Tag Archives: Republic Airlines

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:

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

Pilots, represented by the Teamsters, and Republic Airways Holdings reach a tentative agreement

Republic Airways Holdings (Indianapolis) and the Teamsters Airline Division have announced they have reached a tentative agreement on a new four-year contract. The more than 2,200 pilots of Republic are represented by Teamsters Local 357 in Plainfield, Indiana and fly for the Republic’s subsidiaries, namely Chautauqua Airlines, Republic Airlines (2nd) and Shuttle America.

The tentative agreement includes increases in pay that will place Republic pilots at or near the top of its regional airline peers. It also includes improvements in work rules, quality of life enhancements and more flexibility in scheduling as well as a significant signing bonus if ratified.

Bryan Bedford, Chairman, President and Chief Executive Officer of Republic Airways offered comment in a press release today.

“At a time when many of our competitors are moving in the opposite direction on pilot compensation, we are thrilled that Republic is able to significantly improve the wages and benefits of the more than 2,200 women and men who safely fly more than 1,300 daily scheduled flights for our major airline partners,” Bedford said.

“This TA reflects the dedication and hard work of the union and the company’s negotiating committees,” said Republic Airways Executive Vice President and Chief Operating Officer Wayne Heller. “We thank the union representatives for their professionalism and commitment in reaching this agreement.”

The agreement will be presented to union members for review and a formal ratification vote, which is expected in March.

Copyright Photo: Keith Burton/AirlinersGallery.com. Shuttle America’s Embraer ERJ 170-200LR (ERJ 175) N202JQ (msn 17000240) operating as a Delta Connection carrier taxies at Boston’s Logan International Airport.

Delta Connection-Shuttle America:

Delta operates its last DC-9 flight with N773NC, expands Boeing 717 operations

Delta Air Lines (Atlanta) yesterday (January 6) as planned and previously announced, operated its last DC-9 flight. The pictured McDonnell Douglas DC-9-51 N773NC (msn 47775) (above) and crew had the honor of operating the very last DC-9 revenue flight as flight DL 2014 between Minneapolis/St. Paul and Atlanta.

With the cold temperatures in both MSP and ATL there was not the traditional water cannon salute.

N773NC was originally delivered to North Central Airlines on October 26, 1978. With the merger with Southern Airways it became Republic Airlines on July 1, 1979. With the Republic merger into Northwest Airlines it took on the red tail on October 1, 1986. Finally it joined the Delta fleet on October 29, 2008 with the Delta-Northwest merger.

Delta operated 13 DC-9-51s in January up to the last flight operated by N773NC. Five DC-9-51s were retired in 2013, six in 2012 and 10 in 2011 according to Airliners.net. One DC-9-51 will be reserved for a museum. Delta is reportedly holding on to two DC-9-51s as spare aircraft for a few days while the newer Boeing 717s replace the DC-9-51s. The other DC-9-51 will end up in the desert where they will be broken up for the parts and the recyclable metal.

Read the full story from the Associated Press: CLICK HERE

Read the full story from Time: CLICK HERE

In other news, Delta is expanding the number of routes served by the new Boeing 717. The airline is introducing the 717 from Atlanta to Augusta (April 1), Chicago (Midway) (April 1), Dallas (Love Field) (October 13), Fayetteville (April 1) and Houston (Bush Intercontinental) (April 1) per Airline Route.

Top Copyright Photo: Bruce Drum/AirlinersGallery.com. McDonnell Douglas DC-9-51 N773NC (msn 47775) faithfully served four airlines right up to the last flight. N773NC arrives at MSP.

Delta Air Lines:

Airline and Aircraft Galleries:

Bottom Copyright Photo: Tony Storck/AirlinersGallery.com. The Boeing 717 started operating to Baltimore/Washington (BWI) yesterday (January 6) with the DC-9-51 retirements. Delta painted the first ex-AirTran Airways Boeing 717 in September 2013, namely the pictured N935AT, which is pictured arriving at BWI. Delta is leasing the entire AirTran fleet of 88 Boeing 717s from Southwest Airlines (Dallas). The new type was introduced on September 19, 2013 between the Atlanta hub and Newark. The DL 717s feature 12 seats in First Class, 15 seats in Economy Comfort and 83 seats in Economy. N935AT was originally delivered to TWA as N402TW on April 11, 2000.

