Tag Archives: Republic Airways

American to add a new route from Philadelphia to Bentonville (Northwest Arkansas)

American Airlines is planning to add a new American Eagle route from its Philadelphia hub to Bentonville, AR (Northwest Arkansas), the home of Walmart, on September 4, 2019.

The new route will be operated by Republic Airline Embraer 175s.

Republic Airline’s parent, Republic Airways, introduced this new livery in April 2019 on the pictured Embraer ERJ 170-100SU N826MD (msn 17000046).

Photos: Republic Airways.

In other news, American will also add Embraer ERJ 140 service from the Dallas/Fort Worth hub to the Tri-Cities Airport (Northeast Tennessee) on August 15, 2019 according to Airline Route. The new route will be operated by Envoy Air.

Embraer and Republic Airways firm up an order for 100 E175s

Embraer and Republic Airways, the world’s largest E-Jet operator, have signed a contract for a firm order of 100 E175 jets.

This agreement was announced as a Letter of Intent (LOI) at the Farnborough Airshow, in July.

The firm order has a value of $4.69 billion, based on current list prices, and will be included in Embraer’s 2018 fourth-quarter backlog. Deliveries will start in 2020. The contract also includes purchase rights for an additional 100 E175s, with conversion rights to the E175-E2, bringing the total potential order up to 200 E-Jets.

Republic Airways and Embraer established their partnership in 1999 when one of its former subsidiaries, Chautauqua Airlines, took delivery of its first ERJ 145 in the livery of US Airways Express. Today, Republic Airline operates a fleet of nearly 190 Embraer 170/175 aircraft and provides fixed-fee flights operated under its major airline partner brands of American Eagle, Delta Connection and United Express. Including this new contract, Embraer has sold more than 535 E175s to airlines in North America since January 2013, earning more than 80% of all orders in this 76-seat jet segment.

Image: Embraer

Embraer and Republic Airways sign Letter of Intent for up to 200 E175s

Embraer and Republic Airways, the world’s largest E-Jet operator, announced at the 2018 Farnborough Airshow that they have signed a Letter of Intent (LoI) for a firm order of 100 E175, with the right to convert to E175-E2 aircraft, and purchase rights for an additional 100 E175 aircraft. If all purchase rights are exercised, the contract has a value of up to USD 9.3 billion based on current list prices. This order will be included in Embraer’s backlog as soon as it becomes firm, later this year.

Republic Airways and Embraer established their partnership in 1999 when one of its former subsidiaries, Chautauqua Airlines, took delivery of its first ERJ 145 in the livery of US Airways Express.

Today, Republic Airline operates a fleet of nearly 190 Embraer 170/175 aircraft and provides fixed-fee flights operated under its major airline partner brands of American Eagle, Delta Connection and United Express. Including this new contract, Embraer has sold more than 520 E175s to airlines in North America since January 2013, earning more than 80% of all orders in this 70-76-seat jet segment.

Image: Embraer.

Republic Airways Holdings to go to federal arbitration with its pilots on September 16

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

Republic Airways Holdings logo

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

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

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

Republic Airways: AG Airline Slide Show

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Teamsters file a lawsuit against Republic Airways, Republic responds

Teamsters Local 357 has filed a lawsuit against Republic Airways Holidays (Indianapolis) charging the company has unilaterally changed the working conditions for its pilots regarding “open time” flying. Here is the full statement:

INTERNATIONAL BROTHERHOOD OF TEAMSTERS LOGO

On July 9, Teamsters Local 357 in Plainfield, Indiana, filed a lawsuit against Republic Airways for unilaterally changing pilots’ working conditions regarding “open time” flying without first agreeing with the union about those changes. More than 2,200 Republic pilots are members of Local 357 and have been seeking a fair contract from the company since 2007.

The lawsuit asserts that the company’s changes are unlawful alterations in the status quo and that they took place even while the items changed were the subject of ongoing bargaining between Local 357 and Republic. The purpose of the lawsuit is to compel Republic’s compliance with its lawful duties under the Railway Labor Act (RLA), the federal law which governs labor relations in the airline industry.

To uphold the principle that Republic can only make changes to the pilots’ agreement through the bargaining process, Local 357 filed a lawsuit in the U.S. District Court in Indianapolis (case number: 1:15-cv-01066-WTL-MJD) seeking injunctive relief, declaratory judgment and other appropriate relief against the company’s unlawful changes in the status quo of pilot contractual rates of pay, rules and working conditions.

“Republic has had eight years to come to an agreement. The pilots are seeking a fair contract that spells out pay, benefits and working conditions, so that the company can’t give something and take it back at their whim. That’s what these hardworking, skilled pilots deserve now—plain and simple,” said Jim Clark, President of Local 357.

Pending the outcome of this lawsuit, the pilots will maintain their normal practice with regard to flying.

Republic Airways Holdings (Indianapolis) has responded to the lawsuit:

Republic Airways Holdings logo

On Thursday, July 9, 2015, the International Brotherhood of Teamsters (IBT) Local 357, representing Republic’s pilots, filed suit against the Company alleging that the Company unilaterally increased compensation for pilots and new hires in violation of the Railway Labor Act. We believe the suit is completely without merit, and the Company will take appropriate steps to respond. The specific allegations made by IBT Local 357 are incomplete and factually incorrect.

The IBT and the Company are currently in the middle of negotiations supervised by the National Mediation Board for an amended collective bargaining agreement.

The Company stands ready with its current proposal to make a significant investment in our pilots, which is not only fair and equitable, but would place our pilots ahead of their peers in the regional airline industry. This lawsuit is nothing more than an improper tactic by IBT Local 357 to distract our employees and pressure the Company with respect to the negotiations process.

Top Copyright Photo: Formerly operated for Frontier Airlines (2nd), Embraer ERJ 190-100 IGW N163HQ (msn 19000255) is painted in the Republic Airways house livery, but it is operated by Republic Airlines (2nd). The regional jet lines up for the runway at Baltimore/Washington (BWI).

Republic Airways aircraft slide show: AG Airline Slide Show

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: AG Slide Show

Route Map of the Republic Airways’ airlines:

Republic-Chautauqua-Shuttle America 5.2014 Route Map

 

 

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 Holdings 5.2014 Route Map

Republic Airways (Republic Airlines): AG Slide Show

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: AG Slide Show

Republic Airways Holdings logo

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

Chautauqua-Republic-Shuttle America 4.2014 Route Map

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): AG Slide Show

Republic Airways (Republic Airlines 2nd):

AG Slide Show

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:

Please click on the map for the full-size view.

Please click on the map for the full-size view.

Republic Airways-Republic Airlines (2nd): AG Slide Show