Tag Archives: Republic Airways Holdings

Republic Airways Holdings reports net income of $2.6 million in 2Q

Republic Airways Holdings Inc. (Indianapolis) reported operating revenues of $683.3 million for the quarter ended June 30, 2010, a 113.6% increase, compared to $320.0 million for the same period last year. The increase in revenues is primarily due to the acquisition of Frontier Airlines and Midwest Airlines during 2009. The Company also reported net income of $2.6 million, or $0.08 per diluted share, for the quarter ended June 30, 2010, compared to $14.1 million of net income, or $0.41 per diluted share, for the same period last year.

During the second quarter of 2010, the Companyโ€™s pre-tax income of $4.8 million was negatively impacted by a total of $19.7 million of items: $18.5 million of expenses related to the integration of the branded business and accruals for the lease return costs of two A318 and five Q400 aircraft; $6.4 million in negative adjustments for fuel hedges and prior period fuel excise taxes; and a $5.2 million positive adjustment due to a reduction in lease obligations for Midwest aircraft and office facilities.

During the quarter the Company took delivery of two Airbus A320 aircraft and the final two Embraer ERJ 190 aircraft previously purchased from US Airways and removed six Bombardier DHC-8-402 (Q400) aircraft from service. The Company also placed back into service two Embraer ERJ 145 aircraft that were previously removed to be returned to the lessors. The total operational fleet remains unchanged from March 31, 2010 at 282 aircraft as of June 30, 2010.

On April 13, 2010, the Company announced the selection of the Frontier Airlines name for its consolidated branded network.

As a reminder, Midwest and Frontier Airlines were acquired on July 31, 2009 and October 1, 2009, respectively.

On July 1, 2010, the Company announced that it will remove four 120-seat Airbus A318s and one 76-seat Embraer ERJ 170 aircraft from scheduled service for Frontier in September 2010. Three of these aircraft will be sold to third parties and two will be returned to their lessors. Beginning in January 2011, Frontier will accept the first of six new 162-seat A320 aircraft. All six aircraft have firm lease financing arranged and will be arriving during the first two quarters of 2011.

On July 21, 2010, the Company announced a letter of intent with Embraer to acquire 24 Embraer ERJ 190 or ERJ 195 aircraft with deliveries beginning in the mid 2011. The Embraer 190 would offer 99 seats, while the ERJ 195 would be configured with 116 seats if the Company chose to convert any of the orders. Both aircraft types would be configured with STRETCH seating. The aircraft would be used to replace smaller regional jets in the Company as well as create growth for Frontier into 2012.

Copyright Photo: Bruce Drum. Republic Airlines’ (2nd) Embraer ERJ 170-100SU N821MD (msn 17000042) is painted in the house colors of its parent Republic Airways Holdings. The regional jet is pictured departing from runway 27R at Fort Lauderdale/Hollywood.

Republic signs LOI for 24 additional Embraer ERJ 190s

Republic Airways Holdings (Indianapolis) announced today it has signed a Letter of Intent (LOI) with Embraer to acquire 24 new Embraer ERJ 190 aircraft with the option to convert any of the aircraft in the order to the larger Embraer 195 model. The LOI is subject to final documentation, including final commercial terms.

Under the agreement, deliveries would begin in mid 2011, with the first six aircraft arriving by the end of the year. The aircraft would be configured in a single-class arrangement and include stretch seating, a key on-board amenity offered in Republicโ€™s branded operation. The Embraer 190 would offer 99 seats, while the E195 would be configured with 116 if Republic chose to convert any of the orders.

Republic Airways Holdings loses $36.5 million in the first quarter

Republic Airways Holdings Inc. (Indianapolis) reported operating revenues of $608.7 million for the quarter ended March 31, 2010, an 87.1% increase, compared to $325.3 million for the same period last year. The increase in revenues is due to the acquisition of our branded carriers during 2009. The Company also reported a net loss of $36.5 million, or $1.06 per diluted share, for the quarter ended March 31, 2010, compared to $2.2 million of net income, or $0.06 per diluted share, for the same period last year.

During the first quarter of 2010, the Companyโ€™s pre-tax loss of $58.5 million was negatively impacted by an $11.5 million, non-cash impairment to write off the Midwest Airlines trademark and reduce the carrying value of other assets. The Company also recorded a total of $13.1 million of expenses related to the integration of the branded business and the return of Bombardier Q400 and CRJ aircraft. Also, the severe winter storms in the first quarter of 2010 had an estimated $7.5 million negative impact on pre-tax results.

Excluding all non-recurring items and the impact of the storms, the Companyโ€™s pre-tax loss was $26.4 million.

Copyright Photo: Norbert G. Raith. A superb view of subsidiary Frontier Airlines’ Airbus A318-111 N809FR (msn 3092) arriving at Atlanta.

Frontier Airlines to add the Gogo system to the 32 Embraer ERJ 170s and ERJ 190s

Frontier Airlines (2nd) (Denver), a wholly-owned subsidiary of Republic Airways Holdings, Inc. (Indianapolis), has announced it will add the Gogoยฎ inflight internet service on its Embraer fleet. Frontier plans to have the service installed on its fleet of 32 ERJ 170 and ERJ 190 aircraft by the end of 2010.

Gogo internet access will be available for purchase starting at $4.95, based on length of flight and type of device used to access Gogo. Once connected, customers can use Gogo to check e-mail, log into a corporate VPN, watch their favorite Frontier commercials and more.

