Tag Archives: Republic Airlines (2nd)

Republic Airlines Q400 flight blows tire on takeoff, makes an emergency landing at Denver

Republic Airlines (2nd) (Indianapolis) United Express flight UA 4870 from Denver to Kansas City yesterday (March 14) with a Bombardier DHC-8-402 (Q400) blew a tire on takeoff. After burning off fuel, the aircraft made a safe emergency landing back at DEN. The blown tire and landing were captured on video.

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Republic Airways Holdings orders five additional Embraer E175 regional jets

Embraer and Republic Airways Holdings Inc. (Republic Airlines 2nd) (Indianapolis), operator of the largest E-Jet fleet in the world, signed an order for five new E175 jets. The contract, with an estimated value of $222 million, based on Embraer’s list price, will be included in the 2015 first-quarter backlog. The aircraft, configured in dual class with 76 seats, are expected to be delivered in mid- 2016.

This order of five E-Jets is in addition to the previous two orders for E175s placed by Republic in January 2013, for 47 firm aircraft, and in September 2014, for 50 firm aircraft. Apart from this new order, Republic maintains 32 options for the E175s.

Copyright Photo: Rob Finlayson/AirlinersGallery.com. Republic Airlines (2nd) Embraer ERJ 170-200LR (marketed now as the E175) N401YX (msn 17000363) lands at Miami International Airport (MIA).

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Republic Airways Holdings reports net income of $64.3 million for 2014

Republic Airways Holdings Inc. (Republic Airlines and Shuttle America) (Indianapolis) has reported its financial results for the fourth quarter and full year ended December 31, 2014. The company reported net income of $64.3 million for 2014, a significant increase from its  net income of $26.7 million in 2013.

As planned, Chautauqua Airlines ended operations on December 31, 2014 and was rolled into Shuttle America as previously reported.

The company issued this report:

Republic Airways Holdings logo

Republic’s pre-tax income excluding special items, for the fourth quarter of 2014 was $32.1 million, an 8.4 percent increase over the fourth quarter or 2013. Republic’s adjusted income from continuing operations for the fourth quarter of 2014 was $19.8 million, or $0.39 per diluted share, and its adjusted pre-tax margin was 9.3 percent.

For the full year of 2014, Republic’s pre-tax income, excluding special items, was $120.2 million, a $17.7 million increase over 2013. Republic’s adjusted income from continuing operations for 2014 was $73.4 million, or $1.40 per diluted share, with an adjusted pre-tax margin of 8.7 percent.

On a GAAP basis, including special items, Republic’s fourth quarter 2014 pre-tax loss was $1.4 million, pre-tax margin was -0.4 percent and income from continuing operations was $11.7 million, or $0.23 per diluted share. On a GAAP basis, including special items, Republic’s 2014 pre-tax income was $85.2 million, pre-tax margin was 6.2 percent and income from continuing operations was $64.3 million, or $1.24 per diluted share.

On January 1, 2015, Republic completed its consolidation of all Chautauqua Airlines operations onto the Shuttle America operating certificate. All operating aircraft and related employees are now transferred to Shuttle America’s operation. Republic hopes to sell the remaining Chautauqua Airlines entity and related assets during the first half of 2015.

During the fourth quarter of 2014, Republic extended the service terms of aircraft under its fixed-fee capacity purchase agreements with US Airways, Inc. and Delta Air Lines, Inc. Republic also agreed to operate an additional nine E170 aircraft for Delta Air Lines, Inc.

“We took some significant steps in 2014 in our effort to simplify and streamline our business,” said Republic Airways Holdings Chairman, President and CEO Bryan Bedford. “While this simplification strategy results in near-term transition expenses, such as the fleet impairment charge we took this quarter, the actions that we’ve taken in 2014 and that we intend to take in 2015 are key to the future success of our airline.”

