Category Archives: Republic Airlines (2nd)

Teamster pilots ratify contract extension at Republic Airline

American Eagle Airlines (2nd)-Republic Airlines (2nd) Embraer ERJ 170-200LR (ERJ 175) N103HQ (msn 17000159) PHL (Jay Selman). Image: 403115.

Republic Airline pilots who are members of Teamsters Local 357 have ratified a contract extension of their 2015 collective bargaining agreement.

The extension includes immediate pay raises retroactive to January 1, 2018. Additional raises over the next 23 months provide for a total wage increase of 14 to 28 percent, dependent upon length of service. In addition to the wage increase, improvements were made to vacation accruals and company retirement contributions.

The agreement was reached well ahead of an October 2018 amendable date. The new amendable date is January 1, 2021.

“We’re pleased to have negotiated an extension that values the service Teamster pilots at Republic provide. Reaching an agreement well ahead of the original amendable date is consistent with the goal of shortened but more frequent negotiating cycles. The union leadership feels that incremental improvements have a more immediate effect, and also have the benefit that the aggregate increase will be larger than a single comprehensive agreement achieved over the same time period. This extension was ratified by 51 percent of those voting, with 85 percent participation. Those numbers suggest that this new approach will have to be proven successful to the membership through continuous improvements in the future,” said Josh LeBlanc, President of Local 357.

Teamsters Local 357, based in Plainfield, Indiana, represents over 2,000 pilots flying for Republic.

Copyright Photo: American Eagle Airlines (2nd)-Republic Airlines (2nd) Embraer ERJ 170-200LR (ERJ 175) N103HQ (msn 17000159) PHL (Jay Selman). Image: 403115.

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American to expand Washington Reagan National operations next spring

American Eagle (2nd)-PSA Airlines (2nd) Bombardier CRJ900 (CL-600-2D24) N574NN (msn 15365) CLT (Jay Selman). Image: 403063.

American Airlines is planning to expand operations at Washington’s Reagan National Airport (DCA) with three new American Eagle routes. Republic Airlines will add daily DCA – Little Rock E175 jet service on April 3, 2018 per Airline Route.

Additionally PSA Airlines will add the DCA – Montgomery (CRJ200) route on June 7, 2018 and daily DCA – Tallahassee (CRJ900) service on February 15, 2018.

AA is also converting weekend service from DCA to both Destin/Fort Walton Beach and Myrtle Beach to daily service for the summer 2018 season.

Copyright Photo: American Eagle (2nd)-PSA Airlines (2nd) Bombardier CRJ900 (CL-600-2D24) N574NN (msn 15365) CLT (Jay Selman). Image: 403063.

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Republic Airways Holdings and American Airlines reach a long term agreement, Shuttle America to be phased out

American Eagle Airlines (2nd)-Republic Airlines (2nd) Embraer ERJ 170-200LR (ERJ 175) N137HQ (msn 17000231) CLT (Jay Selman). Image: 402600.

Republic Airways Holdings Inc. has announced it has reached an agreement with American Airlines that secures a long-term relationship between the two airlines and has also filed a motion for its approval in the United States Bankruptcy Court for the Southern District of New York.

The amended agreement provides for:

  • a single capacity purchase agreement that prescribes the flying commitments and obligations of Republic and American related to the legacy American and US Airways capacity purchase agreements;
  • permitting the removal of certain aircraft, an extension in duration of Republic’s flying for certain aircraft for American, which will facilitate Republic’s ability to favorably restructure the remaining aircraft financing obligations, and allowing for the potential restoration of service of a certain number of aircraft, subject to Republic’s ability to secure suitable financing of the aircraft;
  • facilitates Republic’s transition to a single air carrier operating certificate by reconfiguring 80-seat aircraft to 76-seat configuration (Embraer 175s).

The parties anticipate that the motion will be heard before the Honorable Sean H. Lane on September 21, 2016. The new agreement will become effective in accordance with the terms of the Amendment following issuance of the approval order by the court.

Copyright Photo: The Embraer 170s and 175s are gradually being transferred from Shuttle America to sister airline Republic Airlines (2nd). American Eagle Airlines (2nd)-Republic Airlines (2nd) Embraer ERJ 170-200LR (ERJ 175) N137HQ (msn 17000231) CLT (Jay Selman). Image: 402600.

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Republic Airways pilots ratify a new three-year contract

Republic Airways Holdings Inc. (Republic Airlines 2nd and Shuttle America) (Indianapolis) has announced that the International Brotherhood of Teamsters’ (IBT) Local 357, which represent the approximately 2,100 pilots of Republic, have voted by a margin of 76% to ratify a new three-year contract, with approximately 85% of the eligible pilots voting.

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The three-year agreement becomes effective on or about November 1. The agreement invests approximately $50 million a year on average over the three-year duration of the new agreement, including both the ratification bonus and the anniversary bonus. The new agreement includes significant improvements in work rules and pilot quality of life. Additionally, it establishes pay rates that recognize Republic’s pilots as leaders in the regional airline industry, including a transformational $40/hr first year new hire rate.

Copyright Photo: Tony Storck/AirlinersGallery.com. Embraer ERJ 170-200LR (ERJ 175) N135HQ (msn 17000224) of Republic Airlines operating as an American Eagle carrier arrives at Baltimore-Washington (BWI).

