Originally Posted by
Sumtinwong
Just so we are clear, the new contract didnt send Republic to bankrupcy. I'm sure their guys can chime in but my understanding of filing bankrupcy is to do what Mesa did, shed unprofitable aircraft. The contract should stay. I think Republic will come back pretty strong after this.
Do you know how bankruptcies work?? The company (nor the union) does not get really any say on what contracts to keep and what to amend/scrap. The creditor's committee has a great deal of say in what happens to various contracts. They will demand that all parties make some cuts and I would be willing to bet the pilot contract will not survive unscathed. I highly doubt they will go back to their old contract, but a 5-10% cut across the board would not surprise me in the least. Creditors will demand that wages are closer to the industry average, and since republic is currently near the top, that only means they will likely go down. (Thanks to pay at Mesa, Envoy, PSA, etc, that are bringing the average down)
RAH will be a stronger company when it emerges from bankruptcy. I have no doubt about that. However, unfortunately, past precedence shows the pilot group will feel some pain.