American orders 30 Bombardier CRJ900s to be operated by PSA Airlines and 60 Embraer ERJ 175s

American Airlines (Dallas/Fort Worth), a wholly owned subsidiary of American Airlines Group Inc., announced today that it has signed agreements with Bombardier Inc. and Embraer S.A. to purchase 90 new 76-seat regional jets. Consistent with American’s Plan of Reorganization and Merger Agreement, these aircraft will provide much improved economics for the airline as they will replace smaller, less efficient 50-seat regional aircraft scheduled for retirement.

American has firm orders for 30 Bombardier CRJ900 NextGen aircraft, with options for up to 40 more. The CRJ900s will have 12 First Class, 32 Main Cabin Extra and 32 Main Cabin seats, and the firm order of CRJ900 aircraft will be operated on behalf of American by PSA Airlines, Inc. (2nd) (Dayton), a wholly owned subsidiary of US Airways. American expects to begin taking delivery of the CRJ900s in the second quarter of 2014.

American also has firm orders for 60 Embraer ERJ 175 type aircraft with options for up to 90 more. They will feature 12 First Class, 20 Main Cabin Extra and 44 Main Cabin seats, and American expects to begin taking delivery in the first quarter of 2015. The company will determine which regional carrier will fly the E175s at a later date. Both the CRJ900 and the E175 will fly in the American Eagle livery.

Both the CRJ900 and the E175 are powered by General Electric CF34-8 engines. “GE Aviation has enjoyed a strong relationship with American Airlines and US Airways. We are thrilled to be part of the fleet renewal program underway following the merger,” said Allen Paxson, general manager of the Regional Engines and Services at GE Aviation.

The pilots of PSA Airlines, represented by ALPA, issued this statement on this news:

“The pilots of PSA Airlines, a wholly owned subsidiary of US Airways, welcome the news of American Airlines’ purchase of 30 CRJ900s as an important and exciting step forward for PSA. This firm order fulfills the pledge made to us in a letter of commitment our pilots ratified in September.

“When PSA pilots voted on our new contract in March, and on subsequent agreements, we had to make some difficult decisions. As a result, we preserved core provisions in our contract and improved pilots’ job security here at PSA and career progression to our mainline partner. Today’s announcement of a new aircraft order, coupled with our first scheduled seniority-based interviews at US Airways, prove that our tough decisions have borne fruit.

“While we acknowledge that the planned delivery schedule of these new aircraft is ambitious, the pilots of PSA stand ready to work with our managements to protect and improve our airline and our futures as an integral part of the new American Airlines.”

Copyright Photo: TMK Photography/AirlinersGallery.com. Republic Airlines (2nd) currently is the only Embraer ERJ 175 operator for American Airlines. ERJ 170-200LR (ERJ 175) N401YX (msn 17000363) taxies at Toronto (Pearson).

American Airlines:

US Airways Express-PSA Airlines:

American Eagle-Republic:

Republic Airways Holdings reports on its third quarter performance, will stop operating Embraer 190s for Frontier

Republic Airways Holdings Inc. (Indianapolis) reported diluted earnings per share from continuing operations for the third quarter of 2013 of $0.09 as compared to $0.13 for the same period in the prior year. During the third quarter of 2013, the company recorded a non-cash impairment charge of $21.2 million, $13.0 million after-tax or $0.25 per diluted share, to reduce the carrying value of seven owned Embraer ERJ 190 aircraft and write-off the maintenance deposits on three leased ERJ 190 aircraft. Income from continuing operations was $4.3 million compared to $6.3 million for the same period last year. Excluding the ERJ 190 impairment charge, pre-tax income from continuing operations was $26.6 million, resulting in an adjusted pre-tax margin from continuing operations of 7.9%. Operating revenues totaled $338.6 million, an increase of 0.4%, compared to $337.4 million for the third quarter of 2012.

The company classified its Frontier business as discontinued operations due to the expected sale during the fourth quarter of 2013. Unless otherwise specified, all financial information disclosed in this release is from continuing operations.

On October 1, 2013, the company reported that it had agreed to sell its Frontier business to an affiliate of Indigo Partners LLC (Indigo). Indigo will acquire all the outstanding shares of Frontier Airlines Holdings, Inc. As part of the transaction, under a separate agreement, Republic will assign to Frontier all of Republic’s rights under agreements relating to the Republic’s Airbus A320neo order. The transaction is subject to receipt of certain third-party consents and releases and other customary closing conditions.

