RAH and Hawaii

TallFlyer

Well-Known Member
As someone posted on another site, "I wonder if there will be a flow through to 'mainline?'"

Official press release is here.
 

meyers9163

Well-Known Member
I guess I dont understand. This airline has Caravans and now they are going to make enough money with the current price of fuel to pay RAH money to fly those jets? I just dont know how this will work. Even if only 4 planes. God pitty those poor flight crews forced to fly these routes.
 

MusketeerMan

Well-Known Member
I guess I dont understand. This airline has Caravans and now they are going to make enough money with the current price of fuel to pay RAH money to fly those jets? I just dont know how this will work. Even if only 4 planes. God pitty those poor flight crews forced to fly these routes.
No one is being forced...every pilot that's going to HNL bid for it and was awarded it. I'm not sure if you left out the sarcasm tag, but I certainly don't pity these guys. Home every night...in Hawaii. Man, in another time and another place, I'd have bid this in a heart beat!

Go!'s contract is not being renewed, so there must be some evidence that this will work and the need is there. With Aloha gone, we may be able to fill some of that gap as well.
 

SoCalAprch

Well-Known Member
Press release:

Republic Airways to Operate Embraer 170 Regional Jets for Hawai'i's Mokulele Airlines

INDIANAPOLIS--(BUSINESS WIRE)--

Republic Airways Holdings Inc. (NASDAQ: RJET) announced today that its Shuttle America subsidiary was selected by Mokulele Airlines of Hawai'i to operate four, 70-seat Embraer 170 jets under a 10-year capacity-purchase agreement beginning Nov. 19, 2008. Mokulele Airlines will schedule, price, distribute and promote all of its flights, including those operated by Shuttle America.

"We look forward to bringing our dependable, award-winning service to the beautiful islands of Hawai'i, and we are especially pleased to be partnering with Hawai'i's locally owned Mokulele Airlines," said Bryan Bedford, Chairman, President and CEO of Republic Airways. "Mokulele's passengers are sure to enjoy the spacious, dual-class cabin of one of the industry's most comfortable and passenger-friendly jets."

"As a local Hawaiian airline that has been serving the Island since 1997, we are grateful for the significant support we received from our local business and resort communities, which is making this expansion possible. Mokulele Airlines is pleased to be able to offer our passengers the expanded service and convenience made possible by the addition of the E170 jet aircraft to our growing Inter-Island network," said Mokulele Airlines CEO Bill Boyer.

Key commercial terms of the agreement include:

1. Mokulele will purchase all capacity at predetermined rates and
will directly pre-pay or reimburse Republic for industry
standard pass-through costs, including fuel.

2. The first two aircraft are expected to be placed into service
on November 19, with an additional two aircraft planned to
enter revenue service during the spring of 2009.

3. The agreement has a term of 10 years from the date of the first
aircraft delivery.

4. Republic will provide up to $8.0 million in direct financing to
Mokulele in the form of a line of credit, which can be
converted, at Republic's option, up to 45% of the common stock
of Mokulele

Republic Airways, the parent company of Shuttle America, is the world's largest operator of Embraer's E-Jet family of aircraft, which includes the E170. Mokulele passengers will appreciate the remarkable spaciousness of the E170, including its large windows, and more comfortable seating and wider aisles. The innovative fuselage design maximizes cabin width at elbow and shoulder level to create a spacious interior designed to increase passenger comfort.

The distinctive four-abreast arrangement guarantees no more middle seats, allowing all guests on board either an aisle or window seat, which also improves cabin comfort. All overhead bins can easily accommodate large carry-on bags. In fact, the E170 offers up to 28% more total stowage volume per seat when compared to other similar-capacity narrow-body jets.

Republic Airways Holdings, based in Indianapolis, Indiana is an airline holding company that owns Chautauqua Airlines, Republic Airlines and Shuttle America. The airlines offer scheduled passenger service on approximately 1,200 flights daily to 99 cities in 34 states, Canada, Mexico and Jamaica through airline services agreements with six U.S. airlines. All of the airlines' flights are operated under their airline partner brand, such as AmericanConnection, Continental Express, Delta Connection, United Express, Midwest Connect and US Airways Express. The airlines currently employ approximately 4,400 aviation professionals and operate 233 jet aircraft.

Source: Republic Airways Holdings Inc.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Republic Airways Holdings' business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.
 

Polar742

All the responsibility none of the authority
RAH is a billion+/yr company. Ukelele airlines yearly revenue is proabably a week of RAH revenue. Who's really calling the shots?

It's a deal structured to "comply" with BB's business model of being a fee-for-departure company.

Just a WAG though.....

4. Republic will provide up to $8.0 million in direct financing to
Mokulele in the form of a line of credit, which can be
converted, at Republic's option, up to 45% of the common stock
of Mokulele
 

Kingairer

'Tiger Team' Member
Yup. THis is BB getting his feet wet at having his own airline, while at the same time having the same " fee for departure" thing to make investors happy.
 

meyers9163

Well-Known Member
No one is being forced...every pilot that's going to HNL bid for it and was awarded it. I'm not sure if you left out the sarcasm tag, but I certainly don't pity these guys. Home every night...in Hawaii. Man, in another time and another place, I'd have bid this in a heart beat!
On FO pay, FA pay, and regional CA pay? Plus are you getting any non rev bennies to make it back to mainland?
 

SoCalAprch

Well-Known Member
On FO pay, FA pay, and regional CA pay? Plus are you getting any non rev bennies to make it back to mainland?
If I wasn't tied to the 145 I would have bid it, my wife wanted to go to. Its an experience that lots of people including myself have always wanted to do. We have backpacked through Europe with two changes of clothes and a couple hundred bucks, I don't see moving to Hawaii for a year or so any different. Probably isn't the best financial decision but neither was becoming a pilot in the first place. Sometimes you gotta live life to its fullest and not think about every little consequence and how its going to effect you 60 years from now. On your death bed those are the experiences you are going to remember.


On another note we have a Captain that is sailing his home (guess he lives in a sail boat) to Hawaii. That would be frigen awesome. Very jealous of that guy.:nana2:
 

ppragman

FLIPY FLAPS!
When I wasn't being paid to sit in hawaii (not as fun as it sounds) they insured me that as soon as their check airmen passed, and the summer was over, they'd have twin otters. That was what was going to happen because twin otters would be the perfect plane for this. Take anything they say with a grain of salt, the company may cooperate, but its not entirely as functional as it might seem. I don't see them going from caravans to RJs quite yet. They didn't have the crews when I was out there.
 

Trip7

Well-Known Member
I guess I dont understand. This airline has Caravans and now they are going to make enough money with the current price of fuel to pay RAH money to fly those jets? I just dont know how this will work. Even if only 4 planes. God pitty those poor flight crews forced to fly these routes.
Fuel is 70 bucks a barrel homie:D
 

MusketeerMan

Well-Known Member
I don't see them going from caravans to RJs quite yet. They didn't have the crews when I was out there.
Ummm...the crews (our current pilots) are in bridge training now and the planes are being painted as we speak. If you mean by not yet as right now, you're correct...but come Nov. 19th, the flights start. The crews won't be there until shortly before, obviously.
 

meyers9163

Well-Known Member
Fuel is 70 bucks a barrel homie:D
Guess we will wait and see. Although only 4 planes it seems like an xjet branded type of thing. That didnt work very well. Great product but fuel killed them in the end. Although the E170 can carry 64 pax (how they have it designed), it will take a full plane it seems to make these route come close to making money if not break even. Who knows, just seems like a risky venture.
 

SoCalAprch

Well-Known Member
When I wasn't being paid to sit in hawaii (not as fun as it sounds) they insured me that as soon as their check airmen passed, and the summer was over, they'd have twin otters. That was what was going to happen because twin otters would be the perfect plane for this. Take anything they say with a grain of salt, the company may cooperate, but its not entirely as functional as it might seem. I don't see them going from caravans to RJs quite yet. They didn't have the crews when I was out there.
What kind of crews. To the best of my knowledge these are just Shuttle America pilots and FAs going to hawaii and flying under the Mokulele name. I don't understand what you mean by saying "they" don't have the crews. We aren't selling them the planes.

I think Bedford has a plan that involves taking Mesa out of the picture. No proof but just a hunch... I think he figures if he can run Go! out of Hawaii then the airline will go BK and won't be able to get any sort of exit financing and thus be forced to liquidate. This obviously opens up alot of flying for everyone to pick at... And I can see him seeing Mesa as struggling thus making it an easy target. This is purely my own stupid reasoning... Take it for what its worth.
 

CamYZ125

Well-Known Member
I think he figures if he can run Go! out of Hawaii then the airline will go BK and won't be able to get any sort of exit financing and thus be forced to liquidate.
Only thing is, go! has never been anything but a liability to MAG. As far as I know, it's always been bleeding MAG's cash reserves, and still isn't profitable even with Aloha gone. I don't think eliminating go! would do anything more than keep more money in MAG's pockets.
 
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