Republic 1st quarter
 

INDIANAPOLIS--(BUSINESS WIRE)--Republic Airways Holdings Inc. (NASDAQ: RJET - News) today reported operating revenues of $608.7 million for the quarter ended March 31, 2010, an 87.1% increase, compared to $325.3 million for the same period last year. The increase in revenues is due to the acquisition of our branded carriers during 2009. The Company also reported a net loss of $36.5 million, or $1.06 per diluted share, for the quarter ended March 31, 2010, compared to $2.2 million of net income, or $0.06 per diluted share, for the same period last year.
During the first quarter of 2010, the Company’s pre-tax loss of $58.5 million was negatively impacted by an $11.5 million, non-cash impairment to write off the Midwest Airlines trademark and reduce the carrying value of other assets. The Company also recorded a total of $13.1 million of expenses related to the integration of the branded business and the return of Q400 and CRJ aircraft. Also, the severe winter storms in the first quarter of 2010 had an estimated $7.5 million negative impact on pre-tax results.
Excluding all non-recurring items and the impact of the storms, the Company’s pre-tax loss was $26.4 million as presented in the table below:


How about losing butt in MKE and DEN

Not an unsurmountable loss but when you consider they're operating an entire airline almost exclusively with inexpensive RJs and ridiculously cheap labor, I have to wonder how they'll become profitable with Frontier. Hopefully they can strengthen their brand now that they aren't concerned with Midwest and can start cranking up the advertising to attract customers. Particularly those not looking for the absolute cheapest ticket on Orbitz (read: Business travel)

man you guys are just chomping at the bit to see us fail. amazing

Cash on hand increased $35.5M and debt decreased $30M during the quarter.

Restricted cash however increased 46.7M. Unrestricted decreased from 157.5M to 146.3M. Just a small portion of the overall financials though.

Indeed...

If RJET sustains these kinds of losses over 3-4 quarters then I think the haters will have something to cheer about...but a few one-time acquisition-related charges and expenses jacking up the GAAP loss shouldn't be directly construed as "Their time is limited because SWA & AT are kicking their arses".

Earnings call in 7 min.

Agreed. Thank you, Boiler. RJET buys two troubled brands....there was a reason YX and F9 were in the financial straits they were. A turnaround is not a 1 or 2 quarter undertaking, especially for a company with no real experience doing anything but operating fee-per agreements with majors. Alot harder when you actually have to do market research, sell tickets, answer to customers, etc.

YES SIR!!!!!!!!!!!!!!!!!!!!!!!!!!

With RAH only having about 147M in unrestricted cash, they don't have too many quarters to get revenue and costs under control. The fixed fee will help offset, but with the 18% decline from that segment in the last year, it seems harder to manage. The next quarter will be the telling one IMO.

We're all doomed!!!!!!!1!111111!!!!!!!!1!

I wonder if anybody here has actually looked deep at the reports to see that almost all of the loss was from the returns of the CRJ's and the Q's...??

Doubt it. Carry on.

I could see how a portion of the GAAP 70M loss on the branded side could be attributed to the Qs, but I don't see how the CRJs would play into that side on the breakdown.

After looking at the numbers, RAH reported only a 13.1M expense related to both integration of the branded business AND the return of Q400 and CRJ aircraft. It was a seperate expense and not included in the 70M loss on the branded side. The fixed fee to bring in 14.3M in income.

Returning the Qs was/is a dumb move...IMO. And not just because I flew them.

I looked a little closer

There were two one time charges, $11.5 million for the branded side and $13.3 million for returning aircraft (both the Qs and CRJs). Taking that into account branded operations still lost over $40 million.

BB also claimed $7.5 million negative weather affect but I wouldn't call that a "one time charge" because Denver will always have weather issues, it'll just vary year to year.

Though to be fair the $13.3 million should be split between both branded (Q-400s) and the FFD side (CRJs)

RAH broke down the charges between fixed fee and branded on what I read. The cost does involve integration charges, so it is hard to know exactly what the cost was associated with the return of the aircraft.

Fixed Fee took a charge of 2.0M
Branded Took a charge of 11.1M

The number RAH gave for GAAP loss on the branded ops was 70.5M. I would have to look at previous reportings a little more closely, but RAH may have claimed the expense of integration and the withdrawl of aircraft on a previous earnings. In loose terms, since those deals never reached a depreciation of what they expected, they must now claim the difference as income. It works a little better for this quarter (overall less net loss), but the company cannot double claim the expense to lessen the tax burden.

That makes sense

Overall, no need to panic. 3rd and 4th qtrs will be the telling ones.

man you guys are just chomping at the bit to see us fail. amazing

Its not amazing and its nothing personal. If you guys start doing really well while flying 99 seats for 35$ per hour that hurts everyone else's ability to negotiate decent rates on domestic flying. If/when you guys start getting paid something near or north of industry average for your equipment we'll all be much more supportive.

I dont work for them man. I think they will fail. :)

Fail like ExpressJet branded?

Please tell us your predictions oh great omnipitent 25 year old regional FO.

While you're at it, what are the Powerball numbers for next week?

Please get off your high horse....o great omnipitent old man...

Ah Slapphappy's here, now the party can really get going.

hahahaha. your consitant hatred and bitterness makes you lose all credibility. Congrats on offically making my ignore list. Fail before Mesa? That comment alone shows you'll say anything to stir the pot.

Anyway lets get back to the original thread topic before it was hjacked by our friend slappy. Its nothing personal and we would never wish anything bad directly at another pilot group, but if Republic's business model succeeds all of our carrers greatly suffer. Until you guys get a payscale in the vicinity of Jetblue, we HAVE to hope your company fails (not you guys as pilots, but your company). We have to hope for this for the sake of the future of our families, incomes, carrier asperations, ect. Sorry to burst your bubble guys, but with your current pay to fly 99 seat aircraft, theres a pretty good chance most pilots you pass in the airport are praying for your company to fall. Hopefully someday you can all rise up and get a contract that is 50% of what Jetblue has.

Here's the part where I remind the APC peanut gallery, AGAIN, that 1. RAH has been in contract negotiations for at least a couple years, 2. in the last 12 months their company has bought what, 4 airlines that will require a SLI, complicating the matters of representation and contract expectations, 3. its ridiculous to compare JBLU wages established 6 months ago with wages set in a contract ratified in OCTOBER 2003 (which for the CA seat are higher than AWAC had in their Oct2003 contract for the 100-seat B146, yes their FO pay blows), and finally and most importantly, 4. DON'T YOU PEOPLE THINK RAH PILOTS WANT E190 PAY IN THE VICINITY OF JETBLUE?

Its not my intent to pick on JetBlast7 directly, but posts like his make me ashamed to be peers with the younger "me" generation of regional airline pilots that is seemingly too ignorant, naive, stupid, or all of the above to understand the pace & reality of airline collective bargaining, and how 'we' as an industry got to where we are now...

/end rant
//my lawn, get off it, etc...

You are right. I don't take much stock in actual cash on hand. Airlines have so many different means to slide money around there's no telling where that cash came from. Look at how United boosted their funds.

While I won't pretend to see what the future holds I do think it's interesting how in a couple years of airlines loosing billions those expect RAH to simply fail so quickly. Hopefully the company will see an increase in current aircraft usage on the fixed fee side to support the branded.

I don't agree with that. JetBlast7 is correct. RAH represents a danger to the industry which must fail. The 2003 contract was signed with future 99 seat expansions in mind so the "we didn't know" is not valid. I think everyone, including RAH pilots know that they won't be getting anything close to what Jetblue has. I think you are the one that is naive if you think otherwise. I'm going to venture to say that the majority don't care either. And the conduct on these boards as well in real life only affirms the reputation of post merger RAH pilots.

hahah, this is awesome, and partly truthful :).

I do find it slightly annoying how you are is not banned, yet I still, after 3 years can't log into my SAABaroowski account.... :)

Blaaaaaaaaaaaasssssssshhhphhhhhhaaaammmmmmmmey

See, this is where you lose me. I think it is some Republic pilots who have been acting ignorant, naive, and stupid as you put it. It’s nice that you are in contract negotiations but as of right now your pay stands and the fact that you are even willing to fly a SINGLE FLIGHT in a 190 for those pay rates is appalling. 30 years ago the operation would not have started up until the pay issue was fixed. Unfortunately this is no longer the world or industry we live in.

Come on guys, now that they know you'll fly these things for $35 or less an hour, do you REALLY think you'll negotiate anything CLOSE to mainline wages? The whole purpose/way of thinking behind your business model is flying these routes at a lower operating cost. Midwest and Frontier both already showed that they can't do it for mainline wages and be profitable, yet you think you can move in with 190's and negotiate $100 an hour and turn a profit? Unless you raise ticket prices to a point that would put you out of business anyway, this business model won't work the way BB wants it to. The only hope this business has of being profitable (without raising ticket prices) is for you guys to make a fraction of what mainline pay was and BB knows it. This is why we have to hope for a colossal failure.

They won't have to. As of right now the operation will fail. The only question is how much will the shareholders allow for money to be burned before they say no more to the Reverend. We all know Southwest and company have made Republic their special project because they represent a real threat with their cheap operation.

Jet Blue operates as a LCC on the same equipment and they have good pay rates. Our CASM right now hovers around 8 cents. Flight crew costs only accounts for 1 cent of the total 8. Our operating cost per hour on a 190 is around $2500, aside from fuel. I believe the next highest 190 operator is Airways at around $3400/hour. They could give both seats a $50/hour pay bump and it still wouldn't hurt their bottom line. BTW, these rough numbers come from management.

I try not to drink too much kool-aid, but I think the shareholders will give BB a lot of lee way. If the branded operation fails, RAH will die completely. We have all our cards on the table for this one, and there's no going back to a completely fixed fee operation. So to the BOD & investors, it might be worth giving this experiment a few chances at the risk of losing everything in a bankruptcy/liquidation scenario. That's just the way I'm thinking, but what do I know- I only make $35/hour and I'm easily replaceable.

This isn't anything new. It's not a mystery that our companies can afford to pay double, but they don't because of union mandated pay which has screwed us. They won't give it to you on principle, but you can try.

I don't care if you fail or not. I just want my job back that your company took from me for your benefit.

So when is you RAH class date? I know they are making offers to furloughs.

He forgot to mention the 80% pay cut he would take that prevents him from coming back.

Here were the choices... remain as RAH was and see mainline partners over time slowly take it all back and at some point in the future.. no more RAH... for labor thats not necessarily so bad...as those jobs move to mainline... but the company and its value end up zero.

Now BB as CEO well frankly his first responsibility is to the owners of the company to grow their investment if possible and make money. Its my opinion that BB decided to take this bold move because he was unwilling to just watch it wither away and die...and if it dies in the end so be it, but he decided to try and morph into a real airline.....only time will tell, I wouldnt totally count them out.

Herc I agree with you on just about anything but not this part. No more RAH, who's extremely diverse with just about every codeshare and every frame size while at a very low CASM, would mean no more just about any regional.

I do agree though not so bad for employees. Of course "Mainline wages" on an ERJ probably wouldn't change much but regardless it would be a great benefit if we see scope tightened.

Will that be enough to buy USAirways for the third time?

Don't take it too personally. My company has been on the wish list for many years. In fact our time on the wish list has been at the expense of some from your company that liked to put "guppy killer" stickers on their flight bags, deny our pilots Jumpseats on airplanes with OUR paint job on them. So please forgive us if you suffer some level of demise as you have heaped a whole load of fecal material on our pilot group since 9/11.

With hope that our merger with CO yields their scope clause. Perhaps we can see more and more of the parasitic operations disappear.

Sorry junior, it is only business. You have your new airline to go play with and I hope soon enough you guys are all devoted to that "operation" and out of ours.

L

They have "heaped a whole load of fecal material" on other pilot groups as well such as Midwest. I also hope they take the "Branded Operation" and wallow in the stuff [edit: delete insult/flamebait]