Republic Airways Files for Bankruptcy After Pilot Shortage

[timel]

http://www.bloomberg.com/news/articles/ ... n-new-york

[Nark]

As a former employee, that is such bullshit.

They were one of the only regional's to turn a profit when times were bad. Other regionals got better contracts and droves of FO's lat moved, and new hires stop showing up.

Further, they extended the E145 CPA for Delta, despite having a plan to staff the airplanes. They are going to unload the 145's and Q's at a faster rate, and become a lone 170/175 operator, probably merging the Republic and Shuttle America certificates.
Hopefully they don't dismantle the pilots (and others) CBA. I wouldn't be surprised if they change some language and work rules to weaken the contract.

I can think of several people who I wouldn't cry to see them fired.

[SuperchargedRS]

Cry me a river.

Don't want to pay what a pilot is worth, you're going to have a hard time getting pilots, or do they not teach that higher level of thinking in business school anymore?

[mbav8r]

Supercharged, did you read the article at all! It's fairly straight forward and obvious, they had to pay more to the pilots because of the shortage and were trying to get more from the airlines they provide service for, none of them played ball, now they will have to or get someone else.
Republic will also get some relief from the parked airplanes, I doubt they will dismantle the pilots new contract as they already recognize this was part of the problem.

[SuperchargedRS]

They had to pay more because they weren't paying a proper wage in the first place. And there is no shortage of pilots.

Too little too late.

[rxl]

As a former employee, that is such bullshit.


Hopefully they don't dismantle the pilots (and others) CBA. I wouldn't be surprised if they change some language and work rules to weaken the contract.

Dismantling of CBA's is usually one of the goals of Chapter 11 filings isn't it?
It's always sad to see good people who bust their butts day in and day out for a company get hurt in situations like this one.
Good luck to all.

[Nark]

It is generally, however strategically I don't think they will.
The pilot CBA was the crux of their failure to attract pilots. From friends still there, they are attracting pilots, on par with everyone else. Which is to say not as much as the good old days of 2005-2007.

If they can unload the 145 and Q planes (they are parking the Q's anyway, but this will accelerate it), they'll be sitting very well. (Staffing levels).
However like you said, this may be a strategic way of eliminating some of the extra $$$ of the CBA.

I would have been a 145 captain had I stayed, so for narcissistic reasons I'd be interested to see where I would have ended up.

[rxl]

It is generally, however strategically I don't think they will.
The pilot CBA was the crux of their failure to attract pilots. From friends still there, they are attracting pilots, on par with everyone else.

So let's see ... If the CBA is the reason for Republic's failure to attract pilots, one could reasonably assume that it is substandard in comparison to other regional carriers' CBAs. You go on to say, however, that they are still able to attract pilots on a par with other regional airlines. If this is the case, then the whole mess truly is bull shit and only provides evidence that there is NO pilot shortage.
Like ALPA says, it's NOT a pilot shortage but a pilot PAY shortage.

By the way, do Republic and Shuttle America both use the call sign "Air Shuttle"? Just curious.

[mbav8r]

Honestly, does anyone read the bloody article they're commenting on!!!!

"The new contract helped shore up the pilot base, but higher pay meant Republic had to get more compensation from Delta, American and United, according to Dan Akins, a Golden, Colorado-based aviation consultant."
They're using bankruptcy to negotiate with their customers and leasing companies, if they decimate the recently signed contract with the pilots, they're back where they started, not able to put pilots in the seats.
Bottom line if, Delta, American, etc. Hold their ground, they'll be looking for another carrier to fly 16% of their regional lift

[timel]

Honestly, does anyone read the bloody article they're commenting on!!!!

"The new contract helped shore up the pilot base, but higher pay meant Republic had to get more compensation from Delta, American and United, according to Dan Akins, a Golden, Colorado-based aviation consultant."
They're using bankruptcy to negotiate with their customers and leasing companies, if they decimate the recently signed contract with the pilots, they're back where they started, not able to put pilots in the seats.
Bottom line if, Delta, American, etc. Hold their ground, they'll be looking for another carrier to fly 16% of their regional lift

Who could replace Republic Airways if they fail to renegociate their contract under chapter 11?
Obviously they all seem to lack of cheap pilots, it seems legit that fees to operate regional carriers have to go up. The big guys have to share the wealth.

[AOW]

By the way, do Republic and Shuttle America both use the call sign "Air Shuttle"? Just curious.

Nope. Republic is "Brickyard" and Shuttle America is "Mercury".

"Air Shuttle" is Mesa.

[springlocked]

Unless you have been there through affiliation with ALPA most Canadians have no idea how labour or should I labor relations work south of 49. We sit here happy with reasonable labour laws to protect us while there it's all about the collective agreement, totally with management always trying to end run it in someway, especially at the connector, fee for departure service.

The changes to the licensing requirements for the right seat 121 did bring pressure on the this level of carrier since now an ATP was required for right seat. This increased their fixed costs and from what I gather they are trying to use the chapter 9 lever to try and offset this. The railway act down there is far worse than out federal labour laws here.

[oldncold]

the biggest issue to solve there "perceived" lack of pilot is the USA immigration there are thousands of experienced pilots from ICAO countries like Canada that attend fight safety and the like that meet the minimum legal requirements. ( usually far beyond) and Canada being part of NAFTA one would think would have a strategic leg up in times of shortages but not so fast the onerous 7 -8 yr process to get a green card to legally work there .


IF and that s a big if the USA wants to alleviate the regional suffering it surely can by the ceo's of these companies lobbying the ins to allow qualified Canadians and Brits to be given 3yr green cards with job offer even if you put some condition on it better than parking planes imho

[goingnowherefast]

Holy punctuation, that was hard to read!

Anyway, wouldn't ALPA be protectionist of American pilot jobs for American pilots? The same way we are of Canadian pilots for Canadian pilot jobs.

[timel]

More details:

http://www.usatoday.com/story/travel/fl ... /81035522/

"Essentially, they're trying to find a way to right-size their business, both in terms of the number of airplanes they have and the types of airplanes they operate,"

....

Although Republic has committed to maintaining pay and benefits to all employees during its Chapter 11 process, Harteveldt is skeptical Republic can compete against other airlines for pilots.

...

Republic also is on the hook for 40 midsize planes it ordered from Bombardier when Republic still owned Frontier Airlines and was planning for expansion. Republic sold Frontier in 2013, leaving it with no use for the estimated $3 billion order for planes that don't fit into its existing operations.

...

This is not a typical bankruptcy in the sense that this is not a company that would go out of business tomorrow," said Seth Kaplan, the managing partner of Airline Weekly, a trade publication that covers the industry. "They seem to feel that they're on an unsustainable path because they're stuck with all these airplanes and contracts that they just can't find the pilots to (fly)."

[Stinky]

the biggest issue to solve there "perceived" lack of pilot is the USA immigration there are thousands of experienced pilots from ICAO countries like Canada that attend fight safety and the like that meet the minimum legal requirements. ( usually far beyond) and Canada being part of NAFTA one would think would have a strategic leg up in times of shortages but not so fast the onerous 7 -8 yr process to get a green card to legally work there .


IF and that s a big if the USA wants to alleviate the regional suffering it surely can by the ceo's of these companies lobbying the ins to allow qualified Canadians and Brits to be given 3yr green cards with job offer even if you put some condition on it better than parking planes imho

That won't happen because congress is already well aware that there is no actual shortage and the so called "shortage" was created by the airlines themselves. Google "GAO pilot shortage report" It was a report prepared by and for the government to determine whether or not there was a shortage. The findings were that there are plenty of pilots and no shortage now or in the future.

[timel]

Yep, the pilot shortage is pure RAA propaganda

[tbaylx]

This week, the Envoy Air MEC voted unanimously to approve a first officer retention bonus program beginning March 1, 2016. The $10,000 annual bonus will be paid "quarterly" for two years to all active first officers.

"For many months we have worked very closely with management to mold a framework acceptable to our pilots and the MEC," said Capt. Sam Pool, Envoy MEC chairman. "We believe this is a positive step from AAG management, and we hope that this means AAG finally recognizes that the financial landscape has changed in our industry and that compensation drives new hires. There is no shortage of airline pilots, only a shortage of airline pilots willing to work for food-stamp wages. We hope these positive changes continue."

The Envoy MEC remains committed to making further enhancements to its collective bargaining agreement sought after by, and demanded by, prospective pilots. "Only with continued improvements will a sufficient number of new pilots choose Envoy," Pool said, "which will in turn provide the staffing needed for more aircraft, more opportunities for our F/Os to upgrade, and captains to flow as promised."


Good to see the tables begin to turn in our favor.