The impairment and other charges in 2014 were due to impairment and other charges on owned E140 aircraft which were abandoned of $19.9 million; owned E190 aircraft which are in the process of being sold of $14.4 million; owned Q400 aircraft which are scheduled to come out of service in the third quarter of 2016 of $13.3 million, and a loss on sale of E190 aircraft of $5.8 million. The 2013 impairment charges of $21.2 million related to owned E190 aircraft and the write-off of maintenance deposits on leased E190 aircraft.

Fleet Highlights

During 2014, our operational fleet decreased from 258 to 244. The company took delivery of 22 E175 aircraft, permanently parked 15 E140 aircraft, temporarily parked 13 E145 aircraft, sold two E190 aircraft and leased three E145 aircraft and three E190 aircraft.

During 2014, we took delivery of 22 E175 aircraft and removed 28 small regional jets.

In December 2014, we completed the sale of two E190 aircraft and executed an agreement to sell three other E190 aircraft. The sale of these five aircraft will leave us with two owned E190 aircraft and three leased E190 aircraft that are expected to be removed from fixed-fee charter service in August of 2015. We expect to return the three leased aircraft to the lessor in 2015 and the remaining two aircraft are under a firm sales agreement.

Balance Sheet and Liquidity

The Company’s total cash balance decreased $55.1 million to $245.6 million as of Dec. 31, 2014, compared to Dec. 31, 2013. Restricted cash decreased $2.3 million, to $21.7 million, from Dec. 31, 2013, due to the escrow requirements under our fixed-fee charter agreements. The Company’s unrestricted cash balance decreased $52.8 million, to $223.9 million, from Dec. 31, 2013, due primarily to equity investments in new aircraft and the redemption of the $22.3 million and $26.5 million convertible notes on April 7, 2014, and Oct. 28, 2014, respectively. The Company also purchased 212,881 shares of its common stock on the open market, during the third quarter of 2014 for total consideration of $2.1 million. A consolidated balance sheet and summary cash flow statement have been included in the tables section of this release.

The Company’s debt increased to $2.34 billion as of Dec. 31, 2014, compared to $2.17 billion at Dec. 31, 2013, primarily related to the financing of 22, new E175 aircraft purchased for our American Airlines fixed-fee agreement. As of Dec. 31, 2014, approximately 98 percent of our debt is at a fixed interest rate. The Company has significant long-term lease obligations for aircraft that are classified as operating leases and are not reflected as liabilities on the Company’s consolidated balance sheet. At a 6 percent discount factor, the present value of these lease obligations was approximately $0.48 billion and $0.59 billion as of Dec. 31, 2014, and Dec. 31, 2013, respectively.

Corporate Information

Republic Airways Holdings Inc., based in Indianapolis, Indiana, is an airline holding company that owns Republic Airlines, Shuttle America and Chautauqua Airlines, collectively “the airlines.” As of Dec. 31, 2014, the airlines operated a combined fleet of about 245 aircraft and offered scheduled passenger service on more than 1,300 flights daily to approximately 100 cities in the U.S., Canada and the Caribbean through fixed-fee flights operated under our major airline partner brands, including American Eagle, Delta Connection, United Express, and US Airways Express. The Company currently employs about 6,500 aviation professionals.

Copyright Photo: Brian McDonough/AirlinersGallery.com. During 2014 Republic took delivery of 22 Embraer E175 aircraft. Republic Airlines’ Embraer ERJ 170-200LR (ERJ 175) N415YX (msn 17000378) arrives in Washington (Reagan National).

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American takes delivery of the first Embraer 175 to be operated by Compass Airlines

American Airlines Group (Dallas/Fort Worth) yesterday (February 11) took delivery of the first Embraer ERJ 175 (ERJ 170-200LR) (N200NN, msn 17000456) to be operated by newcomer Compass Airlines (Minneapolis/St. Paul). Compass will operate the first 20 aircraft. The remaining 40 ERJ 175s will be operated by American Airlines Group subsidiary Envoy Air (Dallas/Fort Worth).

Compass logo

Embraer issued this statement:

At a ceremony held on February 11 at the Company’s headquarters in São José dos Campos, Embraer delivered to American Airlines the first of 60 firm order E175 jets under the contract signed between the two companies in December 2013. The contract also included options for another 90 E175s, taking the total order potential to 150 aircraft.

American Airlines selected Compass Airlines, a wholly owned subsidiary of Trans States Holdings, to operate the first 20 E175 aircraft under the American Eagle brand. The E175s will be configured with 12 First Class, 20 Main Cabin Extra and 44 Main Cabin seats, for a total of 76 seats.

Copyright Photo: Brian McDonough/AirlinersGallery.com. Republic Airlines is already an Embraer ERJ 175 operator for American Eagle. Republic Airlines’ (2nd) Embraer ERJ 170-200LR (ERJ 175) N407YX (msn 17000370) completes the final approach to Washington’s Reagan National Airport.

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American to drop American Eagle service between Louisville and New York LaGuardia

American Airlines (New York) will drop American Eagle nonstop service between Louisville, Kentucky and New York (LaGuardia) on March 29 due to low demand according to Louisville Business First.

The route is operated by Republic Airlines (2nd) using Embraer ERJ 175s.

Read the full report: CLICK HERE

Copyright Photo: Tony Storck/AirlinersGallery.com. Embraer ERJ 170-200LR (ERJ 175) N421YX (msn 17000386) taxies at Baltimore/Washington.

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Compass Airlines to operate Embraer 175s from Los Angeles for American Airlines

Compass Airlines (Minneapolis/St. Paul) as we previously reported is becoming an American Eagle operator starting on March 29. Per Airline Route, Compass will operate new Embraer ERJ 175s from Los Angeles International Airport for American Airlines (Dallas/Fort Worth) initially to Denver and Houston (Bush Intercontinental) with daily service.

Copyright Photo: Rob Finlayson/AirlinersGallery.com. Republic Airlines also operates the Embraer 175 as an American Eagle carrier. Embraer ERJ 170-200LR (ERJ 175) N422YX (msn 170000387) approaches the runway at the Miami International Airport hub.

American Eagle-Republic Airlines aircraft slide show:

 

Republic Airways Holdings reports third net income of $18.5 million, will sublease 24 Bombardier Q400s to Flybe

Republic Airways Holdings Inc. (Indianapolis) reported its financial results for the third quarter of 2014:

Republic’s pre-tax income from continuing operations for the third quarter of 2014 was $30.5 million compared to $5.4 million for the prior year’s third quarter. In the third quarter of 2013, the Company incurred an impairment charge of $21.2 million. Absent this impairment, Republic’s pre-tax income from continuing operations increased $3.9 million, or 14.7%.

Republic’s net income for the third quarter of 2014 was $18.5 million, or $0.35 per diluted share.

Republic’s pre-tax income from continuing operations for the nine months ending Sept. 30, 2014, was $86.6 million compared to $51.7 million for the same period of 2013. Absent impairment charges in both years and a fair value gain recorded in 2014, Republic’s pre-tax income from continuing operations increased from $72.9 million to $88.1 million, or 20.9%. Republic’s net income for the nine months ending Sept. 30, 2014, was $52.6 million, or $1.01 per diluted share.

During the quarter, the Company announced it would add 50 new E175 aircraft to its Capacity Purchase Agreement with United. The aircraft, which each have a term of 12 years, are expected to be delivered between mid-2015 and mid-2017. The Company and United also agreed to an early wind-down schedule for the Company’s 31 Q400 aircraft currently in operation between early 2015 and late 2016.

As previously report, Republic has entered into a sublease with Flybe Limited, a UK airline, for 24 Q400 aircraft, with deliveries to Flybe coordinated with the removal of the aircraft from United service. The remaining Q400 aircraft will be sold, leased or returned to the lessor after removing them from United service.

Operating Revenue Highlights

Operating revenues increased $11.1 million, or 3.3%, as compared to the third quarter of 2013 to $349.7 million in the third quarter of 2014. Fixed-fee service revenue increased $23.4 million, or 7.3%, to $343.7 million due to increased E175 flying with American Airlines offset by the removal of 15 E140 and 12 E145 aircraft from service. Passenger service revenue decreased $12.6 million because of the removal of E190 aircraft operating under pro-rate agreement with Frontier Airlines.

Operating Expense Highlights

The increase in wages and benefits expenses of $6.7 million, or 7.7%, was primarily due to an increase in E175 operations, an increase in the cost of benefits we provide to our employees and new pilot flight and duty rest regulations.

Fuel expense for the third quarter of 2014 decreased $6.2 million, or 54.9%, as compared to the third quarter of 2013 to $5.1 million primarily due to a 56.9% decrease in gallons consumed related to the elimination of pro-rated flying for Frontier. Fuel expense is primarily attributable to our fixed-fee charter operations and is a pass-through to our customers.

Depreciation and amortization expense for the third quarter of 2014 increased $6.7 million, or 18.1%, as compared to the third quarter of 2013 due primarily to the increase in the E175 fleet.

The other impairment charge of $21.2 million during the third quarter of 2013 was due to an impairment charge on owned E190 aircraft and the write-off of maintenance deposits on leased E190 aircraft.

Fleet Highlights

As of September 30, 2014, Republic operated a fleet of 240 aircraft. Through September, the Company has removed 27 ERJ aircraft from CPA service, and has taken delivery of 17 Embraer E175 aircraft and expects to take delivery of seven additional E175 aircraft during the remainder of 2014. As of September 30, 2014, within its fixed-fee and charter agreements, the Company operated 42 aircraft with 44-50 seats and 198 aircraft with 69-99 seats.

Balance Sheet and Liquidity

The Company’s total cash balance decreased $17.2 million to $283.5 million as of Sept. 30, 2014, compared to Dec. 31, 2013. Restricted cash increased $1.8 million, to $25.8 million, from Dec. 31, 2013, due to the escrow requirements under fixed-fee charter agreements. The Company’s unrestricted cash balance decreased $19.0 million, to $257.7 million, from Dec. 31, 2013, due mainly to equity investments into new aircraft and the redemption of a $22.3 million convertible note. A consolidated balance sheet and summary cash flow statement have been included in the tables section of this release.

During the nine months ended Sept. 30, 2014, the Company purchased 212,881 shares of its common stock on the open market at a weighted average price per share of $9.98 pursuant to the open market purchase plan approved on April 7, 2014, for total consideration of $2.1 million.

The Company’s debt increased to $2.35 billion as of September 30, 2014, compared to $2.17 billion at December 31, 2013, primarily related to the financing of 17 new E175 aircraft purchased for our American Airlines fixed-fee agreement partially offset by the Company’s debt repayments. As of September 30, 2014, about 97% of the Company’s debt is at a fixed interest rate. The Company has significant long-term lease obligations for aircraft that are classified as operating leases and are not reflected as liabilities on the Company’s consolidated balance sheet. At a 6% discount factor, the present value of these lease obligations was about $0.51 billion and $0.59 billion as of Sept. 30, 2014, and Dec. 31, 2013, respectively.

Republic Airways Holdings Inc. is an airline holding company that owns Chautauqua Airlines, Republic Airlines (2nd) and Shuttle America.

As of Sept. 30, 2014, the three airlines operated a combined fleet of about 240 aircraft and offered scheduled passenger service on more than 1,300 flights daily to about 100 cities in the U.S. and Canada through fixed-fee flights operated under our major airline partner brands, including American Eagle, Delta Connection, United Express and US Airways Express.

Copyright Photo: Brian McDonough/AirlinersGallery.com. As previously reported, United Airlines is dropping the Bombardier Q400 services operated by Republic Airlines (2nd). Bombardier DHC-8-402 (Q400) N346NG (msn 4346) arrives at Washington (Reagan National).

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