On November 6, 2013, Indigo informed the company that it had satisfied or waived certain key conditions to close under the transaction. The company expects the transaction to close later this month.

For additional information on the divestiture of Frontier, please see the company’s separate news release dated October 1, 2013 and a separate filing with the U.S. Securities and Exchange Commission on Form 8-K filed on October 7, 2013.

“The sale of Frontier will allow our management team to re-focus on our core business,” said Republic Airways Chairman, President and Chief Executive Officer Bryan Bedford. “We continue to be excited about the growth opportunities for our fixed-fee business and are focused on providing safe, reliable and low-cost solutions to each of our airline partner brands, including American Eagle, Delta Connection, United Express and US Airways Express,” said Bedford.

Third Quarter Review

Operating Revenue Highlights

Total operating revenues increased $1.2 million, or 0.4%, from the third quarter of 2012 to $338.6 million in the third quarter of 2013. Fixed-fee service revenue increased $51.6 million, or 19.2%, to $320.3 million due to an increase in Bombardier DHC-8-402 (Q400) flying with United Airlines, new fixed-fee ERJ 190 charter flying and new ERJ 175 flying with American Airlines. Passenger service revenue decreased $50.5 million due to a significant reduction in the number of ERJ 190 aircraft operating under our pro-rate agreement with Frontier.

Operating Expense Highlights

Fuel costs for Republic decreased $14.1 million to $11.3 million for the quarter, due to a 4.7 million decrease in gallons consumed due to the reduced ERJ 190 pro-rate operations. The fuel cost per gallon, including into-plane taxes and fees, increased to $3.55 per gallon in the third quarter of 2013, compared to $3.21 per gallon in the prior year’s third quarter. The fuel cost per gallon related to our fixed-fee charter agreement is generally higher than our pro-rate operations with Frontier and is treated as a pass through cost under the agreement.

Landing fees and airport rents decreased $6.6 million to $7.9 million for the quarter. Beginning in June 2013, landing fee expense and the related pass-through reimbursement revenue were lower due to United paying airports directly for its associated landing fee costs.

At September 30, 2013, the company had a fleet of ten ERJ 190 aircraft, of which three were leased and seven were owned. Five of the aircraft operate within the fixed-fee charter agreement and the remainder were operating under the pro-rate agreement with Frontier. The company is working to sell, sublease or otherwise place into fixed-fee charter service the five aircraft operating in pro-rate service. During the third quarter of 2013, we recorded a non-cash impairment charge of $21.2 million to reduce the carrying value of our owned E190 aircraft and expensed the deferred maintenance deposits on the leased ERJ 190 aircraft.

Discontinued Operations

Income from discontinued operations, net of tax, increased 52.8% from $19.5 million in the third quarter of 2012 to $29.8 million in this quarter. The improvement is primarily due to Frontier TRASM increasing 6.6% over the prior period and lower fuel costs. The loss on disposal of discontinued operations, net of tax, is currently estimated to be $47.9 million. This estimate will adjust in future periods based on the actual results of the discontinued operations and the closing date of the transaction.

Fleet Highlights

As of September 30, 2013, Republic operated a fleet of 235 aircraft. Within our fixed-fee commercial and charter agreements, we operated 68 aircraft with 44-50 seats and 162 aircraft with 69-99 seats. In addition, we operated five 99-seat aircraft under the pro-rate agreement with Frontier, down from seventeen 99-seat aircraft operated in pro-rate service during the third quarter of 2012.

During the quarter the company took delivery of nine ERJ 175 aircraft operating under its American Airlines capacity purchase agreement and expects to take delivery of an additional ten ERJ 175 aircraft by the end of 2013.

Balance Sheet and Liquidity

The company’s total cash balance decreased $6.3 million to $224.1 million as of September 30, 2013, compared to December 31, 2012. Restricted cash increased $12.6 million, to $32.2 million, from December 31, 2012 due to the escrow requirements under our fixed-fee charter agreements. The Company’s unrestricted cash balance decreased $18.9 million, to $191.9 million, from December 31, 2012. A condensed consolidated balance sheet and cash flow statement have been included in the tables section of this release.

The Company’s debt increased to $2.00 billion as of September 30, 2013, compared to $1.97 billion at December 31, 2012, primarily related to the financing of ERJ 175 aircraft for the American Airlines fixed-fee agreement. As of September 30, 2013, approximately 95% 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% discount factor, the present value of these lease obligations was approximately $0.5 billion and $0.6 billion as of September 30, 2013, and December 31, 2012, respectively.

At September 30, 2013 the company had assets held for sale of $594.8 million and liabilities held for sale of $517.8 million. The $77.0 million of value in net assets held for sale represents the estimated cash proceeds from the sale of Frontier. These amounts will adjust in future periods based on the actual results of discontinued operations and the closing date of the transaction.

Copyright Photo: TMK Photography/AirlinersGallery.com. Republic Airlines (2nd) is now only operating five 99-seat Embraer ERJ 190s for Frontier Airlines (down from 17) under the pro-rate agreement. Once the sale of Frontier to Indigo is completed, Republic will relocate these five aircraft to other areas. Frontier will only operate Airbus aircraft under Indigo. The pictured Republic Airlines (2nd) Embraer ERJ 190-100 IGW N164HQ (msn 19000275) with a Hummingbird on the tail taxies at Toronto (Pearson).

Frontier Airlines-Republic Airlines (2nd):

Republic Airways Holdings extends the deadline for the sale of Frontier Airlines

Republic Airways Holdings (Indianapolis) has announced that it has agreed to a 48-hour extension of exclusivity of the sale process for Frontier Airlines (2nd) (Denver).

“Indigo Partners informed us they have made good progress but have not been able to resolve all the conditions to close the transaction,” said Republic Airways Chairman, President and CEO Bryan Bedford. “They requested and we agreed to extend the deadline by 48 hours.”

Republic Airways Holdings is an airline holding company that owns Chautauqua Airlines, Frontier Airlines, Republic Airlines and Shuttle America.

Indigo Partners issued the following statement on the status of its pending acquisition of Frontier Airlines from Republic Airways Holdings:

“Indigo Partners has informed Republic Airways that its planned acquisition of Frontier Airlines will move forward. Major conditions, including agreements with FAPAInvest and Barclaycard are satisfied, as are other commercial and business arrangements. An agreement has not been reached with the Association of Flight Attendants (AFA); however, Indigo has informed Republic that it will waive that condition. The transaction is expected to be finalized later this month, subject to receipt of certain regulatory approvals and other customary closing conditions.”

William A. Franke, managing partner at Indigo Partners said, “We are pleased about the progress we have made to resolve major issues and move this acquisition toward closing. We look forward to completing the transaction and continuing to extend Frontier’s reach and service as a leading, nationwide ultra-low cost carrier (ULCC).”

Copyright Photo: Ton Jochems/AirlinersGallery.com. Airbus A319-111 N922FR (msn 2012) with the Red Fox exits the runway for the gate at Los Angeles International Airport.

Frontier Airlines (2nd):

Republic’s three flight attendants groups approve the new contract, may sell Frontier Airlines in the third quarter

Republic Airways Inc. (Republic Airways Holdings) (Indianapolis) has announced that flight attendants for its three regional carriers have approved a new five-year labor contract. The ratification vote concluded on July 29 with flight attendants from Chautauqua Airlines, Republic Airlines (2nd) and Shuttle America voting in favor of the agreement.

The new contract includes increases in pay, improvements in quality of life and more flexibility in scheduling. The new agreement becomes amendable on July 29, 2018.

In other news, Republic has entered into a preliminary agreement with an undisclosed potential buyer of Frontier Airlines (2nd) (Denver). Should the deal be finalized, the sale could be closed in the third quarter according to CEO Bryan Bedford.

Read the full story from the Denver Post: CLICK HERE

Copyright Photo: TMK Photography/AirlinersGallery.com. Set against the moon, Republic Airlines’ (2nd) Embraer ERJ 190-100 IGW N164HQ (msn 19000275) (Hummingbird) arrives at Toronto (Pearson). The 99-seat Republic ERJ 190s are expected to leave the Frontier contract in the third quarter of 2013.

Frontier Airlines (2nd)-Republic Airlines (2nd):

Republic Airways Holdings’ second quarter net income increases 23% to $24.6 million, Frontier Airlines reports pre-tax 2Q income of $13.7 million

Republic Airways Holdings Inc. (Republic Airlines 2nd) (Indianapolis) reported diluted earnings per share of $0.46, which is a 15.0% increase from the $0.40 per diluted share result in the second quarter of 2012. Net income increased 23.0% to $24.6 million for the quarter ended June 30, 2013, compared to net income of $20.0 million for the same period last year. Operating revenues totaled $664.4 million, a decrease of 8.7%, compared to $728.1 million for the second quarter of 2012.

