Tag Archives: Shuttle America

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

Republic Airways (Republic Airlines 2nd) Embraer ERJ 170-100SU N821MD (msn 17000042) FLL (Bruce Drum), originally uploaded by Airliners Gallery.

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 Company’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 Company’s “Branded” business segment includes all operations at Frontier Airlines (2nd), Lynx Airlines, and Midwest Airlines, collectively referred to as “Frontier”. 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 11.15¢. 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 7.17¢ for the third quarter of 2010. Excluding integration and aircraft return expenses, the unit cost for Frontier, excluding fuel, was 6.98¢ 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.

Republic to pull ERJ 170s out of Hawaii

Copyright Photo: Sun Valley Aviation. Please click on photo for full view, information and other photos.

Republic Airways Holdings (Indianapolis) has answered our question of what they would do with the three Shuttle America (Indianapolis) Embraer ERJ 170s operating for subsidiary Mokulele Airlines in Hawaii. The holding company yesterday (October 13) announced that it had reached an agreement with Mesa Air Group (Phoenix) to form a joint venture (JV) to combine the jet routes currently flown by both Mesa (go!) and Republic (Mokulele). Under the agreement, Embraer ERJ 170 routes currently operated by Shuttle America (Republic Airways) will be transitioned to jet service provided by go! (Mesa Air Group). The three ERJ 170s will be returned to the mainland by November and will be operated in Republic Airways’ branded network (probably for either Frontier or Midwest).

Under the terms of the JV agreement, Mokulele shareholders will contribute their ownership of Mokulele to the JV and will own 25 percent of the new unnamed venture. Additionally, current Mokulele shareholders will be obligated to fund up to $1.5 million to capitalize the JV. Republic, which is the majority shareholder of Mokulele, will forgive Mokulele’s $3.1 million outstanding debt to Republic, net of surrendered aircraft deposits.

Here is the full press release from Republic Airways Holdings:

finance.yahoo.com/news/Republic-Airways-Forms-Joint-bw-794256419.html?x=0&.v=1

The press release by the Mesa Air Group states both the go! and Mokulele Airlines brands will continue under the JV. Therefore both airlines will continue to operate under their brands although it unclear what aircraft Mokulele Airlines will operate.

finance.yahoo.com/news/Mesa-Announces-Joint-Venture-prnews-1012591534.html?x=0&.v=1

Republic Airways reports a $14.1 m 2Q profit

Republic Airways Holdings (Indianapolis) reported a net profit of $14.1 million in the second quarter, representing a decline of 18.2 percent.

Press release:

finance.yahoo.com/news/Republic-Airways-Holdings-bw-113213641.html?x=0&.v=1

Republic Airways to acquire Frontier Airlines

Please click on photo for full view, information and other Frontier photos.

Republic Airways Holdings (Indianapolis) has agreed to be the equity sponsor of Frontier Airlines’ (2nd) (Denver) plan of reorganization. The plan, which is subject to bankruptcy court approval and various conditions, would allow Republic to purchase 100 percent of the equity in the reorganized company for $108.75 million. If approved and completed, the plan will result in Frontier’s successful exit from Chapter 11, at which point it would become a wholly owned subsidiary of Republic Airways, along with Chautauqua Airlines, Republic Airlines and Shuttle America. The acquisition also includes Frontier’s Lynx Aviation subsidiary.

This announcement raises several possible scenarios if this acquisition is approved by the bankruptcy court.

1. Lynx Aviation is likely to be merged into Colgan Air (2nd).

2. Republic Airlines’ (2nd) Embraer ERJ 170s are likely to return to the Denver hub (and possibly other regional aircraft operated by Chautauqua Airlines).

3. A possible merger between Frontier Airlines and Midwest Airlines (which Republic has an interest).

One thing is guaranteed, there will be changes in Denver.

Shuttle America withdraws its last DL ERJ 170

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Shuttle America (Indianapolis) has now moved out the last Embraer ERJ 170 from the Delta Connection contract. All DL operations are now flown by by larger ERJ 175s.

Please see the Widgetheads link (lower right column) for more details.

Mokulele Airlines to start Honolulu-Hilo May 1

Mokulele Airlines (Kailua-Kona) will add the Honolulu-Hilo route on May 1. The new route will be operated by Shuttle America’s Embraer ERJ 170s.

Republic to become 50% owner of Mokulele

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Republic Airways (Indianapolis) is moving ahead to be a 50 percent shareholder of Mokulele Airlines (Kailua-Kona) through a restructuring of the Hawaiian carrier. New management will also take over at Mokulele. Republic’s Shuttle America operates its ERJ 170s for Mokulele.

Here is the full story via KITV in Honolulu:

http://www.kitv.com/money/18971543/detail.html

Republic to invest $40 million in Frontier

Republic Airways Holdings (Indianapolis) has pledged to invest further in Frontier Airlines Holdings, the parent of Frontier Airlines (2nd) (Denver) and Lynx Aviation. Upon approval of the bankruptcy court, Republic will supply $40 million in debtor in possession (DIP) funding. Frontier filed for Chapter 11 reorganization on April 10, 2008. Republic is the holding company for Chautauqua Airlines, Republic Airlines (2nd) and Shuttle America.