Republic files Ch.11

[eolesen]

http://finance.yahoo.com/news/republic-airways-holdings-inc-subsidiaries-214500614.html

Republic chairman, president and CEO Bryan Bedford said the company had “worked hard to avoid this step,” but said efforts to renegotiate contracts with major US airlines for which it operates regional flights had reached an impasse. He cited a “nationwide pilot shortage” as a primary reason for Republic’s bankruptcy filing.

Unnamed sources are specifically singling out a particular airline which is not particularly known for playing well with its codeshare and alliance business partners, or retaining its membership in the industry's lobbying group...


http://atwonline.com/finance-data/us-regional-operator-republic-files-chapter-11-protection

 

[Kev3188]

I know 40ish planes is a not insignificant chunk of capacity, but if nothing else, I hope this means the end of E145 flying on behalf of said carrier...

 

[crazystnic]

Yeah bought it two weeks ago at 1.85.. was up to 3.44... when will i learn

 

[eolesen]

I know 40ish planes is a not insignificant chunk of capacity, but if nothing else, I hope this means the end of E145 flying on behalf of said carrier...

The purging of 50 and below seat capacity will continue as long as the pilot hiring guidelines stay impossibly high...

I thought that GLUX would have filed before RJET, but both appear to be on borrowed time.

 

[jimntx]

Considering the pay scales for commercial airline pilots, who would have ever thought there would be a shortage.  And, yes I realize that rj pilots don't make as much as mainline pilots, but quite a few of the rj pilots migrate to mainline at the first opportunity.  It's one of the main reasons why there is a shortage at the rj level.

 

[FWAAA]

Yeah bought it two weeks ago at 1.85.. was up to 3.44... when will i learn

All is not lost. Republic's bankruptcy has nothing to do with being broke or out of cash - it filed for Ch 11 protection because now it can unilaterally cancel contracts it views as no longer viable.

AA's Ch 11 was the first airline bankruptcy I could remember where the stock was not cancelled; might be that Republic's bankruptcy is the second time it happens.

 

[eolesen]

Agree. I'm almost tempted to let a couple hundred ride on this one, but as a rule, I don't invest in airline stocks unless they're given to me as a condition of employment...

 

[swamt]

Does anyone know who represents the mechanics of Republic?  Not sure if they are even represented by any union. I know when Frontier was sold to Republic, Frontier mechanics were represented by the ibt, just didn't know if they were able to spread through or over to the republic mechanics before getting Frontier sold off to Indigo.  

 

[eolesen]

Per the 10-Q, it looks like only the pilots are represented (IBT).

 

[xUT]

All is not lost. Republic's bankruptcy has nothing to do with being broke or out of cash - it filed for Ch 11 protection because now it can unilaterally cancel contracts it views as no longer viable.

Just following the lead...

AA's Ch 11 was the first airline bankruptcy I could remember where the stock was not cancelled; might be that Republic's bankruptcy is the second time it happens.

Yea, that surprised me as well. At least they were smart enough to avoid an ESOP...

 

[swamt]

Per the 10-Q, it looks like only the pilots are represented (IBT).

Ok. Thx for that  E.  

 

[topDawg]

http://finance.yahoo.com/news/republic-airways-holdings-inc-subsidiaries-214500614.html


Unnamed sources are specifically singling out a particular airline which is not particularly known for playing well with its codeshare and alliance business partners, or retaining its membership in the industry's lobbying group...


http://atwonline.com/finance-data/us-regional-operator-republic-files-chapter-11-protection

 not sure why its Delta's fault YX was to stupid to get a pilot contract done and they have staffing problems....... 
 

Agree. I'm almost tempted to let a couple hundred ride on this one, but as a rule, I don't invest in airline stocks unless they're given to me as a condition of employment...

It has been a good time to play short with them.