Republic to Operate 12 Embraer E170 Jets for Midwest!

CRJDriver

Well-Known Member
Republic Airlines to Operate 12 Embraer E170 Jets for Midwest Airlines
Wednesday September 3, 5:00 pm ET
-- Republic Provides $15 Million in New Financing to Midwest
-- Air Services Agreement Can Convert to Long Term Aircraft Lease at Midwest's Option

INDIANAPOLIS--(BUSINESS WIRE)--Republic Airways Holdings (NASDAQ: RJET - News), announced today that its Republic Airlines subsidiary has signed an agreement with Midwest Airlines to provide 12, 76–seat Embraer E170 jets operating as Midwest Connect with initial service beginning October 1, 2008.


“We are very pleased to partner with the Midwest Airlines team and look forward to a mutually beneficial relationship,” said Bryan Bedford, Chairman, President and CEO of Republic Airways.

“Republic is a partner that can help position us for a return to sustained profitability and future growth, deploying an aircraft that is fuel efficient, state of the art and strategic for this new energy environment for the U.S. airline industry,” said Timothy E. Hoeksema, Midwest Airlines chairman and chief executive officer. “We look forward to working with the Republic team in this new partnership.”

Key commercial terms of the agreement include:

1. Under the Airline Service Agreement (“ASA”), Midwest will purchase all capacity at predetermined rates and will directly pay or reimburse Republic for industry standard pass-through costs.

2. The first aircraft will be placed into service on October 1, 2008 and the last aircraft on November 15, 2008.

3. The agreement has a term of ten years. However, at Midwest’s option, and at any time prior to June 1, 2010, Midwest can elect to convert the ASA into a long term aircraft lease. The 12 E170’s would be leased from Republic for the remaining duration of the ASA and operated on the Midwest Airlines operating certificate.

4. All fuel will be purchased directly by Midwest and will not be charged back to Republic.

5. Republic made a one year term loan to Midwest in the amount of $15.0 million, with an additional loan commitment of $10.0 million, based on the achievement of certain milestones.

6. The loan(s) is collateralized by all of Midwest’s unencumbered assets and generally be senior to other lender’s security position.

About Republic Airways

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 111 cities in 34 states, Canada, Mexico and Jamaica through airline services agreements with five U.S. airlines. All of the airlines’ flights are operated under their airline partner brand, such as AmericanConnection, Continental Express, Delta Connection, United Express and US Airways Express. The airlines currently employ approximately 4,600 aviation professionals and operate 230 regional jets.

www.RJET.com

In addition to historical information, this release contains forward-looking statements. Republic Airways may, from time-to-time, make written or oral forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements encompass Republic Airways’ beliefs, expectations, hopes or intentions regarding future events. Words such as "expects," "intends," "believes," "anticipates," "should," "likely" and similar expressions identify forward-looking statements. All forward-looking statements included in this release are made as of the date hereof and are based on information available to Republic Airways as of such date. Republic Airways assumes no obligation to update any forward-looking statement. Actual results may vary, and may vary materially, from those anticipated, estimated, projected or expected for a number of reasons, including, among others, the risks discussed in our Form 10-K and our other filings made with the Securities and Exchange Commission, which discussions are incorporated into this release by reference.

http://biz.yahoo.com/bw/080903/20080903006477.html?.v=1
 

meyers9163

Well-Known Member
Oh no! Did they just give away 15 million? I dont know if this is a good business move for RAH. But great news for the furloughs! Hope to see them back soon now! But this means Midwest guys on the street and RAH guys back flying? Midwest has about 150 who will be on the street, asking their group for pay cuts and now this. I just dont understand this crap!
 

N826AW

Snooki's Baby Daddy
Midwest also announced they are returning 16 717s to Boeing and will utilize the replacement jets to cover the flying.
 

bike21

9-5 Ruins Lives
Hmmm...reading through it all it sounds like this to me...

Republic will operate the 12 airplanes for now, then Midwest will train their own crews and lease the 170s from Republic. So for the Republic flight crews this is only a 'temporary' thing, at least on paper and how I read it.
 

Trip7

Well-Known Member
Good news for Republic but I fear they left one sinking ship(Frontier) for another...
 

Dan208B

Well-Known Member
The big problem with this as well is that it's in violation of our scope clause at republic. Our scope says any airplanes leased from RAH must be flown by our pilots...
 

CRJDriver

Well-Known Member
Well, the Midwest guys aren't very happy...

Here is YX ALPA's Response

Midwest Pilots Express Outrage at Airline’s Deal with Republic Airways


MILWAUKEE—Captain Jay Schnedorf, chairman of the Midwest Airlines unit of the Air Line Pilots Association (ALPA), issued this statement today following Midwest Airlines’ announcement that it had secured commitments from Republic Airways Holdings. As part of the deal, Midwest announced that Republic flightcrews would fly 12 EMB 170s as Midwest Connect, beginning October 1, 2008, directly replacing all but nine of the Boeing 717 aircraft flown by Midwest pilots.



