Good luck Republic dudes and dudettes

Seggy said:
Actually, it is my business.

Unfortunately, there have been to many ALPA Volunteers that got sucked into a consulting or management roles that has led them to negotiate then against the pilots they once represented. So what are you 'consulting' these hedge funds and private equity firms about? What airlines are your clients interested in?
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You mean...like The Moak Group?
 
My educated guess is that the bankruptcy will only be on the Shuttle America certificate once the United flying is moved to the YX cert. They will then be able to dump all the Delta 145s/170s contracts while keeping the crews and going down to a single cert (gaining efficiencies). This will also help them avoid the rate reset with Delta when they can fly them for more money elsewhere. Also, they will probably shed some of the older MidAtlantic 170s if they don't start just flying them for AA/UAL on the YX cert.
 
ATN_Pilot said:
Is that even possible? Are their separate certificates setup as separate business entities?
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Nope.
My junior high education tells me, although the operating certificate are different, the holding company (RAH) would be the entity filing.

I doubt they will file, as they don't have anything to gain.
Status quo: they keep extremely cheap labor contract.
Chapter 11: a judge will most likely look very hard at the LBFO, and anything will be an increase in labor cost.

Vote in the "TA", and dudes will go from a Poopy contract to a polished turd contract.
 
Nark said:
Nope.
My junior high education tells me, although the operating certificate are different, the holding company (RAH) would be the entity filing.
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Technically you can take a subsidiary into bankruptcy while the parent company doesn't go in, but I'm not aware of RJET having separate subsidiaries for each of their operating certificates. I think it's one business entity, just with multiple air carrier certificates.

I doubt they will file, as they don't have anything to gain.
Status quo: they keep extremely cheap labor contract.
Chapter 11: a judge will most likely look very hard at the LBFO, and anything will be an increase in labor cost.

Vote in the "TA", and dudes will go from a Poopy contract to a polished turd contract.
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Yeah, this is where we disagree. They have a lot to gain. The judge will impose the LBFO through the 1113(c) process without a second thought, seeing as how it's not concessionary. The company is convinced that that higher first year pay rate is going to solve their staffing problem. They can also use the bankruptcy process to shed other liabilities and get creditors to accept less than full value on what they owe.

RJET is in trouble. It's not a sham. They need to solve their problems or they aren't going to survive.
 
Seggy said:
So far they only have consulted about stopping foreign based, state subsidized carriers from decimating the U.S. airline industry.
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Gotta love the three man team he has assembled.

He certainly made the most out of his time as President. Building up his personal brand and making the right connections. We shall see how effective he and his team are at their one subject area.

A secondary point though is that a number of folks provide consulting services to a range of clients. I recognize this may difficult for some to digest, but it isn't necessarily anyone's business who an individual who is a SME on __________ (insert subject x, y, or z, etc.) is providing professional services to.

Derg said:
Oh god.

That's the nightmare that keeps on, well… nightmaring.
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He clearly has his fanboys. Cheers to him. Like I said above. He did a few things well and it was building his personal brand, hiring people who could take with him (Robbins), and he now has many self made connections and direct connections by way of Robbins.

What comes of The Moak Group, I don't know, but it'll be interesting to watch play out. I don't see Moak having enough money to really recruit strong legislative talent from the countless very deep pocketed consulting firms inside the beltway, so I don't expect the experiment to last generations, if even a half a decade.
 
ATN_Pilot said:
I'm nearly certain it's 1 single holding group.
Yeah, this is where we disagree. They have a lot to gain. The judge will impose the LBFO through the 1113(c) process without a second thought, seeing as how it's not concessionary. The company is convinced that that higher first year pay rate is going to solve their staffing problem. They can also use the bankruptcy process to shed other liabilities and get creditors to accept less than full value on what they owe.

RJET is in trouble. It's not a sham. They need to solve their problems or they aren't going to survive.
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My point above, was a judge will impose the LBFO, because it's what the company wants, and hence a financial solution to the problem (hypothetical chapter 11 talk).
The dispatchers, FA's and MX have all agreed to a CBA in the last few years. They are happy in the eyes of the company. The pilots are the only holdouts, and are the target of the company's perceived misfortune. (We all know the truth in that).


Their biggest liability is lack of staffing for their aircraft.
The company knows FO's are bailing to other regionals for 2 reasons: pay and upgrade times, which equates to QOL issues.
Are senior FO's jumping ship to PSA and Compass from other regionals, like they are from RAH? I don't think in the same numbers.

Every pilot has to do a cost benefit analysis of this LBFO. The only significant pay changes are for those who are relatively junior. If the music stops, can they afford a 10-15 year stay at RAH?
 
This was a discussion, not an argument. If it was an argument I would have subtlety called him a name, like I do to @Seggy .

I'm doing what I can to throw a life line to my friends who are still there. I've moved on, and I'll be damned if I don't bring them along with me.
 
Nark said:
This was a discussion, not an argument. If it was an argument I would have subtlety called him a name, like I do to @Seggy .

I'm doing what I can to throw a life line to my friends who are still there. I've moved on, and I'll be damned if I don't bring them along with me.
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There seems to be a good number of RAH guys at my new shop, one in my class. Good guy, he was a check airman.
 
ATN_Pilot said:
They have a lot to gain. The judge will impose the LBFO through the 1113(c) process without a second thought, seeing as how it's not concessionary. The company is convinced that that higher first year pay rate is going to solve their staffing problem. They can also use the bankruptcy process to shed other liabilities and get creditors to accept less than full value on what they owe.

RJET is in trouble. It's not a sham. They need to solve their problems or they aren't going to survive.
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I think they have much to gain, but not on the labor side. RJET must pay about $4B in debt in FY16-17, and I don't see how they're going to do that without restructuring the debt.

The labor market really is interesting, but I think RJET has a flawed assumption in that higher first year pay is the key to solving their woes. Even if the contract is forced, it won't stem the workforce losses. The only thing that can make RJET better in the eyes of labor is them renegotiating their capacity purchase agreements with the majors and turning those gains into a better contract. That isn't likely to happen in the next few years.

You're right -RJET has major cash-flow issues. I see Chapter 11 happening only if they can't negotiate with creditors. GLUX has been able to restructure debt enough times that I think RJET still has many more plays left.

Unique to RJET, I'm curious if one of the three majors just decides to buy a piece of RJET to fix the reliability problem.
 
ATN_Pilot said:
I agree that increasing the pay may not solve their staffing problem. But RJET thinks it will.
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Seems to be a common theme among regional management. 9E has tried about 4 different things in the last 18-24 months thinking each one was the greatest thing since sliced bread and then acting bewildered when it doesn't work. EtD was my favorite one. The entire pilot group just LOL'd at that one!

The only one that seems to have had real impact though is a significant raise in the form of the retention payouts. Based on 75 hrs/month it amounts to around $45-47/hr for a new hire (really depends on hours credited/year). That being said I don't think RAH is too far off the mark in assuming pay will help their woes. The difference is 9E does still have some relatively decent work rules that RAH seems to be completely missing.
 
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