flyboyzz1

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'; “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.

EmbraerFlyer

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

ToiletDuck

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.

TristarJS30

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

flyboyzz1

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.

ToiletDuck

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

flyboyzz1

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...

ToiletDuck

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.

BoilerUP

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...

FlyingNasaForm

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.