Republic Airways Expects to Exit from Bankruptcy Soon

by San Antonio Attorney

Republic Airways Holdings Inc. announced that it anticipates leaving Chapter 11 bankruptcy early next year.

Republic, which declared bankruptcy in February, said on Nov. 9 that it has submitted its restructuring plan with the approval of its creditors committee.

Republic, a regional carrier that has around 5,200 employees, operates roughly 850 flights for United, Delta and American.

A nationwide shortage of pilots, in addition to the disagreement with its pilots, forced Republic to slash its schedules and failed to perform its commitments to the bigger airlines.  Even after Republic and its pilots had settled last year, the shortage of pilots continues.

Its reorganization plan under Chapter 11 states what the airline has accomplished so far and how it is going to manage going forward.

Republic has reached new deals with United, Delta and American.  Also, it has reorganized its fleet of jet and the debt contracts on that fleet.

The reorganization plan also states some changes that are about to happen.  The airline will make available new common stock.  It will have 50 million shares.  Around 20 million of those shares will be issued.

Republic is preparing to rationalize its operations in a single air carrier permit.  At present, Republic and its subsidiary Shuttle America Corp have separate permits.

The airline is requesting to relinquish its Shuttle certificate and run its whole fleet under the name of Republic Airline Inc.   This motion is scheduled for a court hearing on Nov. 28, and the company expects to finish the integration before February 2017.

The newly restructured company will be managed by a board of directors, including Republic CEO Bryan Bedford.  A total of seven members of the board will be chosen by the creditors committee.  The reorganization plan states that Bedford is required to perform services on the new board for a minimum duration of one year.

Leave a Comment

Previous post:

Next post: