US regional Colgan Air will relocate its headquarters from Manassas, Virginia to Memphis, Tennessee, where parent company Pinnacle Airlines is headquartered.
Colgan's leadership team and system operations control centre will begin moving by the end of 2009 as Pinnacle finalises its subsidiary's relocation plans this quarter.
Pinnacle estimates the cost of relocation, training and infrastructure associated with the move at roughly $3 million.
But Pinnacle is "negotiating with state and local authorities to obtain certain long-term incentives that will help offset the cost of relocating Colgan's headquarters", the company said today in its quarterly report.
Pinnacle says the move was motivated by a lower cost of living and the opportunity to enhance the sharing of operational and safety "best practices" between Pinnacle and Colgan.
The focus on sharing operational and safety practices follows a fatal Colgan Bombardier Q400 crash on approach to Buffalo during the first quarter.
The accident prompted congressional and regulatory scrutiny of the regional airline industry and raised concerns about pilot fatigue and training.
Last month, US House lawmakers introduced a bill to force the FAA and air carriers to rapidly boost regional airline safety through enhanced training and hiring requirements, fatigue countermeasures other interventions.
Also in July, the FAA stepped up pressure on carriers to adopt voluntary safety schemes and the US Office of Inspector General (OIG) began auditing FAA regulations and domestic airline policies regarding crew rest and fatigue. The inspection was at the request of the US Senate commerce, science, and transportation committee and the Senate aviation subcommittee.