Tag Archives: Republic Airways Holdings

Republic Airways Holdings reports net income of $64.3 million for 2014

Republic Airways Holdings Inc. (Republic Airlines and Shuttle America) (Indianapolis) has reported its financial results for the fourth quarter and full year ended December 31, 2014. The company reported net income of $64.3 million for 2014, a significant increase from its net income of $26.7 million in 2013.

As planned, Chautauqua Airlines ended operations on December 31, 2014 and was rolled into Shuttle America as previously reported.

The company issued this report:

Republic’s pre-tax income excluding special items, for the fourth quarter of 2014 was $32.1 million, an 8.4 percent increase over the fourth quarter or 2013. Republic’s adjusted income from continuing operations for the fourth quarter of 2014 was $19.8 million, or $0.39 per diluted share, and its adjusted pre-tax margin was 9.3 percent.

For the full year of 2014, Republic’s pre-tax income, excluding special items, was $120.2 million, a $17.7 million increase over 2013. Republic’s adjusted income from continuing operations for 2014 was $73.4 million, or $1.40 per diluted share, with an adjusted pre-tax margin of 8.7 percent.

On a GAAP basis, including special items, Republic’s fourth quarter 2014 pre-tax loss was $1.4 million, pre-tax margin was -0.4 percent and income from continuing operations was $11.7 million, or $0.23 per diluted share. On a GAAP basis, including special items, Republic’s 2014 pre-tax income was $85.2 million, pre-tax margin was 6.2 percent and income from continuing operations was $64.3 million, or $1.24 per diluted share.

On January 1, 2015, Republic completed its consolidation of all Chautauqua Airlines operations onto the Shuttle America operating certificate. All operating aircraft and related employees are now transferred to Shuttle America’s operation. Republic hopes to sell the remaining Chautauqua Airlines entity and related assets during the first half of 2015.

During the fourth quarter of 2014, Republic extended the service terms of aircraft under its fixed-fee capacity purchase agreements with US Airways, Inc. and Delta Air Lines, Inc. Republic also agreed to operate an additional nine E170 aircraft for Delta Air Lines, Inc.

“We took some significant steps in 2014 in our effort to simplify and streamline our business,” said Republic Airways Holdings Chairman, President and CEO Bryan Bedford. “While this simplification strategy results in near-term transition expenses, such as the fleet impairment charge we took this quarter, the actions that we’ve taken in 2014 and that we intend to take in 2015 are key to the future success of our airline.”

The impairment and other charges in 2014 were due to impairment and other charges on owned E140 aircraft which were abandoned of $19.9 million; owned E190 aircraft which are in the process of being sold of $14.4 million; owned Q400 aircraft which are scheduled to come out of service in the third quarter of 2016 of $13.3 million, and a loss on sale of E190 aircraft of $5.8 million. The 2013 impairment charges of $21.2 million related to owned E190 aircraft and the write-off of maintenance deposits on leased E190 aircraft.

Fleet Highlights

During 2014, our operational fleet decreased from 258 to 244. The company took delivery of 22 E175 aircraft, permanently parked 15 E140 aircraft, temporarily parked 13 E145 aircraft, sold two E190 aircraft and leased three E145 aircraft and three E190 aircraft.

During 2014, we took delivery of 22 E175 aircraft and removed 28 small regional jets.

In December 2014, we completed the sale of two E190 aircraft and executed an agreement to sell three other E190 aircraft. The sale of these five aircraft will leave us with two owned E190 aircraft and three leased E190 aircraft that are expected to be removed from fixed-fee charter service in August of 2015. We expect to return the three leased aircraft to the lessor in 2015 and the remaining two aircraft are under a firm sales agreement.

