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Republic files for Ch.11

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Republic files for Ch.11

Old 25th Feb 2016, 20:59
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Republic files for Ch.11


Interesting tactic. Certainly not subtle.
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Old 5th Apr 2016, 13:47
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ALPA addresses Republic "pilot shortage" vs bankruptcy:

"While some in the industry have alleged that a pilot shortage is behind Republic Airways’ recent bankruptcy filing, the airline’s own testimony refutes this assertion. In its bankruptcy filing, Republic stated that the company is restructuring to operate a single aircraft type and eliminate out-of-favor aircraft, rather than to reduce newly improved pilot salaries, which Republic’s president has publicly said is helping the company to retain its pilots."

ALPA: Airline Pilots In Strong Supply For Right Career Opportunity | Aero-News Network
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Old 6th Apr 2016, 09:52
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There has to be a price below which you can not operate an aircraft on a continuous basis. That price has to be known by most airlines in every country if the world. So you would have thought that the carriers Republic flew for would have been voicing their concerns about this operation well before they entered into Chapter 11. Or did they just not care? If I was one of the majors and one of my feeders was unable to provide its operation, it would affect my bottom line. Yet this was not monitored. One of the indicators of a struggling airline is a high pilot turnover. Pilots leave because their Terms & Conditions are unacceptable, yet the majors were unconcerned about that. But they forget whose name is on the ticket. So unless the majors take steps to improve the lot of pilots flying for their feeders they will never be sure these operations will perform as required.

What would really worry me is where else are the feeders saving money? I'm sure it's not just on the pilots. Cheap tickets might be economically good but dreadful for your health.
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Old 6th Apr 2016, 13:45
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The majors do pay attention:

"The DIP financing is part of a settlement Delta and Republic reached in the former's lawsuit filed in 2015. The suit alleged more than $1 million in economic damage from the regional carrier’s inability to meet its flying commitments."


High pilot turnover at the regional level is quite normal especially now when the big carriers are hiring like mad.
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Old 7th Apr 2016, 17:37
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It will be interesting to see how the regional airline business model in the US will strategically develop in the next few years.

If crew salaries keep increasing, seat mile cost will not make it viable anymore for the majors to have the production outsourced to smaller planes (seat count below scope).

It might well happen that a lot of flying on dense routes will go back to bigger tubes.

Which if it really happens begs the question how well producers of regional jets are positioned, if demand for their product collapses.
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Old 8th Apr 2016, 23:44
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If CPSM go up at a regional, they increase at a major as well. Regionals are also refleeting with larger regional aircraft such as the 175 which offer better economics than smaller aircraft. I think certain regionals will thrive, others will go away.
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