Tag Archives: Republic Airways Holdings

Republic Airways Holdings’ pilots to be represented by the Teamsters

Republic Airways Holdings’ (Indianapolis) pilots will be represented by the Teamsters. The International Brotherhood of Teamsters won the representation election yesterday for all pilots employed by Republic Airways Holdings, receiving 68 percent of the total vote.

After certification by the National Mediation Board (NMB), the International Brotherhood of Teamsters will become the representative of the pilots of Chautauqua Airlines, Frontier Airlines (2nd), Lynx Aviation, Republic Airlines (2nd) and Shuttle America.

Previously, Frontier pilots were represented by the Frontier Airlines Pilot Association (FAPA). Midwest pilots were represented by the Air Line Pilot Association (ALPA) and Lynx was represented by the United Transportation Union (UTU).

In 2009, Republic Airways placed the winning bid in an auction to acquire the then-bankrupt Frontier Airlines.

In October 2010, Teamsters Local 357 filed with the NMB for single carrier status to integrate all RAH-owned airlines into one representative body. On April 8, 2011, the National Mediation Board ruled that all airlines own by RAH are operating as a single transportation system. The NMB announced in early May that an election was required to determine the representation for the new, combined pilot group. IBT received the majority of the votes in the election.

The pilots of Chautauqua, Republic and Shuttle America are working under a 2003 contract and wages. The contract has been amendable since 2007. The pilots staged an informational picket in Indianapolis in June. Contract negotiations are currently in federal mediation with the NMB.

The newly combined pilot group will come under one contract following contract amalgamation negotiations which will be initiated by Teamsters at the appropriate time and after consultation and joint planning among the pilots of all RAH subsidiaries.

Copyright Photo: Jay Selman. Please click on the photo for additional information.

Republic signs LOI for 40 Airbus A319neos and 40 A320neos for Frontier

Republic Airways Holdings Inc. (Indianapolis) today (June 22) announced it has signed a letter of intent (LOI) with Airbus to purchase 40 A319neo (New Engine Option) and 40 A320neo aircraft. The aircraft, which will be powered by CFMโ€™s LEAP-X engines, will be flown by Republicโ€™s Frontier Airlines (2nd) (Denver) subsidiary.

Frontier currently operates 58 Airbus A318, A319 and A320 aircraft.

Surprisingly Republic has recently been moving ahead towards becoming a minority owner of Frontier.

Frontier Slide Show: CLICK HERE

Is Republic now admitting buying Frontier was a mistake?

Republic Airways Holdings (Indianapolis) no longer wants to be the majority shareholder of Frontier Airlines (2nd) (Denver). Frontier was responsible for putting the holding company into the red in 2010. Republic now has a tentative deal with Frontier’s pilots to forgo future pay increases and benefits in return for a share of the company. Under this proposed deal according to this article, Republic will become a minority shareholder in Frontier by the end of 2014.

Is this an opportunity for JetBlue Airways?

Read the full story in Indystar.com: CLICK HERE

Copyright Photo: James Helbock. Please click on the photo for additional information.

Frontier Route Map:

Branded operations sends Frontier Airways Holdings into a loss for the first quarter

Republic Airways Holdings (Indianapolis) reported pre-tax income of $17.6 million for its Fixed-Fee operations (flying as AmericanConnection, Continental Express, Delta Connection, United Express and US Airways Express). However the branded Frontier Airlines operations sent the company into the red due to an overall loss of $55.2 million for the first quarter.

According to the holding company:

“Excluding fuel reimbursement from our partners, fixed-fee service revenues were flat compared to the prior yearโ€™s first quarter. Income before taxes on the fixed-fee operations improved 23.1% to $17.6 million for the quarter compared to a pre-tax income of $14.3 million for the first quarter of 2010, which included $2.0 million of CRJ aircraft return costs. Cost per ASM (CASM), including interest expense but excluding fuel increased 0.9% to 8.14ยข for the first quarter of 2011, from 8.07ยข for the same quarter of 2010.”

However for the branded operations, Republic reports the following:

“The Companyโ€™s branded business segment includes all operations marketed as Frontier Airlines. Total revenues on Frontier increased 12.2% to $395.4 million for the quarter, compared to $352.3 million for the same period in 2010. Capacity on Frontier, as measured by ASMs, was down 1.4% year over year for the first quarter. Load factor was 78.7% for the quarter, up 3.0 points from the first quarter of 2010 and total revenue per ASM (TRASM) was 10.85ยข, up 13.9% from the same quarter in 2010. For the quarter ended, March 31, 2011, Frontier posted a pre-tax loss of $55.2 million compared to a pre-tax loss of $70.4 million for the quarter ended March 31, 2010.

The unit cost for Frontier, excluding fuel, was 7.77ยข for the quarter, a 5.2% increase from 7.38ยข (excluding impairments) for the same metric for the first quarter of 2010. The unit cost increase was due mainly to higher engine restoration and heavy maintenance on the Airbus fleet and higher advertising costs.

Fuel costs for Frontier were $158.7 million for the quarter. The fuel cost per gallon, including into-plane taxes and fees, increased 23.7% to $2.92 for the first quarter of 2011 compared to $2.36 for the prior yearโ€™s first quarter. The increase in price resulted in $30.5 million additional fuel expense in the first quarter of 2011, as compared to first quarter 2010. The first quarter 2011 result includes unrealized fuel hedge gains of $8.7 million, or $0.16 per gallon. The first quarter 2010 result includes fuel hedge losses of $1.6 million, or $0.03 per gallon.”

Republic Airways Holdings Inc. is an airline holding company that owns Chautauqua Airlines, Frontier Airlines (2nd), Lynx Aviation, Republic Airlines (2nd) and Shuttle America.

Does Republic now regret buying Frontier Airlines?

Copyright Photo: Eddie Maloney. Please click on photo for additional details.

Frontier Route Map:

Frontier Slide Show: CLICK HERE

Republic Airlines to remove the last six ERJ 170s from the Frontier operation, will now operate 14 ERJ 170s for Delta

Republic Airlines (2nd) (Indianapolis) will remove the last six Embraer ERJ 170s from the Frontier Airlines branded operation by September 30, 2011. Republic will now operate 14 ERJ 170s under the Delta Connection banner by October 1, 2011.

Copyright Photo: Mark Durbin. Please click on the photo for the full details.

Republic Airways Holdings swings to the red in the fourth quarter and 2010

Republic Airways Holdings Inc. (Indianapolis) reported operating revenues of $649.8 million for the quarter ended December 31, 2010, a 2.0% increase, compared to $637.3 million for the same period last year. The increase in revenues is the result of higher unit revenues from the Companyโ€™s Frontier operations.

On a GAAP basis, the holding company reported a net loss of $1.3 million, or $0.03 per diluted share, for the fourth quarter ended December 31, 2010, compared to $20.1 million of net income, or $0.55 per diluted share, for the same period last year.

During the fourth quarter of 2010, the Companyโ€™s pre-tax loss of $3.0 million was negatively impacted by a total of $15.1 million of items: $14.5 million of fleet transition costs for A318 and Q400 aircraft, $2.5 million of expenses related to the integration of the branded business, offset by $1.9 million in benefits for fuel hedges.

Excluding the negative impact of the items during the quarter, the Company is reporting net income of $7.4 million and earnings per diluted share of $0.18 for the fourth quarter of 2010. Comparatively, the Company reported ex-item net income for the fourth quarter of 2009 of $2.1 million, or $0.06 per diluted share.

For the full year 2010, the holding company reported revenues of $2.7 billion compared to $1.6 billion for 2009. On a GAAP basis, the Company reported a net loss for 2010 of $13.8 million, or $0.38 per diluted share compared to net income of $39.7 million, or $1.13 per diluted share for the full year 2009.

Frontier Airways Holdings joins AMR Corporation as the only two large airline groups to lose money in the United States in 2010.

The operational fleet decreased from September 30, 2010 by two aircraft to 275 aircraft as of December 31, 2010. During the quarter, the Company removed one Airbus A318 aircraft and one Q400 aircraft from the fleet.

The total operational fleet as of December 31, 2010 was 275 aircraft, a reduction of 15 aircraft, compared to the 290 aircraft operated as of December 31, 2009.

The Company removed eight Q400 aircraft from its Frontier operations. Five were returned to the lessor, two were classified as held for sale as of December 31, 2010, and one has been subleased. Seven CRJ200 aircraft were returned to the lessor from the fixed-fee service with Continental Airlines. Four A318 aircraft were removed from our Frontier operation and sold or returned to the lessor. Two ERJ 145 aircraft were subleased offshore and one ERJ 170 was sold. Four Embraer ERJ 190 aircraft and three Airbus A320 aircraft were placed into our Frontier operation during the year.

Copyright Photo: Bruce Drum. Please click on the photo for background information on the holding company and aircraft operated.

Republic Airways Holdings’ Fixed-Fee Route Map (not including Frontier Airlines branded operations):

Republic will again operate the Embraer ERJ 170 for Delta

Republic Airways Holdings (Indianapolis) will move eight Embraer ERJ 170s from the Frontier Airlines (2nd) operation and expand the Delta Connection capacity purchase agreement with these eight aircraft. Republic did not specify the operator.

Copyright Photo: Bruce Drum. Please click on the photo for the full details.

Republic Airways reports net income of $21.3 million in the third quarter

Republic Airways Holdings Inc. (Indianapolis) reported operating revenues of $711.9 million for the quarter ended September 30, 2010, a 97.9% increase, compared to $359.6 million for the same period last year. The increase in revenues is primarily due to the acquisition of Frontier Airlines (2nd) and Midwest Airlines during 2009. The Company also reported net income of $21.3 million, or $0.58 per diluted share, for the quarter ended September 30, 2010, compared to $3.3 million of net income, or $0.09 per diluted share, for the same period last year. The diluted share count for the third quarter of 2010 includes 2.5 million shares for the $25 million of convertible debt at the Company, which decreases earnings per share by $0.04.

During the third quarter of 2010, the Companyโ€™s GAAP pre-tax income of $35.1 million was negatively impacted by a total of $7.8 million, or $0.14 per diluted share, of items: $4.7 million of expenses related to the integration of the branded business; $2.9 million of disposal costs for A318 and DHC-8-400 (Q400) aircraft; and $0.2 million in negative adjustments for fuel hedges.

Excluding the dilutive effect of the convertible debt ($0.04) and the negative impact on earnings of the integration expense items during the quarter ($0.14), the Company is reporting earnings per share of $0.76 for the third quarter of 2010.

The Companyโ€™s โ€œBrandedโ€ business segment includes all operations at Frontier Airlines (2nd), Lynx Airlines, and Midwest Airlines, collectively referred to as โ€œFrontierโ€. Total revenues on Frontier were $445.8 million for the quarter. Load factor was 87.4% for the quarter and total revenue per ASM (TRASM) was 11.15ยข. Frontier posted income before taxes of $11.6 million for the third quarter. However, excluding the items outlined in the table above, Frontier produced a pre-tax profit of $19.4 million for the third quarter. Operating cost per ASM (CASM), excluding fuel, was 7.17ยข for the third quarter of 2010. Excluding integration and aircraft return expenses, the unit cost for Frontier, excluding fuel, was 6.98ยข for the quarter.

During the quarter the Company removed three Airbus A318 aircraft, one Bombardier DHC-8-400 (Q400) aircraft, and one Embraer ERJ 170 aircraft from service. The total operational fleet was 277 aircraft as of September 30, 2010 compared to 282 aircraft as of June 30, 2010.

On July 1, 2010, the Company announced that it would remove four 120-seat A318 aircraft and one 76-seat E170 aircraft from scheduled service for Frontier in September 2010. Three of these aircraft have been sold to third parties and two were returned to their lessors. Beginning in January 2011, Frontier will accept the first of seven new 162-seat A320 aircraft. All seven aircraft have firm lease financing arranged and will be delivered during the first two quarters of 2011. The Company will also be leasing three additional 136-seat A319 aircraft that are scheduled for delivery between February and April 2011.

