Republic to make Last, Best, Final offer to pilots

Based on the Teamster's response, Republic is said to be considering a Chapter 11 filing.

Not being able to pay a recruiting bonus is going to cause them to start missing performance guarantees, and the majority of their CPA's have rates locked in until 2019 thru 2025, so any raises they get can't be offset thru increasing the rates they're paid by UA, DL, and AA.

All that seems to be far more of a threat than a bankruptcy filing would be.

RJET owns about 200 aircraft, 140 of them E175's, 50 E145's, and the balance are Q400's. Those can easily be leased out and maybe even maintained, since RJET has somewhat extensive maintenance capabilities.

Also, the contracts with DL and UA have put/pull clauses, so the aircraft could be unloaded if needed.

This could be one of those situations where the sum of the parts exceeds the value of the enterprise as a going concern.
 
The impact on various mainline carriers could be significant if Republic files for BK but that possibility has been building for quite some time.

Even though the legacy carriers and LCCs have started to slow down their growth that has been pulling regional pilots to the majors, Republic still has enormous commitments for new as well as existing flying.

DL and UA do own many of their large RJs which means placing the aircraft at other carriers is possible, esp. if they are able to convince other regional carriers to park some smaller RJ aircraft and instead put those crews on larger aircraft. This could all lead to a massive refleeting in the regional sector for DL and UA which were planning to do it anyway.