SkyWest Charter Gains DOT Approval Amid Scrutiny

‍DALLAS – The U.S. Department of Transportation (DOT) tentatively certified SkyWest Charter (CW) to begin operating as a commuter air carrier, a milestone for the subsidiary of American regional airline SkyWest (OO).

The certification is conditional and follows almost three years of regulatory challenges. CW plans to operate public charter flights under Part 135 regulations with 30-seat CRJ-200 aircraft, filling air service voids in small communities, some of which qualify for the Essential Air Service (EAS) program.

A Strategic Expansion into Public Charter

With smaller regional airlines having difficulty keeping routes to small airports open because of pilot shortages and operating expenses, CW will enter the gap created by decreased air service. The carrier, which is now flying on-demand charter service, will have 25 markets in its first year, with its fleet of 18 aircraft.

Part 135 certification differs from conventional Part 121 certification and its more stringent regulatory standards. In this regard, SWC's business model resembles JSX (XE) and Contour Airlines (LF).

Regulatory Difficulties, Backlash by Industry

Although initially approved, CW has been opposed by industry organizations led by the Air Line Pilots Association (ALPA). The union contends that opening the door to carriers such as CW to bypass normal Part 121 rules can dilute safety measures and open a backdoor for reduced regulatory scrutiny concerning pilot training, rest rules, and safety inspection.

ALPA has consistently advocated for more stringent pilot qualification standards and is fighting attempts to allow airlines to conduct Part 135 exemption operations with regional jets. Nevertheless, the DOT does not agree with these apprehensions, citing existing FAA regulations under Part 135.

The agency further added that CW will go beyond the minimum by enacting:

• Two ATP-rated captains in the cockpit rather than a captain and first officer configuration.
• Safety management systems (SMS) related to Part 121 operations.
• Compliance with Part 117 rest rules, although Part 135 does not mandate them.
• Operations from TSA-screened airports, guaranteeing passengers full security screening.

Commitment to Regional Air Service

SkyWest Airlines flies thousands of daily flights for major U.S. carriers under Part 121 regulations. However, it has flown fewer planes to smaller towns in recent years due to the regional industry's pilot shortage and economic challenges—hence OO’s plan to recapture lost routes without requiring the full return of Part 121 regional flights.

The regional carrier's fleet comprises the following aircraft: E175 (76-seats), E175 (70-seats), CRJ900, CRJ900 ATMOSPHERE, CRJ700 (70-seats), CRJ700 (69-seats), CRJ700 (65-seats), and CRJ200.

SkyWest CEO Chip Childs underscored the importance of SWC's approval in sustaining the connectivity of small communities. According to him, the firm is actively "re-engaging with the FAA" and sees SWC as a "significant strategic opportunity" to serve impacted areas better.

Next Steps, Potential Roadblocks

The DOT's preliminary ruling is not final. Interested parties have 14 days to object, and then the agency will make a final order, subject to SWC fulfilling all conditions.

Under the previous administration, the FAA opened a review of public charter regulations, concerned that alterations might put more stringent oversight on Part 135 operators. The reviews were motivated by concerns regarding safety, pilot education, and consumer protection, which some regulators consider weaker under Part 135 than Part 121.

With the new political shift, only time will tell whether the Trump administration will follow this regulatory drive or be more business-friendly, relaxing regulations on public charter operators such as SWC and JSX.

Implications for Regional Aviation

Akywest Charter's approval could signal a broader trend within the U.S. regional airline sector. More carriers are turning to Part 135 solutions to combat pilot shortages and economic stress. 

While legacy regional carriers suffer from fleet reductions and hiring woes, public charters are an appealing solution for maintaining service to smaller markets.

If CW becomes a successful operation, it could encourage other regional carriers to adopt similar business models, reframing how air service is delivered to secondary and tertiary markets. 

The next few weeks will determine whether regulatory hurdles continue or whether CW's model is a viable solution for small-community air service.

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