Republic Airways has filed for Chapter 11 bankruptcy protection in a New York court. The regional air carrier has stated it will attempt to sustain normal operations while it works to stabilize its financial situation. The filing last Thursday comes around six months after Republic Airways Holdings warned that it was having severe financial issues. The airline at that time pledged to try to restructure outside of a court filing, but that is now no longer an option. The airline has been battling a severe shortage of regional airline pilots. The pilot shortage resulted in a major loss of revenue over the last few quarters, as aircraft had to be grounded due to the lack of flight crew staff. Republic Airways operates about 1,000 flights a day for its partners, including American Airlines, Delta Air Lines, and United Airlines.
Republic Airways reached pilot deal
Republic Airways, based in Indianapolis, Indiana, reached a new tentative agreement with its more than 2,100 pilots last October. The new agreement, which came following hostile negotiations and mediations between the airline and unions representatives over the last 7 years, is a 3 year deal with the company’s remaining pilots. That new contract includes improved pay and benefits, but may have come too late. Many of the airlines pilots had already left the company to fly for other air carriers. The airline states that it is currently about 300 pilots short of its staffing requirements. The deal also covers pilots flying for Republic Airways’ sister companies, including Chautauqua Airlines and Shuttle America.
