RAH buys Midwest!!!

Browntothebone

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http://finance.yahoo.com/news/Republic-Airways-to-Acquire-bw-2066208706.html?x=0&.v=1


Republic Airways to Acquire Midwest Airlines




  • Press Release
  • Source: Republic Airways Holdings
  • On Tuesday June 23, 2009, 3:30 pm EDT





INDIANAPOLIS--(BUSINESS WIRE)--Republic Airways Holdings (NASDAQ: RJET - News) today announced that it is acquiring Milwaukee-based Midwest Airlines from TPG Capital, a Fort Worth, Texas-based private equity firm. The transaction is subject to customary regulatory approvals and is expected to close in four to six weeks.
Republic will acquire 100% of the equity of Midwest and TPG’s $31 million secured note from Midwest. Consideration will be $6 million in cash and a $25 million, five-year note, which may be converted to RJET stock at $10 per share. In addition, TPG will have the right to nominate a member to the Republic Board of Directors.
“This acquisition will enhance the strategic positioning of Republic Airways,” said Bryan Bedford, chairman, president and CEO of Republic Airways. “Midwest has built a strong brand, a loyal base of customers and dedicated team of employees. We look forward to welcoming them to the Republic family and continuing the Midwest tradition of excellent customer care.”
Bedford added: “As Midwest celebrates its 25th anniversary, I want to make sure I recognize what the employees of Midwest – past and present – have built and sustained through both good and difficult times. This is a great brand built on superior customer service that will continue under new ownership.”
Under the agreement, Midwest will become a wholly owned subsidiary of Republic Airways, with the Midwest brand continuing. Midwest’s Boeing 717s will be replaced with Embraer 190 aircraft, enhancing Midwest’s ability to offer nonstop service to key destinations important to its frequent flyers.
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 101 cities in 37 states, Canada and Mexico through airline services agreements with seven U.S. airlines. All of the airlines’ flights are operated under their airline partner brand, such as AmericanConnection, Continental Express, Delta Connection, United Express, Midwest Connect, Mokulele Airlines and US Airways Express. The airlines currently employ approximately 4,500 aviation professionals and operate 212 regional jets.
In addition to historical information, this release contains forward-looking statements. Republic Airways may, from time-to-time, make written or oral forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements encompass Republic Airways’ beliefs, expectations, hopes or intentions regarding future events. Words such as "expects," "intends," "believes," "anticipates," "should," "likely" and similar expressions identify forward-looking statements. All forward-looking statements included in this release are made as of the date hereof and are based on information available to Republic Airways as of such date. Republic Airways assumes no obligation to update any forward-looking statement. Actual results may vary, and may vary materially, from those anticipated, estimated, projected or expected for a number of reasons, including, among others, the risk factors disclosed in the Company’s most recent filing with the Securities and Exchange Commission.

Contact:


Republic Airways Holdings
Carlo Bertolini, 317-484-6069
 
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TWA Dude

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Uncle Tim saved himself. shocking

Best of luck to the Midwest employees. I hope this works out for y'all.
 

CitationLover

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If Bedford "retires" Tim Hoeksema that will be one positive out of this.
 

BILL LUMBERG

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Anybody worried....other than the Republic pilots high fiving each other??? Good luck to the Midwest and Frontier Pilots....

Count me as scared...
 

flyboyzz1

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they obviously are trying to start a new airline... I mean right? Crazy stuff.
 

CitationLover

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Anybody worried....other than the Republic pilots high fiving each other??? Good luck to the Midwest and Frontier Pilots....

Count me as scared...
Me too, but 75% of us are already furloughed. Our contract explicitly states he just bought the pilots, but then again he can pay off an arbitrator.

D. Successorship
1. This Agreement shall be binding on any successor, including but not
limited to any merged company or companies, purchaser, assign,
assignee, transferee, receiver, administrator, executor, and/or trustee of
the Company, if any.
2. Neither the Company nor an affiliate of the Company (“affiliate” shall
mean the same as under SEC regulation 17 C.F.R. §230.144(a)(1)) will
conclude any agreement for a Successorship Transaction unless the
Successor agrees in writing to assume and be bound by the Agreement, to
recognize the Association as the representative of the Company’s pilots
so long as such recognition is not inconsistent with the Railway Labor
Act or any applicable decision of the National Mediation Board, and to
employ the pilots on the Midwest Airlines, Inc., Pilot System Seniority
List in accordance with the provisions of the Agreement.
3. The term “Successorship Transaction” shall mean a transfer (in a single
transaction or in multi-step transactions) to the successor of the ownership
and/or control of all or substantially all of the equity securities and/or
assets of the Company.
a. In the event of a Successorship Transaction which results in an
operational merger in which the Successor is an air carrier or any
person or entity that controls or is under the control of an air
carrier, the Successor shall provide the Company ‘s pilots with the
seniority integration rights provided in Sections 3 and 13 of the
Labor Protective Provisions specified by the Civil Aeronautics
Board in the Allegheny-Mohawk merger (“Allegheny-Mohawk
LPPs”), except that the integration of the seniority lists of the
respective pilot groups shall be governed by the Association ‘s
Merger Policy if both pre-transaction pilot groups are represented
by the Association. Any such integration will not result in a
system flush.
b. The aircraft (including all orders and options to purchase aircraft)
and operations of each pre-transaction airline shall remain
separate and shall not be transferred between the pre-transaction
airlines until such time as the pilot seniority lists are integrated in
accordance with paragraph D.3.a.
4. Pursuant to a confidentiality agreement reasonably satisfactory to
the Company and to the Association, the Company shall provide
the Association with notice of a Successorship Transaction as soon
as reasonably possible, but no later than thirty-five (35) days prior to the closing date of a Successorship Transaction.
I am sure 3b will be used and simply wipe away the 717's back to Mexico and replace them with 190's flown by Republic. If the IBT accepts this, how is this not scabbing over the 400 "Midwest" branded pilots? You cannot have a code-share with yourself.
 

Indy319FA

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Wow....I heard rumblings about this a couple of weeks ago. But this in combination with the Frontier purchase is a big surprise. I guess we see what direction Bedford has decided to sail.

We are in a brave new world. It is going to be interesting to see how this all plays out with the different certificates and seniority lists. Good luck to us all.
 

wms

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What kind of financial position is Republic in and how much cash do they have?
 

instructordude

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Heard from a source Bedford will also be buying all of Deltas 747's and maybe looking at the 787.
 

BILL LUMBERG

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Heard from a source Bedford will also be buying all of Deltas 747's and maybe looking at the 787.
Ok....

Somebody want to tell me why he's not on my ignore list yet??
 

Fubijaakr

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Somebody want to tell me why he's not on my ignore list yet??
I don't know, but that last comment got him on mine. I feel better already.
 

CitationLover

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From what Bedford says on the TMJ call, he wants all pilots on one list and I am sure our payrates, work rules, and QOL will absolutely suck w/ PBS.

So now Midwest still has that nice little deal with Delta's scope that got transferred.
 

Indy319FA

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Heard from a source Bedford will also be buying all of Deltas 747's and maybe looking at the 787.
As absurd as this sounds, after today nothing that happens with this company in the future would surprise me.
 
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