated its third anniversary.
Ironically enough go! now competes with Mokulele Airlines, another carrier with ties to Republic. Earlier this year Republic took a 50% stake in Mokulele after converting an existing loan to its Hawaiian partner into an equity stake. Republic Embraer E-170s flown under the Mokulele banner compete against go!'s 50-seat CRJ200s in interisland markets along with Boeing 717s operated by Hawaiian.
Will there be similar competitive scenarios created as the US regionals move to disperse some risk from their traditional models? Not all carriers have the cash war chests of Republic or SkyWest Inc, who recently expanded its stake in Brazilian regional carrier TRIP.
We'll soon see if the reward is worth the risk.
Chief executive of Mesa Air Group Jonathan Ornstein recently told employees it's clear Republic would like to gain some independence. And while he says the move is somewhat risky, it is also creative. "Let's keep an eye on what happens at Republic," he says.
Adding some context to Republic's strategy of buying its former partner Frontier and current partner Midwest, Ornstein warns of US regional industry looking to reshape itself as major carriers strive to survive in an anemic demand environment.
Ornstein and Mesa were early movers in creating business opportunities independent of the traditional capacity-purchase regional model. While it ultimately sold its stake in Chinese joint venture Kunpeng Airlines Mesa's Hawaii subsidiary go! recently celebrated its third anniversary.
Ironically enough go! now competes with Mokulele Airlines, another carrier with ties to Republic. Earlier this year Republic took a 50% stake in Mokulele after converting an existing loan to its Hawaiian partner into an equity stake. Republic Embraer E-170s flown under the Mokulele banner compete against go!'s 50-seat CRJ200s in interisland markets along with Boeing 717s operated by Hawaiian.
Will there be similar competitive scenarios created as the US regionals move to disperse some risk from their traditional models? Not all carriers have the cash war chests of Republic or SkyWest Inc, who recently expanded its stake in Brazilian regional carrier TRIP.
We'll soon see if the reward is worth the risk.
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