Category Archives: Republic Airways

Delta to add Atlanta – Hilton Head Island service

Delta Connection-Republic Airline (2nd) Embraer ERJ 100SE N869RW (msn 17000133) DCA (Jay Selman). Image: 403806.

Delta Air Lines is again adding Delta Connection service connecting the Atlanta hub with Hilton Head Island, SC.

The route will be operated daily by Republic Airline (Republic Airways) with Embraer 170 aircraft starting on May 23, 2019 according to Airline Route.

Top Copyright Photo: Delta Connection-Republic Airline (2nd) Embraer ERJ 100SE N869RW (msn 17000133) DCA (Jay Selman). Image: 403806.

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Embraer and Republic Airways firm up an order for 100 E175s

Embraer and Republic Airways, the world’s largest E-Jet operator, have signed a contract for a firm order of 100 E175 jets.

This agreement was announced as a Letter of Intent (LOI) at the Farnborough Airshow, in July.

The firm order has a value of $4.69 billion, based on current list prices, and will be included in Embraer’s 2018 fourth-quarter backlog. Deliveries will start in 2020. The contract also includes purchase rights for an additional 100 E175s, with conversion rights to the E175-E2, bringing the total potential order up to 200 E-Jets.

Republic Airways and Embraer established their partnership in 1999 when one of its former subsidiaries, Chautauqua Airlines, took delivery of its first ERJ 145 in the livery of US Airways Express. Today, Republic Airline operates a fleet of nearly 190 Embraer 170/175 aircraft and provides fixed-fee flights operated under its major airline partner brands of American Eagle, Delta Connection and United Express. Including this new contract, Embraer has sold more than 535 E175s to airlines in North America since January 2013, earning more than 80% of all orders in this 76-seat jet segment.

Image: Embraer

Embraer and Republic Airways sign Letter of Intent for up to 200 E175s

Embraer and Republic Airways, the world’s largest E-Jet operator, announced at the 2018 Farnborough Airshow that they have signed a Letter of Intent (LoI) for a firm order of 100 E175, with the right to convert to E175-E2 aircraft, and purchase rights for an additional 100 E175 aircraft. If all purchase rights are exercised, the contract has a value of up to USD 9.3 billion based on current list prices. This order will be included in Embraer’s backlog as soon as it becomes firm, later this year.

Republic Airways and Embraer established their partnership in 1999 when one of its former subsidiaries, Chautauqua Airlines, took delivery of its first ERJ 145 in the livery of US Airways Express.

Today, Republic Airline operates a fleet of nearly 190 Embraer 170/175 aircraft and provides fixed-fee flights operated under its major airline partner brands of American Eagle, Delta Connection and United Express. Including this new contract, Embraer has sold more than 520 E175s to airlines in North America since January 2013, earning more than 80% of all orders in this 70-76-seat jet segment.

Image: Embraer.

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

Republic Airways Holdings logo

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.”

Teamsters file a lawsuit against Republic Airways, Republic responds

Teamsters Local 357 has filed a lawsuit against Republic Airways Holidays (Indianapolis) charging the company has unilaterally changed the working conditions for its pilots regarding “open time” flying. Here is the full statement:

INTERNATIONAL BROTHERHOOD OF TEAMSTERS LOGO

On July 9, Teamsters Local 357 in Plainfield, Indiana, filed a lawsuit against Republic Airways for unilaterally changing pilots’ working conditions regarding “open time” flying without first agreeing with the union about those changes. More than 2,200 Republic pilots are members of Local 357 and have been seeking a fair contract from the company since 2007.

The lawsuit asserts that the company’s changes are unlawful alterations in the status quo and that they took place even while the items changed were the subject of ongoing bargaining between Local 357 and Republic. The purpose of the lawsuit is to compel Republic’s compliance with its lawful duties under the Railway Labor Act (RLA), the federal law which governs labor relations in the airline industry.