Copyright Photo: Jay Selman. Republic Airlines’ (2nd) (Indianapolis) Embraer ERJ 170-100SU N818MD (msn 17000039) pushes back from the gate at the Denver hub when it was operated under contract with Frontier. The Republic Embraer fleet, now painted in the Midwest Airlines brand, is now expected to be repainted back in the Frontier livery due to the recent announcement the Midwest brand would be retired.

Frontier and Midwest to become one airline

Republic Airways Holdings (Indianapolis), the owner of Frontier Airlines (2nd) (Denver) and the Midwest Airlines (Milwaukee) will announce on April 13 the fate of these airline names. Republic is expected to announce it will decide on one name for both entities. Republic has announced the results of its polling and both the Denver and Milwaukee markets cherish their individual brands.

Here is a newspaper article from the Milwaukee perspective:

www.bizjournals.com/milwaukee/stories/2010/03/29/daily66.html?jst=b_ln_hl

Here is a newspaper article from the Denver perspective:

www.denverpost.com/headlines/ci_14811266

Our guess, since “Midwest Airlines” is no longer an airline (the AOC was surrendered when the 717s were retired) and the brand has been weakened with smaller aircraft, Republic will decide the Frontier name is best for both markets. However Frontier will now start to serve cookies!

Frontier Airlines’ employees rally to save the unique name and brand

Frontier Airlines’ (2nd) (Denver) employees are rallying to save the animals on the tails of the fleet according to Denverpost.com. Last week, the employees launched a Facebook page called “Save the Frontier Airlines Brand and Animals” after The Denver Post reported that Frontier’s parent company, Republic Airways Holdings, is considering renaming its two brands, Frontier Airlines and Midwest Airlines. The holding company is dening it will name both Frontier and Midwest as “New Air”. Republic Airways Holdings is currently reviewing it branding options.

Our opinion, if Republic decides to drop the successful Frontier brand in a “bonehead decision”, they do not deserve to run an airline. We applaud the efforts of the employees. Republic, listen carefully to your loyal and dedicated employees!

Here is the full report:

http://www.denverpost.com/headlines/ci_14494770

Copyright Photo: Gerd Beilfuss.

Republic signs a purchase agreement for 40 Bombardier CS300 jets

Republic Airways Holdings Inc. (Indianapolis) announced today (February 25) it has signed a purchase agreement for 40 CS300 jets, part of the next-generation CSeries aircraft being developed by Bombardier. This makes Republic the North American launch customer. Republic also has options for up to an additional 40 aircraft. The aircraft, which will be configured in a single-cabin, with two-by-three seating for 138 passengers, including 25 STRETCH seats, is scheduled for delivery beginning in the second quarter of 2015.

The aircraft are powered by Pratt & Whitney PW1000G engines. Republic has signed an exclusive 15-year PureSolution maintenance contract with Pratt & Whitney for the support of the engines.

Republic did not specify which airline would operate the aircraft. Republic Airways Holdings is an airline holding company that owns Chautauqua Airlines, Frontier Airlines (2nd), Lynx Aviation, Midwest Airlines, Republic Airlines (2nd) and Shuttle America,

Republic Airways Holdings reports 4Q and 2009 financial results

Republic Airways Holdings Inc. (Indianapolis) yesterday (February 24) reported net income of $20.1 million for the quarter ended December 31, 2009, compared to $19.0 million of net income, for the same period last year. The fourth quarter results for 2009 include $109.2 million of goodwill and other impairment charges and a $203.7 million gain on bargain purchase related to the acquisition of Frontier Airlines. These two non-recurring items increased pre-tax income by $94.5 million and net income by $17.1 million for the quarter. Additionally, the Company recorded a year-end tax adjustment, which increased net income by $2.1 million for the quarter. Excluding these non-recurring items, income before taxes was $1.5 million and net income was $0.9 million.

For the full year ended December 31, 2009, net income for the year was $39.7 million, compared to $84.6 million of net income.

During the quarter the Company acquired Frontier Airlines and its 62 operational aircraft. The Company also took delivery of six of the ten Embraer ERJ 190 aircraft purchased from US Airways during the quarter and removed the final six Boeing 717-200 aircraft from its fleet, bringing the total operational fleet from 228 aircraft at September 30, 2009 to 290 aircraft at December 31, 2009.

Copyright Photo: Operated by subsidiary Republic Airlines (2nd) as a spare aircraft but carrying Republic Airways titles, Embraer ERJ 170-100SU N821MD (msn 17000042) climbs away from runway 27R at Fort Lauderdale/Hollywood.

Frontier’s Sean Menke to leave Republic Airways Holdings

Frontier Airlines’ (2nd) (Denver) former CEO Sean Menke who guided the company out of bankruptcy will leave Republic Airways Holdings, the new owners of Frontier. Republic has also announced additional details on its branded service.

Press release:

finance.yahoo.com/news/Republic-Airways-Announces-bw-2685214445.html?x=0&.v=1

Will Republic Airways replace Frontier’s Airbus fleet with Bombardier CSeries aircraft?

Please click on the AG icon for a direct link to the Frontier photo gallery.

Republic Airways Holdings (Indianapolis), as the new owner of Frontier Airlines (2nd) (Denver), according to this report, is now considering acquiring Bombardier CSeries aircraft as a possible replacement (partial or in whole) of the Frontier Airbus fleet. The holding company is also talking to Airbus and Boeing. If ordered, who will operate the aircraft? Stay tuned, there could be changes coming to the popular Rocky Mountain airline in the coming years.

News link:

www.reuters.com/article/idCAN1020975920091210?rpc=44