Republic Airways Files For Bankruptcy

Posted on March 2, 2016 linda strong aviation news

Republic Airways, the American airline holding corporation which is based in Indianapolis, Indiana, has recently announced that they will be filing for Chapter 11 bankruptcy protection as they plan to leave behind lease deals on various regional jets. As one of the largest regional airlines in the United States, Republic Airways’ decision will be imperiling to their order for 40 Bombardier C Series narrow-body aircrafts. The airline accounts for nearly 16 percent of the total firm order backlog for the 243 C Series jet, making Republic Airways one of the largest C Series customers.

The decision to file for bankruptcy comes after several months of efforts to reevaluate what the airline characterizes as “out of favor” aircrafts. In addition to this struggle, the airline has also been experiencing a shortage of pilots due to their unwillingness to fly for the wages offered by Republic Airways.

“We worked hard to avoid this step,” said the CEO and chairman of Republic Airways, Bryan Bedford. “It’s become clear that this process has reached an impasse and that any further delay would unnecessarily waste valuable resources of the enterprise. Our filing today is a result of our loss of revenue during the past several quarters associated with grounding aircraft due to a lack of pilot resources, combined with the reality that our negotiation effort with key stakeholders shows no apparent prospect of a near-term resolution.”

The subsidiaries of Republic Airways, Shuttle America and Republic Airlines, fly a combined fleet of around 240 aircrafts for all three major United States legacy carriers. This includes the 41 fifty-seat Embraer ERJ-145s for code-share partner Delta Air Lines.

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