Tag Archives: Republic Airlines (2nd)

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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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:

American Airlines 2013 logo

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 to go to federal arbitration with its pilots on September 16

Republic Airways Holdings (Indianapolis) has issued this statement regarding its on-going dispute with its pilots for a new contract under federal mediation:

Republic Airways Holdings logo

Republic Airways Holdings Inc. received notification from the National Mediation Board (NMB) requesting the Company meet with the NMB on September 16, 2015, in Washington, D.C. As our case remains under the control of the NMB, the Company intends to fully comply with the request of the mediator.

Although the International Brotherhood of Teamsters has deferred a vote by our Pilots, our proposed contract remains on the table, and we continue to believe the appropriate next step is for the Union to abide by its constitution and let our Pilots vote on their own future. A week ago, we offered to meet with the elected leadership of the Union to discuss their language concerns in the proposed contract. To our dismay, there has been no response from the Union leadership to this invitation as a way to collaboratively bring this process to a close.

Copyright Photo: Brian McDonough/AirlinersGallery.com. Operated by Republic Airlines (2nd), Embraer ERJ 170-100SU N806MD (msn 17000019) completes the final approach to the runway at Washington (Reagan National).

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Republic Airways Holdings reports preliminary 2Q results, will reduce contract flying

Republic Airways Holdings Inc. (Republic Airlines 2nd and Shuttle America) (Indianapolis) has announced its preliminary second quarter 2015 financial results. The company also gave guidance from its perspective on the on-going contract negotiations with its pilots, represented by the IBT. The company also warned of possible operational disruptions (see below – the highlights are mine)

Republic Airways Holdings logo

Preliminary Second Quarter 2015 Results

The Company expects to report second quarter net income of $4.0 to $5.0 million or $0.08 to $0.10 per diluted share, and pretax margins of 2.5% to 3.0% on operating revenues of $338 to $340 million. The second quarter results were negatively impacted by, among other factors, an operation that produced approximately 4% fewer block hours than forecasted due to the ongoing operational disruption caused by regulatory changes and further intensified by our ongoing pilot labor dispute.

National Pilot Shortage and Labor Dispute Continue to Disrupt Operations

The Airline Safety and Federal Aviation Administration (FAA) Extension Act of 2010 directed the FAA to enact significant regulatory changes. The law had several elements, one of which was a change to pilot qualification standards that became effective on August 1, 2013, adding new requirements for first officers to hold an Airline Transport Pilot (ATP) certificate, requiring additional training and a minimum 1,500 hours total flight time as a pilot. Previously, first officers were required to have only a commercial pilot certificate, which required 250 hours of flight time before beginning an FAA approved commercial airline training program. Another element of the law required the FAA to implement more restrictive limits on pilot flight and duty times. The new limits became effective on January 1, 2014 and immediately had the effect of reducing pilot productivity 5-7%, further exacerbating the growing pilot shortage.

The Company’s ongoing labor dispute with the International Brotherhood of Teamsters (IBT), the union which represents the bargaining rights of all Republic pilots, is further amplifying our pilot staffing challenges. The IBT and the Company are currently negotiating under the supervision of the National Mediation Board for an amended collective bargaining agreement. Since April 2015, limited progress has been made in the negotiations due to the IBT’s unrealistic and unsustainable demands. The Company has presented a comprehensive proposal to the IBT that would place our pilots ahead of their peers in the regional airline industry for both compensation and work rules. The lack of a new agreement for our pilots requires the Company to maintain its below market contract and is contributing to increased levels of attrition and an inability for the Company to attract new pilots.

Due to the IBT’s unrealistic bargaining position, the Company cannot predict with any certainty a timeline for resolution. As a result, the Company anticipates continued operational disruption related to the ongoing labor dispute and the growing national pilot labor shortage. The Company has initiated discussions with our mainline partners to take the necessary actions to both temporarily and permanently reduce scheduled flying commitments for the remainder of 2015 and the first half of 2016.

Republic's partners

In light of the anticipated fleet reductions, the Company is rescinding all previously issued financial and operational guidance.

On July 9, 2015, the IBT filed suit against the Company alleging that the Company unilaterally increased compensation for its pilots and new hire pilots 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 Company is exploring all of its options to mitigate any adverse impact from these matters and restore its operational and financial performance to normal levels. The Company has engaged Seabury Group as an advisor to assist in these efforts.

Copyright Photo: Brian McDonough/AirlinersGallery.com. From this statement, it is unclear which mainline partner contracts could be reduced creating opportunities for other carriers. In the case of Shuttle America, it flies Embraer aircraft for both Delta and United. Shuttle America’s Embraer ERJ 170-200LR (ERJ 175) N209JQ (msn 17000258) approaches the runway at Washington’s Reagan National Airport (DCA) in Delta Connection colors.

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

Current Combined Route Map (click to expand):

Republic 7.2015 Route Map

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:


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

American Airlines to expand Embraer 175 operations and routes

American Airlines (Dallas/Fort Worth) is further expanding its American Eagle Embraer 175 operations, routes and schedules from its Los Angeles, Chicago (O’Hare), Miami and New York (JFK) hubs per Airline Route. The new routes will be operated by its various partner airlines.

From Los Angeles, effective September 9, E175 service will be started to El Paso, Fayetteville (Northwest Arkansas), Oklahoma City, Salt Lake City and San Jose, California. Service to Phoenix starts the following day.

From Chicago (O’Hare), starting on March 29, E175 service will be initiated to Madison and Richmond. This will be expanded on May 7 with new E175 service to Austin and on June 4 to Memphis.

From Miami, starting on May 7, E175 service will be offered from the MIA hub to various domestic and Caribbean routes by Republic Airlines (2nd) (Indianapolis), replacing Embraer ERJ 145 flights operated by Envoy Air (Dallas/Fort Worth). On May 7, the new type will be operated to Charleston, South Carolina, Norfolk and North Eleuthera. Starting on June 4, the E175 will be assigned to the Fort-de-France, Greensboro, La Romana, Marsh Harbour, Memphis and Port-au-Prince routes. Finally on August 19, the E175 will be operated to Providenciales (Provo) in the Turks and Caicos Islands.

From New York (JFK), new Embraer E175 aircraft will be assigned to the Norfolk route starting on May 7 followed by Indianapolis route on June 4.

Copyright Photo: Mark Durbin/AirlinersGallery.com. As planned, Compass Airlines (Minneapolis/St. Paul) started the Los Angeles – San Francisco E175 Shuttle on April 13. Officially certified as the Embraer ERJ 170-200LR (ERJ 175), N201NN (msn 17000461) taxies at San Francisco International Airport (SFO).

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