To uphold the principle that Republic can only make changes to the pilots’ agreement through the bargaining process, Local 357 filed a lawsuit in the U.S. District Court in Indianapolis (case number: 1:15-cv-01066-WTL-MJD) seeking injunctive relief, declaratory judgment and other appropriate relief against the company’s unlawful changes in the status quo of pilot contractual rates of pay, rules and working conditions.

“Republic has had eight years to come to an agreement. The pilots are seeking a fair contract that spells out pay, benefits and working conditions, so that the company can’t give something and take it back at their whim. That’s what these hardworking, skilled pilots deserve now—plain and simple,” said Jim Clark, President of Local 357.

Pending the outcome of this lawsuit, the pilots will maintain their normal practice with regard to flying.

Republic Airways Holdings (Indianapolis) has responded to the lawsuit:

Republic Airways Holdings logo

On Thursday, July 9, 2015, the International Brotherhood of Teamsters (IBT) Local 357, 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 completely without merit, and the Company will take appropriate steps to respond. The specific allegations made by IBT Local 357 are incomplete and factually incorrect.

The IBT and the Company are currently in the middle of negotiations supervised by the National Mediation Board for an amended collective bargaining agreement.

The Company stands ready with its current proposal to make a significant investment in our pilots, which is not only fair and equitable, but would place our pilots ahead of their peers in the regional airline industry. This lawsuit is nothing more than an improper tactic by IBT Local 357 to distract our employees and pressure the Company with respect to the negotiations process.

Top Copyright Photo: Formerly operated for Frontier Airlines (2nd), Embraer ERJ 190-100 IGW N163HQ (msn 19000255) is painted in the Republic Airways house livery, but it is operated by Republic Airlines (2nd). The regional jet lines up for the runway at Baltimore/Washington (BWI).

Republic Airways aircraft slide show: AG Airline Slide Show

Republic Airways Holdings reports first quarter net income of $6.4 million

Republic Airways Holdings logo

Republic Airways Holdings Inc. (Republic Airlines 2nd and Shuttle America) (Indianapolis) reported its financial results for the first quarter of 2015.

Republic’s pre-tax income for the first quarter of 2015 was $11.2 million, compared to $22.8 million for the prior year’s first quarter. Republic’s net income for the first quarter of 2015 was $6.4 million, or $0.13 per diluted share. The Company incurred approximately $8.0 million, or $0.09 per diluted share, for charges related to fleet transition expenses and employee severance costs, which are included in other operating expense.

The first quarter of 2015 results also were negatively affected by a reduction in operational reliability. Republic’s operating performance, as measured in block hours, departures and available seat miles was approximately 4 percent lower than planned.

Since March 31, 2014, the Company added 23 E-Jet aircraft and removed 25 ERJ aircraft.

The Company took delivery of the final six E-Jet aircraft for its American Airlines E-Jet agreement, which now totals 47 aircraft. The Company expects to take delivery of 15 additional new E-Jet aircraft in the second half of 2015, which it will operate under its United E-Jet agreement. As of March 31, 2015, the Company operated 41 aircraft with 44-50 seats and 201 aircraft with 69-99 seats under its fixed-fee code-share and charter agreements.

During the first quarter of 2015, Delta Air Lines exercised its right to extend 24 aircraft under the Shuttle America ERJ code-share agreement from May 2016 to May 2021. The Company currently operates 41 aircraft under the agreement with Delta, of which 17 can be removed by Delta with 90 days prior written notice.

Copyright Photo: Brian McDonough/AirlinersGallery.com. Shuttle America will continue to operate for Delta as a Delta Connection carrier until at least May 2021. Embraer ERJ 170-200LR (ERJ 175) N213JQ (msn 17000265) completes its final approach to the runway at Washington’s Reagan National Airport (DCA).

Republic Airways aircraft slide show: AG Airline Slide Show

Delta Connection-Shuttle America aircraft slide show: AG Airline Slide Show

Combined Route Map:

Republic-Shuttle America 5.2015 Route Map

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).

United Express-Republic Airlines (2nd) Aircraft Slide Show: