BBD knew in advance this deal was unlikely. Republic has been working to slim down operations by flying the more popular 70- to 88-seat Embraer E170 and E175 aircraft, which are bigger than the Embraer E145 it’s operated for larger carriers. The E170 and E175 are considered in the same fleet type, and flying one type saves money by simplifying employee training and reducing spare parts that must be kept on hand.
The airline was flying 41 of the 45-seat E145s at the end of last year’s third quarter and has parked many of the 80 E145s it still controls, Aviation Daily reported on Feb. 23. The airline would remain liable for interest incurred on the parked planes unless it negotiates new terms with the aircraft owners.
The goal is for Republic to become “a single fleet, a single operating certificate carrier and one airline with a very bright future,” Bedford said in a recent note to employees, according to Aviation Daily. But he “can’t promise how it will all work out,” the publication said.
Flight Shares
As of the 2015 third quarter, Republic operated 110 of the 550 aircraft flown by the 10 smaller carriers American Airlines uses. It accounted for 16 percent of the 3,400 daily regional flights by American, the airline said. At that time, Republic’s Shuttle America flew about 15 percent of all Delta Connection flights.
“Republic is a valued longtime partner,” American said in an e-mailed statement. “It’s very early in this process and we will work with Republic and our other regional partners to make sure we take care of our customers.”
Delta spokesman Michael Thomas said the company had no comment on the filing. United didn’t immediately respond to a request for comment.
Republic reported 19 percent drops in its block hours, seen as a proxy for revenue, in December and January. Listing $2.97 billion in liabilities and $3.56 billion in assets in Chapter 11 papers in Manhattan federal court, the company said it has enough money to operate while it tries to reorganize.
Bombardier Blow
The bankruptcy may be a blow to Canada’s Bombardier Inc., which has struggled to market the C Series jet it’s developing. The aircraft is more than two years late and about $2 billion over budget. Republic signed a firm order for 40 CS300 planes in 2010, though Bedford later cast doubt on the agreement after the carrier’s strategy changed.
Marianella de la Barrera, a spokeswoman for Bombardier, didn’t immediately respond Thursday to an e-mailed request for comment on the Republic order.