Category Archives: Republic Airways

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.”

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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:

 

Chautauqua to phase out its Embraer ERJ 140s, parent Republic will not cancel its Bombardier CSeries order

Chautauqua Airlines (Indianapolis) is phasing out its Embraer ERJ 140 regional jets it operates for American Airlines. According to ch-aviation, the company will operate the last ERJ 140 flight for AA on August 18. Pilots are being switched to the new Embraer 175s which will be operate under the American Eagle brand.

Republic Airways Holdings Inc. (Indianapolis) is an airline holding company that owns Chautauqua Airlines, Republic Airlines and Shuttle America. The airlines operate a combined fleet of about 250 aircraft and offer scheduled passenger service on about 1,300 flights daily to about 100 cities in the U.S., Canada and the Bahamas through fixed-fee flights operated under our major airline partner brands, including American Eagle, Delta Connection, United Express, and US Airways Express.

In other news, Republic Airways Holdings CEO Bryan Bedford has stated the company has no intention of canceling its order for the new, but delayed, Bombardier CSeries aircraft. Republic has 40 CS300s on order. Republic has made the decision to phase out its 50-seat aircraft and will concentrate on the Embraer 170 and 175 series of aircraft and the Bombardier Q400 besides the the CS300s on order according to this interview in the Financial Post.

Read the full article: CLICK HERE

Copyright Photo: Bruce Drum/AirlinersGallery.com. Embraer ERJ 140LR (EMB-1135KL) N376SK (msn 145578) arrives in Minneapolis/St. Paul.

American Connection-Chautauqua: AG Slide Show

Route Map of the Republic Airways’ airlines:

Republic-Chautauqua-Shuttle America 5.2014 Route Map

 

 

Republic Airways Holdings reports first quarter net profit of $14 million

Republic Airways Holdings (Indianapolis) reported financial results for the first quarter of 2014. Key points include:

Republic’s pre-tax income from continuing operations was $22.8 million, or $0.42 per diluted share, an 18.1% increase over the March 2013 quarter. As of Dec. 31, 2013, Republic had a significant amount of federal net operating loss carry forwards and does not anticipate paying significant federal taxes for the next several years.

Republic’s net income for the March 2014 quarter was $14.0 million, or $0.26 per diluted share. This is a $13.7 million increase from the prior year. The March 2013 quarter was negatively impacted by $11.1 million of losses from discontinued operations at Frontier Airlines.

Republic canceled more than 12,400 flights during the first quarter of 2014, primarily because of severe weather in January and February of 2014. That was a 145% increase from the number of canceled flights compared to the first quarter of 2013. These cancellations negatively impacted the pre-tax financial results by about $7.0 million during the first quarter of 2014.

On February 11, 2014, Republic announced the early termination of its 44 to 50 seat fixed-fee agreements with United Airlines and American Airlines, which were scheduled to terminate in 2014. These agreements wind-down beginning in March 2014 through August 2014 and will result in the indefinite grounding of 27 small jet aircraft.

In the first quarter of 2014, Republic recorded an impairment of its owned Embraer ERJ 140 aircraft of $19.9 million and an $18.4 million gain on its Chautauqua restructuring asset. The Company also sold one Embraer ERJ 145 aircraft for a book gain of $1.8 million during the quarter. The net of these three items improved pre-tax earnings by $0.3 million.

On April 4, 2014, Republic announced that members of the International Brotherhood of Teamsters (IBT) Local 357 failed to ratify a proposed four-year pilot labor agreement. The agreement would have significantly improved pay and work rules for our pilots.

On April 7, 2014, Republic’s Board of Directors authorized management to utilize up to $75 million of unrestricted cash to buy back common shares and/or early retire convertible debt during the next 12 months. Under the $75 million authorization, Republic may repurchase up to $50 million of common shares and early retire up to $50 million of convertible notes, or any combination thereof.

On April 7, 2014, Republic redeemed a $22.3 million convertible note, leaving $52.7 million remaining on the share repurchase and convertible debt retirement authorization. This will reduce the Company’s dilutive share count by about 2.2 million shares going forward.

