DAL owns 15% of Republic

[chperplt]

Is this new info, or just new to me?


WASHINGTON, June 4 (Reuters) - Delta Air Lines Inc. (NYSEAL -
News) holds a 15-percent stake in regional airline operator Republic
Airways Holdings Inc. (NasdaqNM:RJET - News), according to a U.S.
regulatory document on Friday.

The stake stems from agreements entered into in June 2002
eventually giving Delta warrants, also called rights, to buy stock of
Republic Airways, which completed an initial public offering late last
month.

In a separate regulatory filing on May 26, Delta reported that it holds
warrants to buy up to 4.5 million shares of common stock at prices
ranging from $12.35 to $13 per share.

Some of the warrants held by Atlanta-based Delta do not expire until
as late as March 2014, according to a May 26 filing with the U.S.
Securities and Exchange Commission.

Republic shares closed 3.5 percent higher, or 49 cents, at $14.67 on
the Nasdaq.

In its Friday document, Delta said it currently plans to hold all of the
warrants for "investment purposes."

But it added that depending on market conditions and other factors, it
may from time to time exercise its warrants, hold the shares received
upon exercise, buy more Republic securities, or dispose of all or a
portion of its investment in Republic.

 

[tyuwerty]

This was part of the SEC filings made by RJET for the IPO a few weeks back. I actually thought it was 17%.

 

[~~~^~~~]

Ohh, No.

Someone fill in the details here. Isn't Republic part of Chautauqua's E170 operating jets for jobs outfit? Isn't this all held under Republic Airlines, which is a wholly owned of Wexford? Why would Delta want a share of a US Air Jets for Jobs carrier?

Something about this does not pass the sniff test. Is Delta planning to follow the US model in an effort to operate a 100 seat aircraft at costs less than ASA's ATR pilots?

This is much more interesting news than another of General Lee's articles about RJ's being too small. After all, Delta's seniority list is obviously too big. If I were General Lee, I might be trying to figure out why Delta would make this investment.

 

[CHQ Pilot]

The IPO was for Repubulic Airways Holdings, Inc. The two seperate companies under the RAH name are Chautauqua Airlines and Republic Airlines. Since going public, RAH is not a subsidiary of Wexford, but controlling interest is still held by Wexford. Most of the cash raised was used to pay Wexford for loans. I believe the warrants for the stock were initially issued in 2002 as an incentive to signing a long term contract with Chautauqua. The SEC filings we amended to add more warrants as options on aircraft were exercised. I don't think there is anything in the ultimate plan other than an investement oppurtunity which was offered as part of the package deal. Everything can be found in the SEC filings for RAH.

 

[FurloughedAgain]

Nice flamebait, however it wont happen.

One of the few things that the Chautauqua pilots won in their recent contract was a single-seniority list. Republic is a seperate airline flown by pilots on the Chautauqua seniority list. (they are fenced once they make the jump).

If Delta wants EMB170s for its furloughees I guess they're just going to have to go out and buy some.

 

[General Lee]

Fins,

I didn't learn of this until I got back from a long 4 day yesterday, so I don't really know the details. I would suspect that Delta got some deal when they initially signed up Chataqua for DCI service a few years back. Maybe they were awarded the shares--and I suspect that they will sell them when they climb higher in price. I haven't heard anything about furloughs flying them-----but I wouldn't be against that. I would hope we could get our guys back in some sort of cockpits sooner than later, and then funnel them back to mainline airplanes when they become available. If I were an ASA or Comair pilot--I might wonder what was going on---maybe Dalpa has struck a deal for extra 70 seaters and Delta can get them for cheap thru Republic. I don't know.......

Bye Bye--General Lee

 

[Mike man]

I was under the impression that the stock for DL was for them helping CHQ in 2001 when America West pulled out of its contract, then DL added flying which used the airplanes which had been for America West. I also thought that DL had some type of scope clause that allowed only 56 or something 70 seat jets. I thought DL did not allow other carriers (CHQ and Skywest) to operate 70 seat jets, which is why Republic came about was to operate 70 seat jets for other carriers and still allow CHQ to fly for Delta.

Also this topic has been discussed before.