Originally Posted by
BoilerUP
How does RAH own $91M of Comair?
Why would RAH want a bunch of old CRJs that aren't compatible with their current fleet outside of the 20ish CRJs flying for CAL?
Besides, the one thing RAH pilots have is a great scope clause and senior members of the pilot group vividly remember the Republic Airlines 1 struggle during the 2003 negotiations.
On March 13, Republic had said its Chautauqua Airlines and Shuttle America operating units obtained the $91 million pre-petition claim in exchange for Delta's surrender of warrants on about 3.4 million Republic shares.
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Republic Airways to purchase 2 Million shares for $41 Million
Mon Mar 19, 2007 4:39PM EDT
March 19 (Reuters) - Airline holding company Republic Airways Holdings Inc. (RJET.O: Quote, Profile, Research) said it would purchase 2 million of its common shares from WexAir LLC, a former majority shareholder, for $41 million.
The shares will be purchased at $20.50 a share and the transaction will be completed on or before March 21, the company said in a statement.
(Reporting by Anant Vijay Kala in Bangalore
You asked that same question before to someone and here was their reply.
Follow the money. RAH buys back stock from Wexford to the tune of 41 mil. Then an unnamed company/person buys the Delta debt for 44 mil a couple of weeks later (read Wexford). Now Wexford has a 91 mil debt credit to use against Delta comming out of bankruptcy and Delta has said that Comair might be on the block.
If RAH bought Comair they would fall under the RAH CBA and scope. If Wexford buys Comair they are a seperate company (controlled by the same people). They tried the same thing with CHQ and Shuttle before they were forced to merge.
Plus with talks of Delta doing a merger, again, they might try and off load Comair in the deal. I only refered to them as RAH casually because Wexford/Republic are two halves of the same brain. BB has a habit of really taking it to someone when they are down on their luck. Take a look at the US Airways deal.