“I am pleased we were able to report improved first quarter financial results despite the most severe weather events in a single quarter I can recall in my 27 years of experience in the airline industry. Our results demonstrate the stability and strength within our core fixed-fee business,” said Republic Airways Holdings Chairman, President and CEO Bryan Bedford. “We are committed to our guiding principles and strengthening our brand reliability and product quality for our partners, shareholders and employees,” Bedford said.

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

Copyright Photo: Bruce Drum/AirlinersGallery.com. Embraer ERJ 170-100SU N806MD (msn 170000019), as a spare aircraft, completes its Republic Airlines (2nd) flight into Charlotte.

Combined Route Map:

Republic Airways Holdings 5.2014 Route Map

Republic Airways (Republic Airlines): AG Slide Show

Republic Airways Holdings’ pilots reject the proposed tentative contract

Republic Airways Holdings‘ (Indianapolis) over 2,200 pilots of subsidiaries Chautauqua Airlines, Republic Airlines (2nd) and Shuttle America have rejected by a 85-15 percent vote the tentative agreement with management.

According to ALPA, “While their Tentative Agreement contained some substantial contract improvements, including pay increases, it did not meet their pilots’ demands. After 7 years of negotiations, the pilots clearly felt that they deserved pay and benefits commensurate with their positions as professional air line pilots and the value they bring to the company. Also of note is that the negotiated TA only touched four areas of the contract and did not address many areas of pilot interest.”

In addition, Teamsters Local 357 Executive Board issued this statement to the pilots: “In rejecting the TA, the pilot group has stated clearly its demand that Republic must do better in establishing acceptable terms for a new agreement. The Company cannot ignore the pilots’ demands without risking the continued deterioration of its operation which drove it back to the bargaining table last year.”

In return, the company, Republic Airways Holdings issued this statement:

Republic Airways Holdings announced on April 4 that members of the International Brotherhood of Teamsters (IBT) Local 357 failed to ratify a proposed four-year pilot labor agreement.

IBT Local 357 represents more than 2,200 pilots for Republic’s sister companies Chautauqua Airlines, Republic Airlines and Shuttle America.

“We are extremely disappointed that the union’s membership failed to ratify the tentative agreement that was reached in mid-February. At a time when other regional airlines have been negotiating concessionary agreements for their pilots, we were able to reach an industry-leading contract that significantly improved pay and work rules for our pilots to vote upon,” said Republic Airways Executive Vice President and Chief Operating Officer Wayne Heller. “Despite the outcome of this vote, Republic remains committed to providing the safest, most reliable flight service for our legacy airline partners.”

The proposed contract included increases in pay that would have placed Republic pilots at or near the top of its regional airline peers. It also included improvements in quality of life enhancements and more flexibility in scheduling, as well as a significant signing bonus if it had been ratified.

Republic Airways Chairman, President and Chief Executive Officer Bryan Bedford said, “I am disappointed with the results of the IBT Pilot vote as I believe that the Tentative Agreement we reached with the IBT was in the best interest of our Pilots and an important step forward for our Company. We will work with the IBT to determine our next steps.”

Republic Airways Holdings, based in Indianapolis, Indiana, is an airline holding company that owns Chautauqua Airlines, Republic Airlines and Shuttle America, collectively “the airlines.” The airlines operate a combined fleet of about 250 aircraft and offer scheduled passenger service on over 1,350 flights daily to about 110 cities in the U.S., Canada and the Bahamas through fixed-fee flights operated under our major airline partner brands, including American Eagle, Delta Connection, United Express, and US Airways Express. The airlines currently employ about 6,300 aviation professionals.

As a result, Republic has delayed a decision on its order for 40 Bombardier CSeries aircraft. The order is not cancelled but it is pending according to Bedford after this vote.

Copyright Photo: Tony Storck/AirlinersGallery.com. Formerly operated in Frontier Airlines colors, Embraer ERJ 190-100 IGW N163HQ (msn 19000255) is now painted in the Republic Airways house colors and operated by Republic Airlines (2nd).

Republic Airways-Republic Airlines: AG Slide Show

Republic Airways Holdings logo

The combined route map of Chautauqua Airlines, Republic Airlines (2nd) and Shuttle America:

Chautauqua-Republic-Shuttle America 4.2014 Route Map