Great Lakes Airlines (Cheyenne, Wyoming) continues normal operations this weekend despite defaulting on a $27.5 million loan with Callidus Capital Corporation according to Wyoming News.com.
Airline officials expect to resolve the issue soon. Both sides are in negotiations to resolve the default according to the report. The lending company could however take back leased assets of the airline at any time.
Read the full report:
Top Copyright Photo: Ton Jochems/AirlinersGallery.com. Beech (Raytheon) 1900D N192GL (msn UE-192) taxies at Los Angeles International Airport.
Air New Zealand (Auckland) has announced it will phase out its 19-seat Beechcraft 1900D fleet operated by Eagle Airways (Hamilton) under the Air New Zealand Link banner. ANZ is acquiring four additional ATR 72s to complete the phase out by August 2016.
Copyright Photo: Colin Hunter/AirlinersGallery.com. Eagle Airways’ Beechcraft 1900D ZK-EAL (msn UE-435) arrives at the Auckland hub.
Great Lakes Aviation has announced it has engaged Raymond James as its investment banker to advise the Company with respect to new financing options and strategic alternatives. As part of its assignment, Raymond James will also assist the Company in evaluating changes to its business and fleet configuration.
In March of this year the Company was successful at certifying new FAA Operations Specifications that have enabled the Company to hire pilots despite recent regulatory changes that have had the effect of materially reducing the supply of qualified pilot applicants for the regional airline sector in general. The reductions in small community air service capacity seen across the U.S. in 2014 are a result of this same reduced pilot supply, and are creating the need for a re-invented regional airline industry. The Company intends to respond to that need.
Great Lakes provides scheduled passenger service to over 30 airports throughout the mid-west and western United States operating a fleet of Embraer EMB-120 Brasilias, and Beechcraft 1900D regional airliners.
Copyright Photo: Ton Jochems/AirlinersGallery.com. Beech 1900D N220GL (msn UE-220) in the promotional tail design for Alamosa, Colorado taxies at Los Angeles.
Great Lakes Airlines (Cheyenne) has announced it will end Essential Air Service (EAS) passenger service a month early at Great Bend, Kansas on April 1. The struggling regional carrier will also end passenger flights at Dickinson, North Dakota on March 26 after 21 years. Williston, North Dakota will be dropped on March 30. Great Lakes will also suspend operations at McCook, Nebraska on April 1. The airline is blaming a pilot shortage but critics state the company does pay enough to attract enough pilots.
SeaPort Airlines has bid on the routes with the Department of Transportation (DOT).
Great Lakes has received permission to operate some of their Beech 1900Ds with only 9 seats (please see the seating diagram below) rather than the normal 19 seats so the aircraft can be operated under Part 135 regulations. This allows the company to hire First Officers who have less the 1500 hours FAA requirement. The aircraft still have a captain with at least 1500 hours of experience with an ATP rating. Even with this measure, the airline was not able to stave off the termination of service to these affected cities.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Beech (Raytheon) 1900D N201GL (msn UE-201) with a promotional Pierre, South Dakota image on the tail arrives at Los Angeles International Airport (LAX).
The shrinking Great Lakes Route Map (routes shown as of February 1):
Silver Airways (Fort Lauderdale/Hollywood) has made the important decision to drop the Cleveland hub following United Airlines’ (Chicago) decision to phase down and de-hub Cleveland Hopkins International Airport. The regional carrier has also made the decision to phase out and retire the remaining Beech 1900Ds and concentrate its fleet around the SAAB 340B.
Copyright Photo: Tony Storck/AirlinersGallery.com. Beech 1900D N47542 (msn UE-198) in United Express colors taxies to runway 9L at Fort Lauderdale-Hollywood International Airport.
The company issued this statement:
As part of its plan to strengthen operations, simplify its fleet, increase revenue, reduce costs, and better position the airline for future growth and new markets, Silver Airways has announced plans to exit operations in its Cleveland network and retrain or redeploy its pilots, mechanics, and airport team members to operate its core SAAB 340B Plus fleet to its key markets.
Silver provided the U.S. Department of Transportation (DOT) with the required 90-day notice of its intent to discontinue scheduled service between Cleveland and five communities no later than May 15, 2014, including Jamestown, New York (JHW); Bradford, Pennsylvania (BFD); DuBois, Pennsylvania (DUJ); Franklin, Pennsylvania (FKL); and Parkersburg, West Virginia (PKB).
Great Lakes Aviation, Ltd. (Great Lakes Airlines) (Cheyenne, Wyoming) on February 1 suspended service to and from Devils Lake and Jamestown, North Dakota; Fort Dodge and Mason City, Iowa; Ironwood, Michigan; and Thief River Falls, Minnesota due to the severe industry-wide pilot shortage and its relative acute impact on Great Lakes according to a company statement.
Charles Howell, CEO released the following statement: “Due to the unintended consequences of the new congressionally mandated pilot regulatory requirements, the company feels it is in the best interest of our customers, communities, and employees to suspend service from these stations until we are able to rebuild our staff of pilots in order to provide reliable service. We deeply regret and apologize for this inconvenience.”
All customers with future flights in any of these stations will be given refunds.
Editor’s Comment: Many pilots and pilot groups (as the comments will attest) would strongly argue it is not a pilot shortage issue facing GLA but a pay issue. Simply put, higher pilot wages would probably attract more applications.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Great Lakes promotes many of its destination with area displays on the tails. Beech (Raytheon) 1900D N202UX (msn UE-202) promotes Dodge City, Kansas as it arrives in Los Angeles.
Great Lakes Airlines:
Updated Route Map: Despite its name, the airline does not serve a city on any of the Great Lakes.
Following a previously announced Request for Proposals (RFP), Air Canada has announced that it has signed an MOU to expand its relationship and amend its capacity purchase agreement (CPA) with Air Georgian. Air Georgian has been selected to operate a number of additional regional routes including trans-border routes in mid-2014 using Canadair Regional Jet aircraft.
“We are pleased to expand our longstanding commercial relationship with Air Georgian that will allow Air Canada to introduce more cost-competitive operations in a number of our key regional markets,” said Kevin Howlett , Air Canada’s Senior Vice President, Regional Markets. “The competitive bid process generated a significant level of response from a number of Canadian and U.S. regional operators. Following a thorough evaluation of proposals received, Air Georgian was selected on the basis of a broad range of criteria including operational safety, efficiency, cost and service. The award of additional flying to Air Georgian is an important step in our regional airline diversification strategy and ongoing cost transformation program.”
“We are excited with this opportunity to expand Air Georgian’s presence as an Air Canada Express regional operator beginning in 2014,” said Eric Edmondson , President of Air Georgian. “The selection of Air Georgian for this expanded role is based on our proven ability to offer seamless connections and service for Air Canada customers that is of mutual benefit for both airlines. We look forward to continuing to expand our relationship, building on our solid partnership with Air Canada that has developed over the past 13 years.”
The implementation of the amendment to the CPA remains subject to the parties making any necessary filings, obtaining regulatory approvals and finalizing documentation.
Air Canada currently has capacity purchase agreements with four regional airline partners that operate under the banner Air Canada Express: Jazz, Sky Regional, Air Georgian and EVAS.
Air Georgian became a Tier III partner of Air Canada in 2000, operating as Air Alliance under a CPA. Today Air Georgian operates under the brand Air Canada Express, focusing on transborder and domestic airline operations carrying over 350,000 passengers per year for Air Canada from Toronto’s Pearson International Airport, Montreal’s Pierre Elliott Trudeau International Airport, Halifax’s Robert L. Stanfield International Airport and Calgary’s International Airport to 19 Canadian and U.S. destinations.
Air Georgian has been providing aviation services and charter flight solutions for more than 25 years. Air Georgian also operates and/or maintains a fleet of corporate jets from its base in Toronto. Air Georgian is an IATA registered airline and recently achieved the coveted ARGUS Platinum Audit Rating along with IS-BAO Stage 1 registration.
Copyright Photo: Keith Burton/AirlinersGallery.com. Air Georgian currently operates 16 Beechcraft (Raytheon) 1900D turboprops. 1900D C-GORC (msn UE-320) arrives back at the Toronto (Pearson) hub.
Air Canada Express-Air Georgian:
Current Air Canada Express routes operated for Air Canada:
Silver Airways (United Express) (Fort Lauderdale/Hollywood and Gainesville, FL) and United Airlines (Chicago) have announced that they have reached agreement reaffirming the code-share relationship between the two carriers on service throughout Florida and the Bahamas. In addition, Silver Airways will continue to operate as an United Express carrier in their shared Mid-Atlantic hubs in Cleveland and Washington, DC (Dulles).
News of the renewed relationship follows a June 2013 release from Silver Airways announcing that it had successfully migrated to a new, stand alone reservations system and website powered by Sabre.
Air Georgian Limited (AGL) (Air Canada Express) (Toronto-Pearson) has signed a memorandum of understanding (MOU) with Regional 1 Airlines (R1) (Calgary), a subsidiary of Avmax Group Inc., a fully integrated aviation company with operations in Canada, United States, Africa and Afghanistan. Regional 1 Airlines and Air Georgian Limited will merge operations under one management team through the creation of a parent holding company.
Air Georgian will continue to focus primarily on its CPA relationship with Air Canada (Montreal). Air Georgian currently operates Beechcraft (Raytheon) 1900D aircraft under the brand name of Air Canada Express. R1 will focus on expanding its domestic presence, specializing in serving the natural resource sector. R1 will further expand upon its existing international operations, specializing in ACMI contracts in remote regions, as well as continuing to support the United Nations World Food Program and other peacekeeping and humanitarian programs.
This strategic merger will allow the new combined entity to position itself as a unique, fully integrated airline leveraging the technical, geographical and asset strengths of Avmax and the professional management and strong operational background of Air Georgian. Air Georgian and Regional 1 Airlines will benefit from having access to the world’s largest private fleet of Dash 8 and CRJ series aircraft, over $100 million in spare parts and domestic maintenance bases in Halifax, Montreal, Kingston, Toronto, Calgary and Vancouver. International operations will be supported through Avmax maintenance bases in Great Falls, Montana, Jacksonville, Florida, Nairobi, Kenya and N’djamena, Chad in Africa.
Eric Edmondson will assume the President and CEO role at the newly formed parent company, as well as the role of President at both Air Georgian and Regional 1 Airlines. Daniel Revell will continue to be the CEO of Air Georgian and John Binder will continue in his role as CEO of Regional 1 Airlines. Scott Monsen will become the CFO & VP Finance at the parent company and its subsidiaries. Daniel Bockner will be the VP, Flight Operations & Security, while Brad Warren will fill the role of VP, Maintenance & Technical. Rick Giacomuzzi will hold the position of VP, Finance at Regional 1 Airlines. This merger does not impact the current structure or operations of any other subsidiary within AvMax Group Inc.
Upon closing, the combined operations will utilize Beechcraft 1900D, de Havilland Canada (Bombardier) DHC-8-100, DHC-8-300 and CRJ100/200 aircraft types, with the ability to quickly add additional larger gauge aircraft types with the long term goal of positioning the brands as major players in the 18-76 seat turbo-prop and jet market. Air Georgian will continue to operate, maintain and support the corporate jet charter market in Toronto as well as offering third-party training to the airline and corporate aviation sectors.
Copyright Photo: TMK Photography/AirlinersGallery.com. Beechcraft (Raytheon) 1900D C-GORA (msn UE-326) taxies at the Toronto (Pearson) hub in the Air Canada Express livery.
Air Canada (Montreal) announced today it will commence scheduled service to Red Deer, Alberta on September 3, 2013 with three daily flights from Red Deer Airport to Calgary. Flights will be operated by Air Georgian (Toronto-Pearson) under the Air Canada Express brand, using 18-seat Beechcraft 1900D aircraft.
Copyrigth Photo: Keith Burton/AirlinersGallery.com. Beech (Raytheon) 1900D C-GAAR (msn UE-207) prepares to land at the Toronto (Pearson) hub.
Air Canada Express-Air Georgian:
Route Map: Air Georgian operates from three far-flung Air Canada hubs.