Balance Sheet and Liquidity

The Company’s total cash balance decreased $55.1 million to $245.6 million as of Dec. 31, 2014, compared to Dec. 31, 2013. Restricted cash decreased $2.3 million, to $21.7 million, from Dec. 31, 2013, due to the escrow requirements under our fixed-fee charter agreements. The Company’s unrestricted cash balance decreased $52.8 million, to $223.9 million, from Dec. 31, 2013, due primarily to equity investments in new aircraft and the redemption of the $22.3 million and $26.5 million convertible notes on April 7, 2014, and Oct. 28, 2014, respectively. The Company also purchased 212,881 shares of its common stock on the open market, during the third quarter of 2014 for total consideration of $2.1 million. A consolidated balance sheet and summary cash flow statement have been included in the tables section of this release.

The Company’s debt increased to $2.34 billion as of Dec. 31, 2014, compared to $2.17 billion at Dec. 31, 2013, primarily related to the financing of 22, new E175 aircraft purchased for our American Airlines fixed-fee agreement. As of Dec. 31, 2014, approximately 98 percent 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 percent discount factor, the present value of these lease obligations was approximately $0.48 billion and $0.59 billion as of Dec. 31, 2014, and Dec. 31, 2013, respectively.

Corporate Information

Republic Airways Holdings Inc., based in Indianapolis, Indiana, is an airline holding company that owns Republic Airlines, Shuttle America and Chautauqua Airlines, collectively “the airlines.” As of Dec. 31, 2014, the airlines operated a combined fleet of about 245 aircraft and offered scheduled passenger service on more than 1,300 flights daily to approximately 100 cities in the U.S., Canada and the Caribbean through fixed-fee flights operated under our major airline partner brands, including American Eagle, Delta Connection, United Express, and US Airways Express. The Company currently employs about 6,500 aviation professionals.

Copyright Photo: Brian McDonough/AirlinersGallery.com. During 2014 Republic took delivery of 22 Embraer E175 aircraft. Republic Airlines’ Embraer ERJ 170-200LR (ERJ 175) N415YX (msn 17000378) arrives in Washington (Reagan National).

American Eagle-Republic Airlines:

The end of the line for Chautauqua Airlines, aircraft, personnel and operations shifted to Shuttle America

Chautauqua Airlines (Indianapolis), as planned, ended operations yesterday at midnight (December 31). The Embraer ERJ 145s, operated as a Delta Connection carrier, were shifted to sister airline Shuttle America (Indianapolis) starting today (January 1).

The aircraft will now operate under the “Mercury” call-sign. The certificate is currently retained by parent company, Republic Airways Holdings, and is being considered for sale to an undisclosed company. Chautauqua aircraft and employees have been transferred to the new certificate.

Chautauqua Airlines was established on May 3, 1973 in Jamestown, Chautauqua County, New York (hence the name) and started operations on August 1, 1974 using two 15-passenger Beechcraft 99 aircraft.

Chautauqua Airlines has also operated as American West Express, American Connection, Continental Express, Frontier Airlines (2nd), Midwest Connect, Trans World Express, United Express, US Airways Express and USAir Express.

The ERJ 145s are being phased out from the Delta Connection contract agreement. Previously on December 11, 2014 parent Republic Airways Holdings Inc. announced it had reached an amendment to its Capacity Purchase Agreement with Delta Air Lines to operate nine additional 69-seat ERJ 170 aircraft. The aircraft are scheduled to be placed into service between the 3rd quarter of 2015 and the 2nd quarter of 2016 and will operate for a term of six years per aircraft. In addition, the Company and Delta have agreed to extend the term of the agreement for the existing 14 ERJ 170 aircraft by four years, or through October 2021, and the existing 16 ERJ 175 aircraft by approximately five years, or through February 2024.

The nine additional ERJ 170 aircraft will either be sourced internally by the Company or with used aircraft available in the open market.

Copyright Photo: Chautauqua Airlines started operations in 1974 as an Allegheny Commuter airline from Chautauqua County in western New York State.

