The Republic Agreement

[BoeingBoy]

The actual agreement is now available on the Donlin, Recano, and Company website:

Republic Agreement

I'm just starting to wade through it (it's 62 pages long) but thought I'd put this out since I'm sure many MDA folks are wondering....

"Preferential Hiring.
Republic will comply with the terms of Letter of Agreement #91 to the US Airways – ALPA Collective Bargaining Agreement with respect to the flight crews currently employed by US Airways’ EMB-170 Division (“Mid-Atlanticâ€￾), and will offer preferential hiring to any flight attendants and mechanics currently employed at Mid-Atlantic. Furthermore Republic will comply with such Letter of Agreement #91 associated with any additional aircraft."

Jim

 

[USA320Pilot]

BoeingBoy:

Thanks for posting this information.

Regards,

USA320Pilot

 

[700UW]

Preferential hiring, doesn't say they will automatically be hired.

 

[TBONEJ4J]

"Preferential Hiring.
Republic will comply with the terms of Letter of Agreement #91 to the US Airways – ALPA Collective Bargaining Agreement with respect to the flight crews currently employed by US Airways’ EMB-170 Division (“Mid-Atlanticâ€￾)......

Jim

[post="256149"][/post]​

LOA 91 makes a sharp distinction about what happens when MDA Aircraft are Sold and when there is a change in control of MDA.

It seems to me that there will a concerted effort by US Airways and Republic to make this an Aircraft Sale event, thereby needing only to comply with the J4J 50/50 staffing of the sold Aircraft. Not all MDA Pilots will go with the Airplanes and neither will the MDA Contract. Those are the Terms of LOA 91 with respect to currently employed flight crews.

But, as per LOA 91, if there is a "Change in Control of MDA", then ALL the currently employed Flight Crews must go with the Aircraft and the Contract goes with them. Also, any seniority integration must be done in accordance with the Allegheny/Mohawk LPPs.

The company wants this to look like a sale of aircraft, but they are really unloading the entire MDA operation. This is a change of MDA control, not a sale of Aircraft. ALPA must fight to have this interpreted as a Change in Control of MDA. The entire MDA pilot group has a lot to lose if it is interpreted otherwise. 😛h34r:

 

[sfb]

For what it's worth, the various purchase prices are as follows:

DCA/LGA commuter slots: $51.64 million less legal fees and expenses
Owned EMB-170 aircraft: $44.0 million less depreciation and accrued maintenance, plus paydown of mortgage debt between now and closing date. Republic also assumes the mortgages which currently stand at $169.4 million.
EMB-170 simulator, door trainer, spare parts, tooling: $14.5 million
Leased EMB-170 aircraft: Republic agrees to assume the existing leases; there appears to be no significant monetary consideration involved.

As for the ALPA-represented pilots at Midatlantic, I would bet money that the mainline pilots would be perfectly happy to throw them under the bus as long as it keeps the mainline gravy train rolling along a bit longer.

 

[USA320Pilot]

TBONEJ4J:

ALPA and its legal staff are already looking at this -- ALPA has some leverage here. I am not going to comment further.

Regards,

USA320Pilot

 

[BoeingBoy]

TBONEJ4J,

I believe you are right - this will be treated as a sale of assets. Additionally, the sale agreement calls for the transfer of 3 aircraft per month (if I'm reading it right), which means Republic (or Chataugua) will be able to keep up with any training requirement.

As much as I hope ALL MDA employees who desire to get to go with the planes, I fear not all will (or maybe only as a new-hire for some).

Jim

 

[USA320Pilot]

Republic Could Get Embraers, Valuable Slots In US Air Deal

ARLINGTON (Aviation Daily) - Republic Airways Holding plans to become the second U.S.regional carrier to make an investment deal with US Airways that could help the bankrupt airline emerge from Chapter 11 this summer,while Republic boosts its fleet of Embraer 170s and wins access to valuable East Coast airport slots.

