Amends Existing E145 Capacity Purchase Agreement with Delta Air Lines
to Provide for One-Year Term on Seven Additional 50-Seat E145 Aircraft
INDIANAPOLIS--(BUSINESS WIRE)--Oct. 31, 2012--
Republic Airways Holdings Inc. (NASDAQ: RJET) today announced it has
reached agreements with several key stakeholders which, combined with
other initiatives taken, including placing idled aircraft back into
revenue service, will mitigate future negative cash flows at its
Chautauqua Airlines subsidiary on average by approximately $45 million
annually over the next five years.
“This is an important milestone in our Chautauqua restructuring effort,”
said Bryan Bedford, chairman, president and CEO of Republic Airways.
“These agreements take us about three-quarters of the way to our stated
need of $60 million in average annual cash flow improvements at
Chautauqua in order to stabilize and secure its future. We still have
approximately two-thirds of our small jet fleet of 70 aircraft operating
under capacity purchase agreements (CPAs) with less than two years
remaining, so we are focused on ensuring both our labor productivity and
long-term maintenance costs of these aircraft remain competitive.”
The Company also announced it has amended its CPA between Chautauqua
Airlines and Delta Air Lines to provide for the operation of an
additional seven E145 aircraft for a period of one year for each
aircraft. All seven aircraft are expected to be placed into service with
Delta before the end of 2012. Prior to the amendment, Chautauqua
operated a total of twenty-four E145 aircraft under a CPA which
continues through May 2016.
“The deployment of these seven aircraft, combined with our other recent
CPA activity, means we will have placed all remaining idle 50-seat
regional jet aircraft back into revenue service by the end of 2012.
Ensuring our 50-seat aircraft remain active under agreements with our
major airline partners is an important component of our Chautauqua
restructuring effort,” said Bedford.
The Company will have more commentary on these two developments on its
third quarter earnings conference call, which has been rescheduled for
Thursday, Nov. 1, at 1:00 p.m. EDT.
Republic Airways Holdings, based in Indianapolis, Indiana, is an airline
holding company that owns Chautauqua Airlines, Frontier Airlines,
Republic Airlines and Shuttle America, collectively “the airlines.” The
airlines offer scheduled passenger service on nearly 1,500 flights daily
to 132 cities in 45 states, The Bahamas, Canada, Costa Rica, Dominican
Republic, Jamaica, and Mexico under pro-rate agreements with Frontier,
and through fixed-fee airline services agreements with five major U.S.
airlines. The fixed-fee flights are operated under an airline partner
brand, such as AmericanConnection, Continental Express, Delta
Connection, United Express, and US Airways Express. The airlines
currently employ approximately 10,000 aviation professionals and operate
Source: Republic Airways Holdings Inc.
Republic Airways Holdings