Shuttle America to operate nine additional Embraer ERJ 170s for Delta Air Lines

Republic Airways Holdings Inc. (Indianapolis) has announced it has reached an amendment to its Capacity Purchase Agreement (“CPA”) with Delta Air Lines (Atlanta) to operate nine additional 69-seat Embraer ERJ 170 (E170) aircraft. The aircraft are scheduled to be placed into service between the 3rd quarter of 2015 and the 2nd quarter of 2016 and will operate for a term of six years per aircraft. In addition, the Company and Delta have agreed to extend the term of the agreement for the existing 14 ERJ 170 aircraft by four years, or through October 2021, and the existing 16 ERJ 175 aircraft by approximately five years, or through February 2024. Both types are operated for Delta by subsidiary Shuttle America.

The nine additional ERJ 170 aircraft will either be sourced internally by the Company or with used aircraft available in the open market.

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

Copyright Photo: Brian McDonough/AirlinersGallery.com. Embraer ERJ 170-100SU N870RW (msn 17000138) arrives in Washington (Reagan National).

Delta Connection-Shuttle America aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-UnitedStates-1/Airlines-UnitedStates-1/Delta-Connection-Shuttle

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:

http://airlinersgallery.smugmug.com/Airlines-UnitedStates-3/Airlines-United-States3-QZ/United-Express-Republic

United Airlines choses Republic Airways Holdings to operate 50 new Embraer E175s, United will phase out the Q400s

United Airlines (Chicago) today (September 17) announced the company will amend its existing agreement with regional carrier Shuttle America, to add 50 Embraer E175 aircraft. Shuttle America‘s (Indianapolis) parent company, Republic Airways Holdings Inc. (Indianapolis), will determine which of its carriers will operate the new 76-seat aircraft under the United Express brand.

United anticipates deliveries will begin in July 2015 and continue through the summer of 2017. The new aircraft will replace large turboprop airplanes and older, less-efficient aircraft and are in addition to 70 E175s whose deliveries began this year for other carriers to operate as United Express.

E175 Features:

The E175s will offer 12 seats in United First and 64 seats in United Economy, including 16 extra-legroom United Economy Plus seats. The aircraft also offer more personal space for customers, with wider seats and aisles than other regional aircraft; a power outlet at each United First seat; and large overhead bins that can accommodate standard-size carry-on bags.

Additional Fleet Updates:

In addition to expanding the E175 fleet, United plans to make the following changes to its United Express service:

1. Extend the airline’s agreement with Shuttle America on 38 E170s, with new expiration dates beginning in September 2019 and continuing through December 2022; and

2. Begin removing, in 2015, 31 Bombardier Q400s operated by Republic Airlines, a carrier also owned by Republic Airways Holdings Inc. (some of the aircraft will go to Flybe).

In related news, Embraer S.A. and Republic Airways Holdings Inc. (Indianapolis), operator of the largest E-Jets fleet in the world, announced a contract today for the sale and purchase of 50 firm E175 jets. The value of the firm order, which will be included in Embraer’s 2014 third-quarter backlog, is estimated at $2.1 billion, based on 2014 list prices. The aircraft will be operated for United Airlines under the United Express brand. Deliveries are scheduled to begin in the third quarter of 2015 and extend until 2017.

This contract is in addition to the order signed by Embraer and Republic in January 2013 for 47 firm and 47 option E175s – 34 of which have already been delivered. In addition to the new order, Republic maintains 32 options for E175s.

This transaction is in connection with the transfer of Q400 turboprop airplanes currently operated by Republic Airlines to UK’s carrier Flybe Limited. Concurrently, Flybe and Embraer have agreed to reduce by 20 the outstanding order for 24 E175’s the airline has on order backlog. Therefore, the net increase to Embraer’s backlog in the 3rd quarter will be 30 E175 jets.

Republic Airways was one of the first U.S. carriers to fly Embraer E-Jets, operating its first E170 in 2004. With this new order, the Republic Airways E-Jet fleet will consist of 72 E170s and 151 E175s for a total of 223 E-Jets. Republic Airways is also a long-time customer of the ERJ 145 regional jet family with 41 flying as Delta Connection aircraft.

Finally, United Airlines launched its Mercedes-Benz tarmac transportation service at Denver International Airport, offering chauffeured convenience at more airports than any other carrier. With this expansion, United offers the service at all of its U.S. hub airports.

The Mercedes-Benz tarmac transportation service provides the airline’s top frequent flyers with greater comfort and convenience, offering an additional way for these customers to save valuable time when connecting through the airline’s hubs. United will chauffeur selected Global Services members and United Global First customers to their connections in Denver in a Mercedes-Benz GL350 BlueTEC SUV, powered by environmentally friendly, clean diesel technology.

United representatives will meet customers at the aircraft, escort them to the waiting Mercedes-Benz vehicle and drive them across the tarmac to their connecting flight. The expediting service gives priority to customers with close connections.

United also offers the transfer service at its hub airports in Chicago, Houston, New York/Newark, San Francisco, Los Angeles and Washington Dulles.

Along with tarmac transportation, the airline and Mercedes-Benz USA partner to provide promotional packages and bonus miles to United’s MileagePlus Premier members, which include Global Services members, who purchase or lease certain new Mercedes-Benz vehicles. Current offers are available at united.com/Mercedes.

Earlier this year, United opened a new Global Services reception lobby for its top frequent flyers at the airline’s New York hub at Newark Liberty International airport. In October, the airline will open a Global Services reception lobby at San Francisco International Airport. In June, United unveiled an all-new United Club airport lounge and United Global First Lounge at London Heathrow International Airport’s new Terminal 2, The Queen’s Terminal.

Top Copyright Photo: Ken Petersen/AirlinersGallery.com. Shuttle America currently operates 38 Embraer ERJ 170-100SE aircraft for United Airlines under the United Express brand. N637RW (msn 17000051) arrives at Washington’s Reagan National Airport (DCA).

United Airlines (current):

United Express-Shuttle America:

United Express-Republic Airlines (2nd):

Bottom Copyright Photo: Ken Petersen/AirlinersGallery.com. Republic Airlines (2nd) currently operates 31 Bombardier DHC-8-402s (Q400s) for United Airlines at its hubs. N202WQ (msn 4202) arrives at Raleigh-Durham (RDU).

Republic Airways Holdings’ 2Q income rises to $20.1 million

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

Republic’s pre-tax income from continuing operations for the second quarter of 2014 was $33.3 million, or $0.63 per diluted share, a 23.3% increase over the previous year. Republic’s income from continuing operations for the second quarter of 2014 was $20.1 million, or $0.38 per diluted share. This is a $4.0 million, or $0.08 per diluted share, increase from the previous year.

Republic’s pre-tax income from continuing operations for the six-month period was $56.1 million, or $1.06 per diluted share, a 21.2% increase over the previous year. Republic’s income from continuing operations for the six-month period was $34.1 million, or $0.65 per diluted share. This is a $6.6 million, or $0.12 per diluted share, increase from the same six-month period of the previous year.

On April 7, 2014, Republic’s Board of Directors authorized management to use up to $75.0 million of unrestricted cash to buy back common shares and/or early retire convertible debt during the following 12 months. Pursuant to the authorization, Republic redeemed a $22.3 million convertible note, leaving $52.7 million remaining on the share repurchase and convertible debt retirement authorization. The repayment of the convertible note reduced the Company’s dilutive share count by about 2.2 million shares for the quarter.

“I am pleased we were able to report improved second quarter financial results, as we remain focused on executing on our strategic plan to simplify and streamline our business,” said Republic’s CFO Timothy Dooley.

“Last Friday, Republic celebrated 40 years of commercial passenger service and our long-term success would not be possible without the hard work and dedication of my 6,500 co-workers. I would like to thank them for their diligence and commitment to our mission to provide safe, clean and reliable service to our airline partners and our guests on board,” said Republic’s Chairman, President and CEO Bryan Bedford.

Operating Revenue Highlights

Operating revenues increased $6.3 million, or 1.9%, from the second quarter of 2013 to $343.0 million in the second quarter of 2014. Fixed-fee service revenue increased $20.2 million, or 6.4%, to $337.1 million due to increased Q400 flying with United Airlines and increased E175 flying with American Airlines. Passenger service revenue decreased $13.8 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 8.6% or $7.3 million 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 (FAR 117).

Fuel expense for the second quarter of 2014 decreased $6.6 million, or 54.1%, to $5.6 million primarily due to a 57.6% decrease in gallons consumed related to the elimination of pro-rate flying for Frontier. Fuel expense is primarily attributable to our fixed-fee charter operations and is a pass-through to our partner.

Landing fees and airport rents decreased $7.8 million, or 54.2%, primarily due to United Airlines beginning to pay all landing fees in June 2013, coupled with the decrease in our small jet operations.

The increase in depreciation and amortization of 16.9%, or $6.1 million, was primarily related to the increase in the E175 fleet.

Fleet Highlights

As of June 30, 2014, Republic operated a fleet of 237 aircraft. Through June, the Company has removed 23 ERJ aircraft from CPA service, and has taken delivery of 11 E175 aircraft and expects to take delivery of 13 E175 aircraft during the remainder of 2014. As of June 30, 2014, within its fixed-fee and charter agreements, the Company operated 45 aircraft with 44-50 seats and 192 aircraft with 69-99 seats.

Balance Sheet and Liquidity

The Company’s total cash balance decreased $14.2 million to $286.5 million as of June 30, 2014, compared to December 31, 2013. Restricted cash increased $0.8 million, to $24.8 million, from December 31, 2013, due to the escrow requirements under fixed-fee charter agreements. The Company’s unrestricted cash balance decreased $15.0 million, to $261.7 million, from December 31, 2013, due to the redemption of the $22.3 million convertible note on April 7, 2014. A consolidated balance sheet and summary cash flow statement have been included in the tables section of this release.

The Company’s debt increased to $2.27 billion as of June 30, 2014, compared to $2.17 billion at December 31, 2013, primarily related to the financing of 11 new E175 aircraft purchased for our American Airlines fixed-fee agreement. As of June 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 $0.53 billion and $0.59 billion as of June 30, 2014, and December 31, 2013, respectively.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. With the sale of subsidiary Frontier Airlines in September 2013, Republic no longer operates Embraer 190s for Frontier as pictured in the past. As a result, revenue dropped by $13.8 million because of the removal of the ERJ 190 aircraft operating under pro-rate agreement with Frontier Airlines. Republic currently operates five E190s for Caesars Entertainment for gambling charters. Now gone, Embraer ERJ 190-100 IGW N175HQ (msn 19000216) climbs away from Los Angeles International Airport in full Frontier colors.

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

Chautauqua Airlines to be merged into Shuttle America, ending a long career

Republic Airways Holdings (Indianapolis) is an airline holding company that owns Chautauqua Airlines, Republic Airlines (2nd) and Shuttle America. The group is consolidating operations in order to reduce costs.

CEO Bryan Bedford issued a short statement to the employees of the group concerning the closure of Chautauqua Airlines before the end of the year. The group intends to consolidate the Chautuaqua Embraer ERJ operations into the Shuttle America operating certificate. Chautauqua will be shut down.

Chautauqua Airlines was established on May 3, 1973, in Jamestown, Chautauqua County, New York State and began operations on August 1, 1974 using two 15-passenger Beech 99 aircraft. It was one of earliest Allegheny Commuter carriers. It became an USAir Express (later US Airways Express) carrier in 1979.

Besides the Allegheny/USAir/US Airways lineage, Chautauqua has operated under the America West Express, American Connection, Continental Express, Frontier Airlines (2nd), Midwest Connect, Trans World Express and United Express brands.

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:

Route Map of the Republic Airways’ airlines:

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 (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).

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