On July 21, 2010, the Company announced it had signed a non-binding letter of intent with Embraer to acquire 24 ERJ 190 or ERJ 195 aircraft with deliveries beginning in the mid 2011. On November 5, 2010, the Company announced it had placed a firm order for 6 E190 aircraft with Embraer for delivery in 2011 starting in August. The Company also has conditional firm orders for 18 E190 or E195 aircraft. Both aircraft types would be configured with STRETCH seating. These aircraft will be used to replace smaller regional jets in the Company as well as provide flexibility for growth at Frontier through 2013.

All ERJ 170 aircraft operating for Frontier will be reconfigured with STRETCH seating by November 30, 2010, enabling its guests to take advantage of 5 extra inches of legroom. Also, all 32 E-Jet aircraft operating for Frontier will have Gogo WiFi installed by the end of 2010.

Copyright Photo: Bruce Drum. Please click on the photo for additional information.

Republic orders six additional ERJ 190s, takes options on 18 more

Republic Airways Holdings Inc. (Indianapolis) announced yesterday (November 5) a firm order for six Embraer ERJ 190 jets and a conditional firm order for 18 Embraer 190 or 195 jets. The agreement concludes a Letter of Intent (LOI) announced earlier this year.

Republic plans to take delivery of the six firm orders between August and December 2011. The aircraft will be placed into service within the network of Frontier Airlines, and operated by Republic Airlines. Each aircraft will be WiFi-enabled and configured with STRETCH seating, which offers Frontier customers in the first four rows an additional five inches of legroom.

Republic Airways Holdings is an airline holding company that owns Chautauqua Airlines, Frontier Airlines (2nd), Lynx Aviation, Republic Airlines (2nd) and Shuttle America. The airlines offer scheduled passenger service on approximately 1,600 flights daily to 127 cities in 42 states, Canada, Costa Rica, and Mexico under branded operations at Frontier, and through fixed-fee airline services agreements with five major U.S. airlines. The fixed-fee flights are operated under an airline partner brand, such as AmericanConnection, Continental Express (now United Express), Delta Connection, United Express, and US Airways Express. The airlines currently employ approximately 11,000 aviation professionals and operate 276 aircraft.

Copyright Photo: Joe G. Walker. The Midwest branded aircraft are being repainted into Frontier colors. Please click on the photo for additional details.

Republic’s CEO to be featured on “Undercover Boss” this Sunday

Republic Airways Holdings’ (Indianapolis) CEO (Bryan Bedford) and Frontier Airlines (2nd) (Denver) will be the subject of the CBS TV show “Undercover Boss”, scheduled to be shown this Sunday (October 17) evening in the USA.

Read the article from Indystar.com

CLICK HERE

Frontier Airlines issued the following press release:

Bryan Bedford, Chairman, President and CEO of Frontier Airlines, a wholly owned subsidiary of Republic Airways Holdings, Inc. (NASDAQ:RJET –ย News), earned his wings after spending a week on the frontlines of his Company for the hit CBS show โ€œUndercover Boss.โ€ The episode featuring Frontier Airlines is scheduled to air this Sunday, Oct. 17, at 9 p.m. ET/PT on CBS.

โ€œParticipating in โ€˜Undercover Bossโ€™ was an unforgettable experience that will forever shape they way I do my job,โ€ said Bedford. โ€œExperiencing our front line as an everyday employee uncovered ways we can improve things for our employees and guests, but most importantly it showed me that our employees are so passionate about their jobs and committed to the ongoing success of our Company.โ€

During his undercover experience, Bedford worked as an aircraft appearance agent and lavatory truck driver in Denver and as a cross-trained customer service agent in Oklahoma City. Bedford also worked a shift at 35,000 feet as a Frontier flight attendant. A video clip is available to watchย here.

This Sunday weโ€™ll invite guests flying onboard Frontierโ€™s Airbus aircraft to enjoy complimentary DIRECTVยฎ service โ€œon the bossโ€ so they can tune into CBS at 9 p.m. EDT. Prior to the episode airing, fans of Frontierโ€™sFacebook fan page can take a special โ€œUndercover Bossโ€ quiz to earn a $25 credit toward their next flight. Followers of Frontierโ€™sย Twitter feed can tune in Sunday evening to learn interesting facts and figures about the jobs featured in the episode.