Republic dishes out more dough
 

Heard you guys may not get bonuses this year? Maybe they could have used a fraction of this money and refrain from furloughs for a year or so. If I was one of the guys put on the street I'd have a hard time reading this without being a tad peeved




Republic Airways to Provide up to $35 Million of Loans to US Airways: Financial News - Yahoo! Finance



INDIANAPOLIS--(BUSINESS WIRE)--Republic Airways Holdings Inc. (NASDAQ: RJET - News) announced today that it has entered into a loan agreement with US Airways to provide up to $35 million in two tranches. The first tranche of $10 million was funded on October 20, 2008. At US Airways’ option, and subject to certain other conditions, the second tranche of $25 million may be funded in the first quarter 2009. Interest will be paid quarterly, with the principal amounts to be repaid between October 2009 and October 2011.ADVERTISEMENT
if(window.yzq_d==null)window.yzq_d=new Object(); window.yzq_d['COVDB0PDoHs-']='&U=13ff0tasm%2fN%3dCOVDB0PDoHs-%2fC%3d674272.13012008.13219522.1435155%2fD%3dLREC %2fB%3d5405003%2fV%3d1'; http://us.bc.yahoo.com/b?P=cb7DVEwNc...405003%2fV%3d1“US Airways and Republic have enjoyed a successful partnership for nearly 35 years,” said Republic President and CEO Bryan Bedford. “Through this partnership and over that time, we have developed a mutually beneficial relationship that centers on a commitment to our customers, employees and shareholders. Our investment in US Airways’ today simply reaffirms our commitment to US Airways and its ability to continue managing through uncertain economic times for our industry.”
US Airways Express President Dion Flannery stated, “We are extremely appreciative of the commitment Republic is making today, and greatly value their support over our long-standing partnership. We will work diligently with them so that our customers continue to benefit from our partnership and we look forward to future success with this integral partner in the US Airways network.”
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 99 cities in 34 states, Canada, Mexico and Jamaica through airline services agreements with six U.S. airlines. All of the airlines' flights are operated under their airline partner brand, such as AmericanConnection, Continental Express, Delta Connection, Midwest Connect, United Express and US Airways Express. The airlines currently employ approximately 4,400 aviation professionals and operate 233 regional jets.

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If Republic was a chick I bet she'd be on the Maury show, man their in bed with everybody!

Hopefully we'll still the bonus. The bonus is profit sharing and the company has been making profit non-stop. This is investing on their part. BB's making a power play. Putting money in while the market's down. It's not like RAH has tons of cash that others don't.

Must be nice for the furloughed fella's to hear...

Investing? It didn't say they were buying stock did it? If it's just a loan I don't see how this could be considered investing. Yes they will make interest but I think this is far from an investment.

Furlough's are based on staffing levels not money. I wish it were different.

But if they have the money to found the pilots (lets face it, wouldn't cost that much) I think they should have shown a fraction of compassion and overlooked furloughing for awhile. There are other companies in the same situation that haven't laid off anyone yet...

The thing is RAH did do that. We started loosing the CRJ's, the F9 flying and the 135s ALL left unexpected. Well except for the CRJs. They also didn't furlough as many people. The Midwest and Mokulele is only absorbing the other pilots. Remember RAH has three certificates. For one pilot to be moved to another certificate they have to be retrained. Some of my CHQ buds that bid 170 bases for one reason or another are just now getting out of class. Those additional bodies will fill the short staffed illusion some bases are seeing. The bodies have been accounted for they've just been sitting in class getting retrained. At the time of the furloughs RAH did not have these other two contracts. They were furloughing based on future projections of aircraft at that time. UAL did the same thing recently.

Its called "hedging your bets".

Better to loan money now and help keep a profitable codeshare alive than it is to not loan money and have that revenue stream potentially dry up.

...and it should be obvious at this point that Bedford and Heller got some sort of benefit for RJET out of this transaction...

