Story ID: GPrepublic05012017
Republic Airways Emerges from Bankruptcy
By: Gregory Polek
Caption: Finishes restructuring with single operating certificate, uniform fleet of Embraer jets
Word Count: 282
Indianapolis-based regional airline group Republic Airways Holdings has emerged from bankruptcy as privately held company following some 14 months of operations under Chapter 11 protection, the carrier announced on Monday. Now owned by “certain unsecured creditors,” Republic emerges as the world’s largest operator of Embraer E-Jets and the second largest regional airline in the U.S. The U.S. Bankruptcy Court of the Southern District of New York approved Republic’s reorganization plan on April 20. As of March 31, it operated a fleet of 170 E170/E175 dual-class aircraft and expects to expand its fleet by more than 10 percent during the remainder of this year with the delivery of 18 more E-Jets.

Since entering bankruptcy in February of last year, Republic entered into new fixed-fee contracts with mainline codeshare partners American Airlines, United Airlines and Delta Air Lines, shed all its Embraer ERJ-family regional jets and Bombardier Q400 turboprops and closed its Shuttle America subsidiary. It also restructured debt on 80 E-Jets and renegotiated agreements with several suppliers. The integration of Shuttle America into Republic Airline leaves the company with a single operating certificate. It closed its Chautauqua Airlines unit in December 2014.

“Today starts a new chapter for Republic,” said Republic CEO Bryan Bedford. “We entered this restructuring process with specific objectives: To restructure Republic into an airline that produces consistent and outstanding operational reliability; to simplify our business model in order to drive financial and operational efficiencies; and to ensure Republic remained an employer of choice for its current and future aviation professionals. I am pleased that we accomplished all of our restructuring goals timely. Our future success will be determined by how well Republic continues to deliver these competencies.”