RAH files for Chapter 11 bankruptcy
02-25-2016, 12:57 PM
#1
Gets Weekends Off
Thread Starter
Joined APC: Dec 2006
Position: Reclined seat
Posts: 629
RAH files for Chapter 11 bankruptcy
Republic Airways Files for Bankruptcy Protection in New York - Bloomberg Business
Short-haul carrier Republic Airways Holdings Inc. filed for creditor protection in New York Thursday.
The first large U.S. airline bankruptcy since American Airlines filed in 2011 comes at a time when major carriers have been reporting record profits for at least two years.
Indianapolis-based Republic operates a fleet of under-80-seat planes, which provide flights for larger airlines including American Airlines Group Inc., Delta Air Lines Inc. and United Continental Holdings Inc. It had been working on re-negotiating contracts with the bigger carriers after its pilots approved a new three-year contract. The carrier warned even after gaining the labor agreement that its future wasn’t secure.
“Republic has serious challenges that we must still address and several quarters of recovery and rebuilding ahead of us,” Chief Executive Officer Bryan Bedford said on a November conference call.
The company offers regional passenger service with more than 1,200 flights daily to more than 100 cities in 39 states and Canada.
Republic reported 19 percent drops in its block hours, seen as a proxy for revenue, in December and January. It listed $2.97 billion in liabilities and $3.56 billion in assets in Chapter 11 papers in Manhattan federal court.
The case is In re Republic Airways Holdings Inc., 16-10429, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
The first large U.S. airline bankruptcy since American Airlines filed in 2011 comes at a time when major carriers have been reporting record profits for at least two years.
Indianapolis-based Republic operates a fleet of under-80-seat planes, which provide flights for larger airlines including American Airlines Group Inc., Delta Air Lines Inc. and United Continental Holdings Inc. It had been working on re-negotiating contracts with the bigger carriers after its pilots approved a new three-year contract. The carrier warned even after gaining the labor agreement that its future wasn’t secure.
“Republic has serious challenges that we must still address and several quarters of recovery and rebuilding ahead of us,” Chief Executive Officer Bryan Bedford said on a November conference call.
The company offers regional passenger service with more than 1,200 flights daily to more than 100 cities in 39 states and Canada.
Republic reported 19 percent drops in its block hours, seen as a proxy for revenue, in December and January. It listed $2.97 billion in liabilities and $3.56 billion in assets in Chapter 11 papers in Manhattan federal court.
The case is In re Republic Airways Holdings Inc., 16-10429, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
02-25-2016, 01:06 PM
#4
Gets Weekends Off
Joined APC: Jun 2014
Posts: 679
This will likely cause a lot of people to head for the exit. Keep your options open and now you can check the BK box for your airline e career.
02-25-2016, 01:06 PM
#6
Gets Weekends Off
Joined APC: Feb 2012
Position: 787
Posts: 3,202
The 145s are most likely done by summer if not sooner.
The Q400s are most likely done by summer if they are not already?
CSeries order will be gone.
The fleet will shrink so hold on tight.
Also the contract you signed on to work under will most likely get gutted.
Good luck RAH pilots
02-25-2016, 01:07 PM
#7
Line Holder
Joined APC: Nov 2015
Position: Right
Posts: 82
Thanks
Sent from my iPhone using Tapatalk
02-25-2016, 01:07 PM
#8
Gets Weekends Off
Joined APC: Apr 2007
Posts: 490
02-25-2016, 01:09 PM
#9
Gets Weekends Off
Joined APC: Aug 2014
Posts: 845
Honestly, I wouldn't be too worried about this. All they are trying to do is shed previous debt commitments. They still have plenty of funds to operate on a normal basis and said that no present contracts were going to be terminated
Republic Airways Holdings Inc. and Subsidiaries File for Chapter 11 Reorganization | Business Wire
02-25-2016, 01:10 PM
#10
Gets Weekends Off
Joined APC: Feb 2012
Position: 787
Posts: 3,202
I would be out doing interviews for sure. You don't have to take the job but you need a plan B now more than ever. And if you just started you are giving up nothing to take another job at a more secure carrier.
RAH has furloughed pilots while they were still in INDOC. They will do it again if they need too. Bedford does not care about you or your family.
RAH has furloughed pilots while they were still in INDOC. They will do it again if they need too. Bedford does not care about you or your family.
Thread
Thread Starter
Forum
Replies
Last Post