“We are pleased to report improved financial results for the second quarter, driven primarily by the year over year improvement in our small regional jet operations at Chautauqua,” said Republic Chairman, President and CEO Bryan Bedford. “Our process to sell Frontier continues and I am very pleased that we were able to reach tentative labor agreements with both our Flight Dispatchers and Flight Attendants, which remain subject to membership ratification. I am thankful for the continued professionalism and dedication of my 10,000 co-workers on behalf of our passengers.”

Republic Segment Summary

Republic’s pre-tax income improved 45.8% to $27.7 million from $19.0 million in the prior year’s second quarter, due mainly to the redeployment of idled 50-seat aircraft and the successful completion of our Chautauqua restructuring efforts in late 2012.

Total Republic revenues decreased $20.6 million, or 5.8%, from the second quarter of 2012 to $336.8 million in the second quarter of 2013. Fixed-fee service revenue increased $34.9 million, or 12.4%, to $316.9 million, despite the removal of fuel expense and related reimbursement on our United E170 fixed-fee agreement, which accounted for $25.1 million of revenues in the prior year’s second quarter. The majority of the increase in fixed-fee revenues relates to Republic’s Q400 agreement with United that began in the second half of 2012 and Republic’s E190 charter agreement, which began in January 2013. Republic passenger service revenue decreased $56.1 million due to a reduction of pro-rate operations with Frontier, as aircraft previously operating in pro-rate service were either transitioned to other fixed-fee agreements or sold.

Fuel costs for Republic decreased $42.3 million to $12.1 million for the quarter, due mainly to the removal of fuel expense on our United agreement as noted above. The fuel cost per gallon, including into-plane taxes and fees, increased to $3.34 per gallon in the second quarter of 2013, compared to $3.26 per gallon in the prior year’s second quarter. The fuel cost per gallon related to our fixed-fee charter agreement is generally higher than our pro-rate operations with Frontier and is treated as a pass through cost under the agreement.

As of June 30, 2013, Republic operated a fleet of 232 aircraft. Within our fixed-fee commercial and charter agreements, Republic operated 70 aircraft with 44-50 seats and 157 aircraft with 69-99 seats. In addition, Republic operated five 99-seat aircraft under the pro-rate agreement with Frontier, down from seventeen, 99-seat aircraft operated in pro-rate service during the second quarter of 2012.

The Company expects to take delivery of 18 Embraer ERJ 175 aircraft to operate under its American capacity purchase agreement by the end of 2013. Additionally, the Company expects to place into service the final six Q400 aircraft under its United capacity purchase agreement over the next two quarters.

Frontier Segment Summary

For the quarter ended June 30, 2013, Frontier Airlines (2nd) (Denver) posted pre-tax income of $13.7 million, which is down slightly from $14.1 million of pre-tax income for the quarter ended June 30, 2012.

Frontier’s capacity, as measured by available seat miles (ASMs), was down 10.1% from the prior year’s second quarter, as a result of operating fewer Airbus aircraft. Frontier’s total revenues decreased 11.6% to $327.6 million for the quarter, compared to $370.7 million for the same period in 2012. Total revenue per ASM (TRASM) decreased 1.6% to 11.98 cents in the second quarter of 2013 from 12.18 cents in the second quarter of 2012.

Fuel costs decreased from the prior year’s second quarter by $22.6 million to $114.2 million for the quarter. The fuel cost per gallon, including into-plane taxes and fees, decreased to $3.14 per gallon in the second quarter of 2013, compared to $3.35 per gallon in the prior year’s second quarter. The second quarter of 2013 results included a loss on fuel hedges of $1.7 million, or $0.05 per gallon.

The operating unit cost for Frontier, excluding fuel, was 7.27 cents per ASM for the second quarter of 2013, a 1.3% increase compared to 7.18 cents per ASM for the same quarter of 2012.

As of June 30, 2013, Frontier operated 52 Airbus aircraft, compared to 58 Airbus aircraft as of June 30, 2012. All six aircraft removed were returned to lessors.

Recent Business Developments

On June 17, 2013, the Company announced it had reached a tentative agreement (TA) on a new five-year contract with the Transportation Workers Union (TWU) Local 540 Dispatchers. This TA is currently being voted on by union membership and we expect the voting results on August 1, 2013.