It is an investment because US Airways must return the loan (principal) plus a little bit extra (interest).

It's like saying a bond isn't an investment. You are loaning money to a company or a municipality.

I think it's a good move for Republic Airways Holdings. I wonder if they are gunning for the US Airways Mesa flying.

[quote=FlyingNasaForm; I wonder if they are gunning for the US Airways Mesa flying.[/quote]

As well as everyone else out there...can you underbidding war. :rolleyes:

im willing to bet that rah is going to get alot more than just intrest out of this deal. whether its more gates, 190's, mesa's flying, or some other juicy rumor you know they will get it. Bedford just doesnt give out money for nothing in return.

RAH is buying into Airways for the Mesa flying... March of '09 things will happen im sure... It would be an easy decision for Airways considering they would have to dish out $$$ for PSA/PDT to do it... Looking a lot like Air Whisky's move to me

Being one of the furlough'd, It's been interesting to say the least watching all the news coming from RAH. To be honest I'm kinda enjoying the break and the fact that I'll be home with my family for the holidays. Not that I wouldn't want to get back to work, but It'll be there when the time's right, I'm not in a race to get to any legacy right now, I guess everbody's situation is different. I hear alot of positive stuff where BB is concerned and how he's ran things here. It's not perfect, but what place is? Coulda picked a worse place to be furloughd from.

Keep in mind that US Airways has pilots on furlough. I think any additional flying at the regionals isn't going to happen. Mesa and US Airways marriage is going to end. Republic will pick up some of the flying but not all. Regional airlines are above the allowed limit for Large Regional Jets.
This might be good news for Republic pilots but it will be bad news for Mesa pilots. And as much as you may hate J.O. and Mesa, i am sure you have friends that work there that need their job. No Champagne here!

I can't wait until we're all oxen "yoked" to the Republic Wagon marching towards our own demise...

Also, US Air had great luck with AWAC owning a portion of them and having a seat on the board. Good Job US AIR...

dont kid yourself people... unless you have seen the stipulations of the loan you have no clue if BB wanted to just keep this airline afloat so they don't lose business or if he will get "guaranteed" flying out of the deal. When it is all said and done USair will pick the best but most importantly most affordable feed out there...happens time and time again. There are no gentlemans agreements or if you scratch my back ill scratch your back scenarios in the game.

......190's

RAH will do anything for flying as we have all seen in the last few months. its funny when you have a mesa guy in your jumpseat and he say that he likes RAH now due to the fact that more people talk trash on the RAH group than the do mesa! BB tryed to grow mesaba way to fast...they had a good contract and looked what happened. Doing the same with RAH and its bound to be bad...Remember RAH was supposed to hire 1200 pilots in 07. now there desperate to keep all that new pretty metal flying??????????

Go back to third grade and learn grammar.

Keep dreaming buddy.

Bedford put money into Airways to do all he can to help keep it afloat a little while longer. He is betting that the added money will keep them up a little longer until they find a "dance" (merger) partner or added capital.

Airways is furloughing and in midrange to long term trouble. Bedford is doing all he can to keep his biggest client secure. Airways does NOT take his money, with terms, without being in dire straights and without better options.

is airways really doing that bad. last time they got money from rah it included the mid-atlantic operation and lots of gate space. The money was then used to secure the merger (as i understand it). I know everyone is hurting but are they really hurting that badly?

Check out the LCC 10-Q issued today for yourself...

Thanks for sharing this with the others, Boiler!

For those not used to these statements, check out the risk factors for potential investors. There are some blanket scares that all airlines have but when you dig deeper, you see the true scenario. They NEED to have an economic change and investors or they are looking at a third bancruptcy and second in 4 years.

The problem is that any intelligent investor wouldn't touch this company with someone elses money. Airways is in midrange to long term trouble unless they somehow succeed in selling another swamp to the Alabama Teachers Pension Fund......god do I feel sorry for those folks. A handful of individuals sold them up the river.