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American to add three routes from New York LaGuardia, returns to normal operations after computer problems

American Airlines (Dallas/Fort Worth) on January 5, 2016 is adding daily American Eagle Embraer 175 regional jet service from New York (LaGuardia) to Cincinnati and Indianapolis. The carrier is also resuming service from LGA to Minneapolis/St. Paul on the same date per Airline Route.

In other news, AA is inserting the new Airbus A321-200 on the Miami – Guayaquil route starting on June 2, 2016.

Finally American today is returning to normal operations after “computer issues” delayed departures at three hubs yesterday. The airline issued this statement on Twitter:

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We’ve resolved connectivity issues that caused challenges at DFW, ORD and MIA. We’re sorry and will have you on your way soon.

Copyright Photo: Brian McDonough/AirlinersGallery.com. Republic Airlines’ (2nd) Embraer ERJ 170-200LR (ERJ 175) N405YX (msn 17000368) approaches the runway at Dulles International Airport.

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Republic Airways Holdings presents its “Last, Best and Final Offer” to its pilots

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Republic Airways Holdings Inc. (Indianapolis) has presented its “Last, Best and Final Offer” to the International Brotherhood of Teamsters Local 357 representing its almost 2,100 pilots.

The Company posted the full text of the proposed three-year agreement, along with supporting material, to a dedicated website, www.myrjetcontract.com.

“Our Pilots deserve an industry-leading contract and this proposal meets that standard,” said Matt Koscal, Republic vice president for Human Resources. “It provides our Pilots improved job protection, compensation and quality of life for them and their families. It starts us on the path back to our tradition of operational excellence and a competitive position in the marketplace. We’re asking the Union to put this contract to a vote and asking our Pilots to read it. It’s time to move forward.”

Republic Airways Holdings’ second quarter net income drops to $4.3 million due to “operational reliability”

Republic Airways Holdings Inc. (Republic Airlines and Shuttle America) (Indianapolis) reported its financial and operational results for the second quarter of 2015.

Republic Airways Holdings logo

Republic’s pre-tax income for the second quarter of 2015 was $9.1 million, compared to $33.3 million for the prior year’s second quarter. Republic’s net income for the second quarter of 2015 was $4.3 million, or $0.08 per diluted share compared to prior year net income of $20.1 million or $0.38 per diluted share. The effective tax rate of 52.7% for the quarter was higher than the normalized tax rate, primarily due to the impact of miscellaneous non-deductible expenses.

The second quarter 2015 financial results were negatively impacted by a significant reduction in operational reliability. The Company’s controllable completion factor and operating revenues were significantly lower than expected due to a high number of pilot related cancellations as a result of the growing national pilot labor shortage and our on-going labor dispute with International Brotherhood of Teamsters (IBT).

The second quarter results were also negatively impacted by fleet transition costs and idled aircraft costs totaling $10.8 million associated with our removal of E190 and Q400 aircraft and surplus E145 aircraft.

Recent Business Developments

On July 9, 2015, the IBT, representing Republic’s pilots, filed suit against the Company alleging that the Company unilaterally increased compensation for pilots and new hires in violation of the Railway Labor Act. We believe the suit is without merit, and the Company has filed a motion to dismiss. The motion is currently pending.

On July 24, 2015, the Company announced the engagement of Seabury Group as its advisor to restructure the Company’s operational and financial commitments and explore all options to maintain the Company’s enterprise value. The Company has initiated discussions with its CPA partners to further reduce flying schedules during the second half of 2015 and 2016. In light of the anticipated fleet reductions, the Company rescinded all previously issued financial and operational guidance on July 24, 2015.

On August 6, 2015, the Company received notice from the National Mediation Board scheduling the next mediated session on August 20, 2015, with the IBT National Airline Division, IBT Local 357, and the Company.

Concerning fleet news, Republic reported:

Operating aircraft at period end:

44-50 seats  *1                        41 in service on June 30, 2015 versus 45  a year ago (8.9% drop)
69-99 seats  *2                     201 in service on June 30, 2015 versus 192 a year ago  (4.7% increase)

*1 Excludes 11 owned E140 aircraft that were abandoned and four leased E140 aircraft that were permanently parked, seven owned and nine leased E145 aircraft that were temporarily parked, and one owned E135 aircraft and eight owned E145 aircraft that are leased to other operators, as of June 30, 2015. Excludes 11 owned E140 aircraft that were abandoned, 11 leased E145 aircraft and two owned E145 aircraft that were temporarily parked as of June 30, 2014.

*2 Excludes five leased Q400 aircraft, of which; three were temporarily parked and two that were transitioned to Flybe and three owned E170 aircraft that are leased to other operators, as of June 30, 2015. Excludes two temporarily parked E190 aircraft as of June 30, 2014.

Read the full report: CLICK HERE

Copyright Photo: Ken Petersen/AirlinersGallery.com. The Bombardier DHC-8-402s (Q400s) operated by Republic Airlines (2nd) as an United Express carrier are gradually being phased out. The last of the type is expected to be removed from the United CPA contract in September 2016. However this come sooner with the on-going pilot dispute and the shortage of pilots. The company is discussing ways it can mitigate the shortage. DHC-8-402 (Q400) N336NG (msn 4336) arrives at Raleigh-Durham.

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