Packrat

That should be the goal. Mainline needs to fly bigger jets with fewer departures to thin markets.

The perennial argument of those in favor of "Right to Work" legislation. The simple truth is crappy jobs generate more crappy jobs until there are none worth having.

RyanP

Even if they don't furlough, there will still be stagnation from losing aircraft. Then there will be the couple of years of complete uncertainty on everything else, uncertainty on the remaining fleet contracts, and the work group contracts WILL be altered. nobody gets off untouched in bankruptcy. How much? Who knows what they will come after, May be minor things with the pilots, may not be. If people think one specific group of the company gets off untouched in a bankruptcy, while everyone else gets hammered, you have got another thing coming. Why would a junior pilot stay and endure 2 years of that miserable volatile process on the "hope" that things just magically work out in their favor a couple years later, when there are better, more stable options out there right now?

I've been through it at Eagle and seen exactly how this game goes. I was fairly senior and didn't leave, should have instead of being downgraded twice, displaced multiple times and stagnating for years. It was very stressful times, with constant uncertainty, rumor, threats, consolidation, contract cuts, aircraft removals, low moral, massive stagnation and a small furlough. The junior guys I know that bailed are pretty much all way better off, and ahead of me in the game for staying. Pinnacle/Mesaba/Colgan people went through the same thing. I talk to many of them commuting about our similar experiences. Terrible stagnant place to be for years until things turned around. RAH will very likely be no different.

If you are junior I'd get out early. Not much of anything to lose by bailing before things inevitably get worse. I don't know ANYONE that says, gee, I wish I had stayed at that regional though bankruptcy.

Bonanzer

Rah's business model has always been to own the majority of the aircraft. They do lease some but not from the majors. The majority of the aircraft that rah has are registered to rah. Cpa not cba by the way. Saying that it says the major can assume ownership or leases is incorrect. No one knows what's in those cpa's. Those are a closely guarded secret.

Gjn290

That's what ASA/XJT have been doing since their merger.

BeatNavy

They own their planes like I own my house. The bank owns them. RAH secured financing for them. Do you really think if they outright owned that many $45 mil (or however much ejets cost) jets their market cap would only be $45 million?

Nantonaku

Exactly, best case scenerio they pull through this and become a stronger airline. But the next two years are not going to be fun for anyone. There are other worst case scenarios as well.

Bonanzer

Correct. My point is it's not a situation were delta, United, and American own the planes and can transfer them at their discretion. The cpa could very well have contingencies for transfer of the aircraft to the major airlines, but to say you know rah's cpa's has it is just asinine. Getting to see those cpa's is way above our pay grade.

Geardownflaps30

Actually said agreements were opened for all to see by reading the court documents from the recent Delta v RAH lawsuit. Hence my knowledge of what's in them.

Bonanzer

Ok. I'll look for it. I have never seen it. Can you post a link with the cpa details?

Name User

It's industry standard to state that a company "owns" its aircraft if they own the rights to them. In this case whether Republic leases the aircraft similar to a car lease or is paying down a note on them similar to a car note, they own the rights to the aircraft.

If you drove a company car, that car most likely would be leased and the lessee would be the company. You don't have any rights to that car. If you sign the lease yourself, you own the rights to the car. You are the owner in the view of the law (insurance), the state (taxes), etc.