RJET down by -50% today?
 

Republic stock RJET is down by as much as 50% today. That's a huge loss in just one day. What's happening over there?

Just read an article. They scrapped their profit predictions because of a failure to keep up with staffing demands was what I took away from it

All part of the RAH's play to get rid of the 1500 hour rule.

Don't underestimate the extent of the good reverend's craftiness.

Does Republic have an ATP course like XJT, AWC, etc do now?

I guess they rather have this than come up with a new contract. Makes sense. :rolleyes:

Also I think their 2nd quarter earnings came out today

"operational disruption caused by regulatory changes and further intensified by our ongoing pilot labor dispute"

Watch for someone to try to make a move to buy RJET in the very near future. I don't think it will be successful, but I wouldn't be surprised.

There was no move in 2011 and the stock was cheaper then. When someone sees value they will be bought. As long as the schedule reductions happen orderly and other regionals can handle the flying they won't be bought by another regional. Maybe a major will want their aircraft at some point though.

I don't think so. There is no point in buying what can be taken for free. Pilots are the only real commodity and they work for free wherever the breeze happens to be blowing. There's no point in taking the options on the airplanes if you already have options on airplanes.

The majors don't want 70 seat airplanes, the regionals won't be able to staff them. So where does that really leave us?

Republic's fate is sealed, like all regionals. They simply will be one of the first to fold (or severely downsize to the lifers). It's a mathematical certainty under todays variables. There is no political will to make any serious changes to the current rule set.

This company is worth more dead than alive!

I agree with the statements, but look at the trading volume. The price also has stabilized and not continued to fall People are picking it up as fast as it is being sold, and for quarters on the dollar.

There are other values in a company besides pilots and airplanes. The systems that are in place are worth millions alone. There are also other purchasers and potential uses of the company other than just the majors buying them up.

From the article: "The...company also disclosed that it hired Seabury Group to evaluate options for its future".

In other words, they are for sale, or contemplating restructuring.

Seabury Group

They were the advisors that saved Monarch Airlines, if memory serves correctly.

Bankruptcy????

That would put an end to the "contract dispute" as they ram one down the pilot's throats.

Oh I've felt that at 9E. But our bankruptcy was corporate design and not due to an actual bankrupt position. RJET seems genuinely all but dying.

Bankruptcy was used in the past to get out of expensive pilot contracts. Republic going down that route would just worsen their predicament. Either way it's amusing to watch.

Go*bless,
B.B.

Republic management = Making Mesa management look amazing

If only those darn pilots would just bend over and take it like a man, we wouldn't be having this problem!!!

Rjet stock = toilet paper

lol I don't remember the last time I saw a big publicly traded company lose half of its money/value in hours. It's crazy. They seriously need a miracle after this.

It's hard to see what conceivable miracle that would be. I will also agree with others that the kernels are popping and I'm enjoying the spectacle.

No as a profitable airline they don't fit the bankruptcy mold. They are not going to zero out shareholder stocks to fight with pilots. That time may come but not today. It's more likely they are going to be for sale. Alternatively they may be exploring their options to take the company back private.

Bankruptcy, merger or private all will end up with Bedford being asked to move on. This isn't a legislation or negotiation issue. It's a management issue.

any skywesters changing their vote on this. Looks like you need pilots to fly airplanes.

I thought it was interesting that their profit margin is 1.5%. That's what the financial guys at Mesa have been telling us....that low profit margins are the new normal.

How about Lehman brothers and Bearstearns in 2008.

Haha touché! You are absolutely right. If RAH collapses financially Iike those two you mentioned, I can't imagine the ripple effects it will have on the regional airline industry. This is a very big regional airline we are talking about.

Seabury Group are the people who ushered Pinnacle Airlines into bankruptcy court. The Bob's are conducting office audits. Good Luck

They will probably count the beans and say..."you dumb-asses negotiated these contracts with razor thin margins" and "there is nothing that can be taken from the labor" and "you can't afford a deal with the pilots"

The bottom in the race to the bottom may have been finally found.

Their at least a year from bankruptcy right now, but I think if the NMB does release the pilots (Next Week?), then bankrupcy is very likely. They have the money, but BB is very spiteful, and will not let the pilots win. S5 will most likely be sold first, and that will create a huge mess with their seniority list. Not sure how IBT would fix it.

Is there a possibility of being released as soon as next week?

Or someone could pull a Delta-Bendover-Peanuckle and bail them out, just so the lowest bidder can stay alive to keep downward pressure on regional wages. However, Delta did have that clause in their contracts which forced everyone to nearly match the lowest bidder.

A Strike would most definitely be the final Rocky Balboa blow to the nuts

Can they legally strike?