Can Republic succeed as a Full Airline?

Republic Airways is a holding company that owns Chautauqua Airlines, Republic Airlines and Shuttle America. They fly under contact for various airlines, including American, Continental, Delta, United, US Airways, Midwest, and Mokulele Airlines. As a contractor, Republic has just flown the planes, leaving routes, marketing, sales and ground operations to its other airline.

But now they will be taking over Frontier Airlines and Midwest Airlines. Not exactly the largest of airlines, but that will put them into the position of transitioning from a collection of small regional carriers to a big airline. It also puts them in the awkward position of competing with airlines that contract with them for service.

We all remember Independence Air, which had operated regional service for Delta and United as Atlantic Coast Airlines, who became an independent carrier only to fall into bankruptcy. We also remember Expressjet and its short-lived experiment in operating under its own brand.

But Republic, as a holding company, does have a chance. It can reorganize the two airlines. Reorganizing Midwest as a carrier operating a fleet of Embraer 190s seems a good move for the carrier in the smaller market. We’re unsure of how they will revitalize Frontier, however.

It is hard enough to compete with the big carriers in Milwaukee and Kansas City, Midwest’s hubs, but Frontier’s base in Denver is not only a United stronghold, but has a significant Southwest presence.

Frontier’s attempts to break out in new markets that are not to/from Denver did not work out. Frontier did attempt to establish a focus city at Los Angeles International Airport during 2004. They tried again two years later, with five daily nonstop flights between Los Angeles and San Francisco, as well as daily non-stop service linking San Francisco to Las Vegas. They lasted less than a year at that. We’re hoping that new management will not only find a way for them to continue at Denver, where they have done very well despite competition, but make other markets work for them.

We’ll be watching.

• Republic Airways Acquires Frontier and Midwest (flightwisdom.com)