“This is catastrophic news for our pilot group and for all Midwest employees. Management’s plan to replace all but nine of our B-717s with EMB 170s and replace Midwest pilots with Republic pilots will have a devastating impact—raising the number of Midwest pilots who are out of work to approximately 300 of the some 400 pilots who were employed before TPG/NWA purchased the airline earlier this year. Furthermore, management restated its continued intent to wring drastic, draconian concessions from our pilots, holding our very jobs hostage as part of its deal with Republic.



“Midwest pilots are outraged that management is using such underhanded tactics and further decimating this airline. We are putting management on notice that they cannot hold a gun to our heads and deal with our pilot group in this manner. We strongly believe that management’s actions are a repudiation of its contract with us, and we are exploring all of our options to protect our pilots and hold management accountable for the deal it made with us in 2000 and the concessions we made during our company’s restructuring in 2003.



“A year ago, CEO Tim Hoeksema stated publicly that the deal with TPG/Northwest would ‘be good for our airline, the employees, and the community.’ Make no mistake: with this latest deal, Mr. Hoeksema, TPG, and Northwest have revealed their complete disregard for this airline and its employees. Today marks a dark day in the history of Milwaukee, Wisconsin, as management has essentially sounded the death knell for Midwest Airlines and the reputation the employees have built for providing the ‘best care in the air.’”



ALPA is the bargaining representative for the 400 pilots at Midwest Airlines. Founded in 1931, ALPA represents 53,000 pilots at 37 airlines in the United States and Canada.
 

IrishSheepdog

Sitting in the median
Wow... No offense, but this is about as close to flying struck work as you can get without actually flying struck work. The paycuts that Midwest management have been demanding are absolutely ubsurd... So now the pilots will be let go and replaced by Republic E-175s? Unreal.

Yet another example of a once great airline run into the ground from piss-poor management.
 

zmiller4

Well-Known Member
Wow... No offense, but this is about as close to flying struck work as you can get without actually flying struck work. The paycuts that Midwest management have been demanding are absolutely ubsurd... So now the pilots will be let go and replaced by Republic E-175s? Unreal.
:yeahthat: X 1000.
 

meyers9163

Well-Known Member
The big problem with this as well is that it's in violation of our scope clause at republic. Our scope says any airplanes leased from RAH must be flown by our pilots...
Well then lets hope this piece of #### doesnt happen. Plain and simple its BS and no one should care about RAH scope. To be honest if anything RAH should be happy they are able to lease these planes in the long run instead of having to pay for them to sit around and do nothing. Its better for the company to have these flown and get paid for them flying then to sit around and force RAH to pay for them. In the end the real story is many Midwest guys are without JOBS! And by this announcement it appears more of our brothers will probably never get their jobs back. Midwest is a small group in the 1st place and to throw this news ontop of things just add much more fuel to the fire. Let alone the before mentioned pay cuts management of Midwest has asked for. Also the flying they have taken away from Skywest. Just a bunch of variables and none of which out weigh the scope in RAHs contract. Sorry dont take it personal just a lot more of the political BS that this industry brings!

For union guys... What power does ALPA have in this for the Midwest guys? Since they are a group of only 400 pilots, minus the 150 going to be furloughed leaves around 250. If 12 planes are flown by RAH and the Skywest flying, they have more pilots on the express carriers then they do mainline? TO me that just speaks volumes.

j4j perhaps? Seems like thats what they were trying to do with the CAL scope, get them to lighten it up and we'll help your pilots out (according a FO in CMH of mine).
 

Seggy

Well-Known Member
Good news for Republic but I fear they left one sinking ship(Frontier) for another...
I think it is horrific news all around.

The big problem with this as well is that it's in violation of our scope clause at republic. Our scope says any airplanes leased from RAH must be flown by our pilots...
I have heard many of your coworkers have hard ons to bring down CALs scope clause with the jet flying. Now you guys are crying? Give me a freaking break.
 

bike21

9-5 Ruins Lives
Agreed. This is a lose-lose situation for both Midwest pilots and the Republic pilots.
 

SlumTodd_Millionaire

Evil Landlord Capitalist
Hmmm...reading through it all it sounds like this to me...

Republic will operate the 12 airplanes for now, then Midwest will train their own crews and lease the 170s from Republic. So for the Republic flight crews this is only a 'temporary' thing, at least on paper and how I read it.
I don't think you're fully comprehending what's going on here. The proposed lease to MEH is contingent upon the MEH pilots signing a new contract before the end of the 18 month term. In other words, the RAH outsourcing is being used as a hammer to force the MEH pilots into taking a concessionary deal within 18 months in order to get those planes. If they don't take the deal, then they lose the flying for good and RAH keeps flying feed. This is nothing but a massive whipsaw.
 

Clocks

Well-Known Member
Here's what will happen...I can see the future.

People will complain, but no one will do anything about it. RAH pilots will be successfully used to break the Midwest guys one way or another. The race to the bottom will continue with every party involved holding up their hands claiming they are innocent bystanders.
 
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