Three weeks ago,Air Wisconsin subsidiary East- shore Aviation signed a deal with US Airways to invest $125 million in the airline,about half of what US Airways needs to emerge from Chapter 11 (DAILY, Feb.23).Late Monday,US Airways unveiled a second,complex deal with Republic that includes a $125 million investment and a restructured jet services agreement.The court will review the deal and likely make a decision at the March 31 hearing.

The first part of the agreement includes an amendment of the existing jet service deal with Republic- owned Chautauqua Airlines.US Airways will cut the compensation it pays to Republic by about 3%on the existing fleet of 35 Embraer ERJ-145s that it operates under the US Airways Express name.US Airways has a one-time option to pull five ERJ-145s from the existing Chautauqua agreement,and “under specific conditions,â€￾ US Airways has the right to pull an additional 10 ERJs from its operation.

The second part of the deal is an option for US Airways to get $110 million in financing by selling Republic 10 Embraer 170s aircraft currently owned by US Airways and three 170s scheduled for delivery. US Airways also will assign to Republic the leases for an additional 15 170s.“Republic would also work with US Airways to locate an Embraer heavy maintenance facility at an agreed-upon location within the US Airways network,â€￾ Republic said..

Republic would enter a new regional jet service agreement that would have it operate the 170s in the Express network.Also included in the possible asset sale is a sale/leaseback agreement for 113 valuable commuter slots at Washington National and 24 commuter slots at New York LaGuardia worth about $52 million. “At any time during the term of the slot sale/leaseback agreement,US Airways will have the right to repurchase the LaGuardia and Washington slots at a predetermined price â€￾ after it emerges from Chapter 11..

After the effective date of US Airways ’ Chapter 11 plan of reorganization,in the event that US Airways has not exercised the slots sale/leaseback option, Republic will have an option to buy or assume leases of all 28 170s and fly them as US Airways Express.“In the event that US Airways draws down the equity commitment,Republic,at the request of US Airways, may purchase,finance and operate as US Airways Express an additional 22 Embraer 170 and 190 aircraft,â€￾ Republic said.

The third part of the agreement is a conditional commitment from Republic Airways Holdings and its minority shareholder Wexford Capital to invest $125 million in new equity after US Airways emerges.

 

[USA320Pilot]

Jack Stephen, US Airways ALPA Communications Committee Chairman said, the "MEC is currently evaluating this deal (US Airways-Republic) and its impact on the provisions of LOA #91 as it pertains to Attachment B of the LOA, specifically, Authority in the Event of Sale or Lease of Participating Wholly Owned Carrier Aircraft or MDA Aircraft. We will be providing more information in the coming days," Stephen said.

See Story

Regards,

USA320pilot

 

[markkus757]

Mesa will pony up any day now. The three regionals will either merge or split the company up and go about their own ways. A320 will be working for them in the near future. I hope you like commuting to ABQ so you can fly the EAS on a B1900.

 

[BoeingBoy]

A320 will be working for them in the near future. I hope you like commuting to ABQ so you can fly the EAS on a B1900.

[post="256280"][/post]​

Haven't you heard? He's leaving the company before I am (meaning within the next 20 months) and will be making twice what he and I are (unclear whether that is individually or combined). Must be true because he said it.....

Jim

 

[funguy2]

Haven't you heard? He's leaving the company before I am (meaning within the next 20 months) and will be making twice what he and I are (unclear whether that is individually or combined). Must be true because he said it.....

Jim

[post="256285"][/post]​

Probably as an airline "analyst", like other pilots-turned-analysts... Let's see, I think there is a guy name Cordle that did that...

 

[usairways_vote_NO]

Probably as an airline "analyst", like other pilots-turned-analysts... Let's see, I think there is a guy name Cordle that did that...

[post="256291"][/post]​

So will 320 not be on his own list of accepted analysts? What a joke he is.

 

[passed_over]

now you know how it feels to be treated like a bastard stepchild as have the wholly-owned pilots for many many years good luck to you and yours

 

[Swaayze]

I don't really see why Republic would not want to bring over the trained pilots of MDA. I'm sure they'll get approval for a short course (ie Indoc and a couple of sims) thereby saving themselves lots of $$$. The only real risk would be if U ever recalls pilots, and some whining from CHQ F/O who feel they are entitled to those new seats.