Republic Air To Reorganize Via Bankruptcy Part 2

qf789 · Mon Apr 25, 2016 5:05 pm

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Republic Air To Reorganize Via Bankruptcy (by LatAmFlyer Feb 25 2016 in Civil Aviation)

viasa · Tue Apr 26, 2016 7:45 am

I've seen that 17 aircrafts had been ferried to Rome. Not sure where the three others (N805MD, N809MD and N814MD) are. Any idea?

MGASJO · Tue Apr 26, 2016 2:46 pm

Quoting viasa (Reply 1):
(N805MD, N809MD and N814MD) are. Any idea?

N805MD still flying. Today doing PHL-CMH
N809MD. Flew LGA-CMH 2 days ago
N814MD. Flew PHl-PIT 2 days ago.
Maybe they are setting them up for storage there?

bahadir · Tue Apr 26, 2016 3:24 pm

Quoting MGASJO (Reply 2):
N805MD still flying. Today doing PHL-CMH
N809MD. Flew LGA-CMH 2 days ago
N814MD. Flew PHl-PIT 2 days ago.
Maybe they are setting them up for storage there?

If you go through court documents you will see that these are financed through different parties, not GECAS.

washingtonflyer · Thu Apr 28, 2016 1:52 pm

So on the AA side, have there been a lot of cancellations at Eagle owing to the withdrawal of these aircraft? These birds probably flew 6 segments a day which is a lot of turns.

miaskies · Thu Apr 28, 2016 2:00 pm

Quoting washingtonflyer (Reply 4):
So on the AA side, have there been a lot of cancellations at Eagle owing to the withdrawal of these aircraft? These birds probably flew 6 segments a day which is a lot of turns.

Not really, I am based in LGA. A lot of our operations were 170 flying but literally within the last week it has all gone to 175 76 and 80 seaters. Which truthfully has been blessing, newer birds, more first class seats etc.

washingtonflyer · Thu Apr 28, 2016 2:17 pm

The 175s have 8 and the 170s had 9. At least every one that I flew on...

Is there a new version that has 12?

MGASJO · Fri Apr 29, 2016 4:22 pm

Quoting washingtonflyer (Reply 6):
The 175s have 8 and the 170s had 9. At least every one that I flew on...

Is there a new version that has 12?

170s have 9 First class. 175s have 12

miaskies · Fri Apr 29, 2016 5:52 pm

Quoting MGASJO (Reply 7):
170s have 9 First class. 175s have 12

Correction:

Legacy US 170: 9F 60Y
Legacy US 175: 8F 72Y
Legacy AA 175: 12F 64Y *these are the newest birds

Contracts are being worked out to see if the legacy US 175's are kept in the same configuration or if retrofitted to the new AA 175 configuration which is more premium heavy.

LAXintl · Wed May 04, 2016 3:06 pm

Court approved revised agreement with Delta yesterday.

Highlights include:

o A consensual wind-down of single-class 50-seat flying agreement
o Full settlement of litigation and related claims between Delta and Republic
o Affirmation of dual-class flying agreement for 30 E170 and E175 aircraft
o Increased reimbursement rates in the single- and dual-class agreements that reflect the true cost of flying
o Compensation for certain slots in LGA and DCA
o Incremental liquidity in the form of a $75 million Debtor-in-Possession (DIP) loan

=

ScottB · Wed May 04, 2016 4:14 pm

Quoting LAXintl (Reply 9):
Court approved revised agreement with Delta yesterday.

Highlights include:

A very important highlight is that Republic also granted Delta an unsecured pre-petition claim of $170 million, which will give them considerable sway over the reorganization as one of the company's largest unsecured creditors. Shades of the game RAH played with its unsecured claim against Frontier...

toltommy · Wed May 04, 2016 4:39 pm

Is there anything in the mainline pilot contract that would prevent Delta from owning a second regional? What about Endeavor's ALPA contract? The 9E pilots get guaranteed mainline interviews, right? I'm not sure they'd want another regional pilot group getting the same.

Dash9 · Wed May 04, 2016 4:48 pm

No words on RAH CS300 order? Anyone knows if it is considered an asset (discounted price as launch customer, some down payment already paid) or a liability?

-Dash9

DiamondFlyer · Wed May 04, 2016 4:49 pm

Quoting toltommy (Reply 11):
Is there anything in the mainline pilot contract that would prevent Delta from owning a second regional?

If you think United and American would sit idly by and let Delta buy up a carrier that flies both more for AA and UA, you're out of your mind.

-DiamondFlyer

toltommy · Wed May 04, 2016 4:55 pm

Quoting DiamondFlyer (Reply 13):
If you think United and American would sit idly by and let Delta buy up a carrier that flies both more for AA and UA, you're out of your mind.

AA and UA sat idly by when DL proposed providing DIP financing. Neither carrier made a counteroffer to the court, did they? AA and UA and in the back of coach on this one right now. RAH can reject the agreements with both carriers if they want. And if their DIP financing provider tells them to reject the agreements, there's not a lot RAH can do. And if you don't think DL would use this opportunity to park a significant number of their competitors regional fleet....

LAXintl · Wed May 04, 2016 5:19 pm

Delta has no interest in RAH besides seeing it to health.

There recently was an internal news story about rumors DL might want to acquire RAH and it was made clear by the DL VP they see RAH as a solid partner and want see them remain as an independent operator.
Additionally it was pointed out there are large differences between the RAH and Pinnacle BK's, and just by sponsoring DIP financing does not mean DL has intentions of buying RAH. Matter of fact DL is not even taking part in the development of RAH POR (Plan of Reorganization).

lhcvg · Wed May 04, 2016 5:48 pm

Quoting dash9 (Reply 12):
No words on RAH CS300 order? Anyone knows if it is considered an asset (discounted price as launch customer, some down payment already paid) or a liability?

It would certainly be considered an asset to someone like DL!

flightsimer · Thu May 05, 2016 3:55 pm

Quoting LAXintl (Reply 9):

While the court approved it, a rejection/appeal was filed just 38 minutes later by credit/share holders, so it really is not a done deal yet.

LAXintl · Thu May 05, 2016 5:36 pm

Quoting flightsimer (Reply 17):
While the court approved it, a rejection/appeal was filed just 38 minutes later by credit/share holders, so it really is not a done deal yet.

Of course they will object. The Ad Hoc Equity Committee (AHEC) has been objecting since day one, and will remain opposed to anything the company likely proposes. This a small group of equity holders of Republic stock which will largely be wiped out so they instead seek priority claims.

What really matters is that the Unsecured Creditor Committee (UCC), the Federal government trustee and company are all on the same page and agree that the motions are for the benefit of the enterprise and puts its on the way to successful exit from BK.

BK courts have wide discretion and generally give great benefit of doubt to the company involved, and this case the parties objecting are really nothing more than nuisance motions.

toltommy · Thu May 05, 2016 5:49 pm

Quoting lhcvg (Reply 16):
It would certainly be considered an asset to someone like DL!

Not necessarily. It would depend on the pricing. BBD wasn't as "motivated" to discount heavily back then. I bet DL got a screaming deal if we could compare the 2 orders.

Dash9 · Thu May 05, 2016 5:59 pm

Quoting toltommy (Reply 19):

Not necessarily. It would depend on the pricing. BBD wasn't as "motivated" to discount heavily back then. I bet DL got a screaming deal if we could compare the 2 orders.

That make sense. Maybe this order is worth something depending on how much deposit was already made by RAH and how early the delivery slots are.

LAXintl · Sat May 07, 2016 1:47 am

Federal district judge ruled against the AHEC holdouts and while they can continue appealing it will not prohibited RAH from proceeding forward adopting the Delta agreement.

lhcvg · Sat May 07, 2016 4:47 am

Quoting toltommy (Reply 19):

Agreed. I was admittedly thinking purely on the value to BBD if RAH were to cancel the order -- they would offer to take the orders off of RAH's hands, but as you said if the price is contractually pegged higher than DL's deal perhaps that doesn't play out. But if there were cancellation penalties or such my thought was that the C-series order might be a useful asset in the bk proceedings, particularly given how little clarity there is about just how they could use them.

floridaflyboy · Sat May 14, 2016 3:00 pm

On track for single operating certificate by 12/1. Shuttle America will disappear into the history books. Kind of sad, but totally logical for RAH.

http://aviationweek.com/awincommerci...-seeks-single-certificate-december

flightsimer · Sat May 28, 2016 1:11 am

United and Republic have come to a tentative agreement! Two down, one to go.

Pretty much more money for all current flying with possible additional flying through extensions of current contracts and additional future E175 deliveries.

http://www.businesswire.com/news/hom...nited-Airlines-Reach-Comprehensive

floridaflyboy · Tue May 31, 2016 12:00 pm

Quoting flightsimer (Reply 24):

United and Republic have come to a tentative agreement! Two down, one to go.

Pretty much more money for all current flying with possible additional flying through extensions of current contracts and additional future E175 deliveries.

The E175s are the originally ordered but yet undelivered aircraft that RAH was saying they would have difficulty gaining financing for. They were originally scheduled to be delivered continuously over most of this year. Deliveries have been pushed back while RAH re-evaluated the situation in bankruptcy. The UA agreement will provide the company with "financing options" to get the aircraft back on a delivery path. Exciting news to see aircraft deliveries will begin again.

LAXintl · Mon Jun 06, 2016 2:41 pm

Republic Airways’ executive-bonus plan could face headwinds
http://www.ibj.com/articles/58867-re...ve-bonus-plan-could-face-headwinds

=

While retention and incentive bonus are common for executives and other key employees, lets see what creditors say and if they oppose the court filing.

floridaflyboy · Tue Jun 07, 2016 1:25 pm

Quoting LAXintl (Reply 26):
While retention and incentive bonus are common for executives and other key employees, lets see what creditors say and if they oppose the court filing.

Especially, given that RAH is already meeting or exceeding the prescribed targets. Hardly "incentive" unless the incentive is to retain and not to improve.

knope2001 · Wed Jun 08, 2016 2:19 am

Looks like the Columbus MX base gets the ax, with 161 employees out.

http://www.bizjournals.com/columbus/...-161-jobs-in-columbus-closing.html

[Edited 2016-06-07 19:56:26]

miaskies · Wed Jun 08, 2016 2:45 am

Quoting knope2001 (Reply 28):
http://www.bizjournals.com/columbus/...-161-jobs-in-columbus-closing.html

Correction...CMH MX not the CMH Base. FA/Pilot base is still open.

knope2001 · Wed Jun 08, 2016 2:59 am

Quoting miaskies (Reply 29):
Quoting knope2001 (Reply 28):
http://www.bizjournals.com/columbus/...-161-jobs-in-columbus-closing.html

Correction...CMH MX not the CMH Base. FA/Pilot base is still open.

Crap...I usually misspell "maintenance" and was going to just type "mx" but I did neither. Original has been fixed.

INFINITI329 · Wed Jun 08, 2016 8:08 am

I wonder if they will contract that work out or just increase their other mx bases.

floridaflyboy · Wed Jun 08, 2016 12:44 pm

Quoting INFINITI329 (Reply 31):

I wonder if they will contract that work out or just increase their other mx bases.

The two c-check lines in CMH will be outsourced to other MRO providers. The MCI mx base is also closing. That work will be dispersed to the other bases.

knope2001 · Wed Jun 08, 2016 1:38 pm

Quoting floridaflyboy (Reply 32):
The two c-check lines in CMH will be outsourced to other MRO providers. The MCI mx base is also closing. That work will be dispersed to the other bases.

Thanks for the further information! Do you know offhand what Republic mx bases are currently planned to be in operation when the dust settles?

miaskies · Wed Jun 08, 2016 3:08 pm

Quoting knope2001 (Reply 33):
Thanks for the further information! Do you know offhand what Republic mx bases are currently planned to be in operation when the dust settles?

In late June the two heavy maintenance lines that are currently operating in CMH will be moved to our MRO providers. The maintenance that was being performed in MCI will be transferred to existing Republic maintenance facilities in SDF, PIT, CMH, and IND.

knope2001 · Wed Jun 08, 2016 3:30 pm

Quoting miaskies (Reply 34):
The maintenance that was being performed in MCI will be transferred to existing Republic maintenance facilities in SDF, PIT, CMH, and IND.

Is CMH keeping a Republic MX operation, then? Losing the two heavy maintenance lines but picking up work currently being done in MCI?

floridaflyboy · Thu Jun 23, 2016 8:33 pm

Not sure yet how to quote on the new site. But, to the poster above me, CMH will maintain the other functions outside heavy MX for the time being. There are, however, facilities issues about to rear their ugly heads (not related to the bankruptcy), so we will see how big it winds up being at the end of the day.

Republic Air To Reorganize Via Bankruptcy Part 2

Republic Air To Reorganize Via Bankruptcy Part 2

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