PPRuNe Forums - View Single Post - Liberal Party wins, Bombardier wins
View Single Post
Old 2nd Mar 2016, 22:32
  #138 (permalink)  
galaxy flyer
 
Join Date: Dec 2002
Location: Where the Quaboag River flows, USA
Age: 71
Posts: 3,414
Received 3 Likes on 3 Posts
Hello Willie,

Cancelling existing commercial agreements would likely put Republic, or whatever 'new' name airline it chooses to call itself, in a position to do whatever it wants with whatever aircraft type it wants. I don't see how they could be held to existing scope clauses in cancelled agreements. Once they emerge from bankruptcy protection, we'll know where they're headed and whether or not scope will apply. Assuming they'd remain a regional airline with existing commercial agreements is merely that, an assumption. My assumptions are that they will either move on to something new, (as regionals will likely shrink in size or disappear) or they (Republic) might even cease to exist.
I never said that the scope clauses would apply IF Republic got out of the FFD contracts with main lines. What I speculated is they must maintain those alliances to have a business plan for the creditors to agree to leaving Chapter 11. If they presented to the creditor's committe a plan dropping their FFD contracts and become a start up with C-Series as the fleet competing with the very mainline so they had been contracted to, the creditors would gasp and start laughing uncontrollably. With record profits, DL, AA and UCH will kill 'em and the US ULCCs would box 'em in on the low cost side. There is no room for new players, just look at VA

GF
galaxy flyer is offline