Originally Posted by
Koolaidman
Then why the lawsuit?
There is no lawsuit. Republic has filed a claim of 250 or so million against Frontier. This means Republic has told the bankruptcy court that Frontier owes it lots of money for terminating the codeshare agreement early. Republic does not expect to receive the full 250 million. First, the bankruptcy judge will award, at some point down the road, Republic an amount he sees fit to compensate RW for lost revenue. Likely this will be less than half of what Republic has asked for, especially if new homes are found for the 17 aircraft. Next, Republic will take the actual award and sell it on some market for a fraction of its value. 40 to 50 cents on the dollar would be considered a good sale. In the end, Republic could wind up with 70 or so million.
The new hires were "terminated" out of simplicity. By that I mean paperwork had not even been processed for most of them, and the company does not want to pay furlough benefits to someone who has been on property for less than a month. Is that the right thing to do? No, but quick and harsh decisions are being made, and those decisions will be revisited in grievence form. Since paperwork was not yet complete, I doubt anything negative would show up on employment histories.