On June 24, 2013, the Company announced it had reached a TA on a new five-year contract with the International Brotherhood of Teamsters (IBT) Local 135 Flight Attendants. This TA is currently being voted on by union membership and we expect the voting results on July 29, 2013.

On July 15, 2013, the Company announced that it had entered into an agreement with an affiliate of the Brazilian Development Bank (BNDES) for the financing of 47 Embraer E175 aircraft. These aircraft will provide service under the terms of the capacity purchase agreement with American Airlines announced in January. The first aircraft was delivered on July 15, 2013, and is scheduled to go into service with American on August 1, 2013.

Balance Sheet and Liquidity

The Company’s total cash balance increased $44.8 million to $439.1 million as of June 30, 2013, compared to December 31, 2012. Restricted cash increased $53.2 million, to $200.3 million, from December 31, 2012. The Company’s unrestricted cash balance decreased $8.4 million, to $238.8 million, from December 31, 2012. A condensed consolidated balance sheet and cash flow statement have been included in the tables section of this release.

The Company’s debt decreased to $1.98 billion as of June 30, 2013, compared to $2.12 billion at December 31, 2012. As of June 30, 2013, approximately 90% of the 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 approximately $0.9 billion and $1.0 billion as of June 30, 2013, and December 31, 2012, respectively.

Copyright Photo: Bruce Drum/AirlinersGallery.com. Republic Airways (Republic Airlines 2nd) Embraer ERJ 170-100SU N821MD (msn 17000042) departs from Fort Lauderdale-Hollywood International Airport.

Frontier Airlines (2nd):

Republic Airways (Republic Airlines 2nd):

Republic Airways Holdings reaches a tentative agreement with its flight attendants

Republic Airways Holdings Inc. (Indianapolis) has announced that it has reached a tentative agreement (TA) on a new five-year contract with the International Brotherhood of Teamsters (IBT) Local 135 Flight Attendants. Local 135 represents over 2,000 Flight Attendants for Chautauqua Airlines, Republic Airlines (2nd) and Shuttle America.

The proposed contract includes increases in pay, improvements in quality of life and more flexibility in scheduling. The TA still must be presented to union members for review and a ratification vote, which is expected to be held in July.

Top Copyright Photo: Tony Storck/AirlinersGallery.com (please click on the photo for the full size view). Shuttle America’s Embraer ERJ 170-200LR (ERJ 175) N204JQ (msn 17000243) operating as a Delta Connection carrier arrives at Washington (Reagan National).

Delta Connection-Shuttle America:

United Express-Shuttle America:

Bottom Copyright Photo: Jay Selman/AirlinersGallery.com. Shuttle America’s Embraer ERJ 170-100SE N639RW (msn 17000057) prepares to land at Charlotte while operating for United Airlines as an United Express carrier.

Combined Route Map (please click on the map for the full-size view):

Republic Airlines to operate 53 Embraer 175s for American Airlines

Republic Airways Holdings Inc. (Indianapolis) today announced that it has reached an agreement with American Airlines to operate 53 Embraer ERJ 175 aircraft under the American Eagle brand. The Capacity Purchase Agreement (CPA) will be operated by the Company’s Republic Airlines (2nd) (Indianapolis) subsidiary, with service expected to start in June of 2013. The CPA is subject to approval by the Bankruptcy Court in the American Airlines bankruptcy proceedings.

Republic also signed an agreement with Embraer to purchase 47 new aircraft and lease a previously owned Embraer ERJ 175 jet aircraft, including the first deliveries of Embraer’s enhanced fuel performance aircraft. In addition, the Company will acquire five previously owned ERJ 175s from a third party.

The aircraft, which will seat 76 passengers in a two-class cabin, are expected to be phased into operation at approximately two to three aircraft per month beginning in mid-2013 through the first quarter of 2015. Each aircraft will operate under the CPA for 12 years from its in-service date, extending the term of the agreement into 2027.

Republic’s contract with Embraer also includes an option with delivery positions exercisable beginning in 2015, for the purchase of an additional 47 aircraft.

Copyright Photo: Brian McDonough. Wearing the Republic Airways house colors, Republic Airlines’ (2nd) Embraer ERJ 170-100SE N866RW (msn 17000129) prepares to land at Washington (Reagan National).

Subsidiary Chautauqua Airlines currently operates 15 Embraer ERJ 140 regional jets as an American Connection carrier. The ERJ 140s will be retired as well as the American Connection name.

Route Map for all of Republic Airways Holdings’ contract flying by all of its subsidiaries: