Republic Airways Files for Chapter 11 Reorganization
US regional carrrier Republic Airways Holdings Inc. has filed for Chapter 11 Bankruptcy Protection.
The Indianapolis-based short-haul carrier, which feeds flights to American Airlines Group Inc, Delta Air Lines Inc and United Continental Holdings Inc brands, reports Republic and its subsidiaries will continue normal business operations while restructuring the company’s finances and contractual relationships.
“We worked hard to avoid this step,” said Bryan Bedford, Republic’s chairman, president and chief executive officer. “Over the last several months, we’ve attempted to restructure the obligations on our out-of-favour aircraft – made so by a nationwide pilot shortage – and to increase our revenues. 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 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 negotiating effort with key stakeholders shows no apparent prospect of a near term resolution.”
Republic Airline and Shuttle America Corporation offer approximately 1,000 flights daily to 105 cities in 38 US states, Canada, the Caribbean and the Bahamas. The airlines currently employ about 6,000 aviation professionals.