Republic Financing Inc?

ePilot22

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Press Release said:
Republic Airways to Provide up to $35 Million of Loans to US Airways
Thursday October 23, 9:00 am ET

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.
“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.

Republic is doing what it can to keep the airlines afloat! Is this just a waste of money or a good investment for future flying?


Link:http://biz.yahoo.com/bw/081023/20081023005659.html?.v=1






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flyboyzz1

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man if I was one of the guys put out on the street by Republic I'd have a hard time reading this. How come they couldn't have used just a fraction of this money and keep their pilots on payroll.
 

Stifler's Mom

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"Tranche" is actually a French word meaning "slice" or "portion". In the world of investing, it is used to describe a security that can be split up into smaller pieces and subsequently sold to investors.
I looked it up for all of you, because like me, you've probably never heard of this word before. :D
 

ePilot22

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Press Release said:
Form 8-K for REPUBLIC AIRWAYS HOLDINGS INC

7-Aug-2008

Entry into a Material Definitive Agreement, Results of Operations a


Item 1.01 Entry into a Material Definitive Agreement.
On August 4, 2008, Republic Airways Holdings Inc. (the "Company") announced that it is participating with two other creditors in providing a debtor-in-possession (DIP) financing commitment of $30 million to Frontier Airlines Holdings, Inc. and its affiliates, all of which have filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code. The Company's portion of this commitment is equal to $12.5 million. The DIP financing is subject to bankruptcy court approval and to various conditions.

Press Release" said:
5. Republic made a one year term loan to Midwest in the amount of $15.0 million, with an additional loan commitment of $10.0 million, based on the achievement of certain milestones.
FRONTIER.........$12.5 million
MIDWEST..........$15 million additional $10 million
US AIRWAYS......$10 million additional $25 million
-----------------------------------------------------------
TOTAL..............$37.5 million with a possible total of $72.5 million = CHUMP CHANGE.








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ePilot22

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DASH8AV8R said:
So how long will it be till Republic is flying 190's?
More like flying Airbuses.









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erikgigem

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man if I was one of the guys put out on the street by Republic I'd have a hard time reading this. How come they couldn't have used just a fraction of this money and keep their pilots on payroll.
For better or worse, some CEOs make decisions in the best interests of their shareholders and not their pilots. Like some other well-known regional companies keeping hundreds of pilots on with a significant loss of flying. The results is a weakened financial position and stock that is now worth pennies. Of course their positions were not helped by high oil, fierce competition in a free market economy, and an developing recession.
 

WAVIT Inbound

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For better or worse, some CEOs make decisions in the best interests of their shareholders and not their pilots. Like some other well-known regional companies keeping hundreds of pilots on with a significant loss of flying. The results is a weakened financial position and stock that is now worth pennies. Of course their positions were not helped by high oil, fierce competition in a free market economy, and an developing recession.
What airline would that be? Only 2 with penny stocks I can think of and both have pilots on furlough.
 

David Clark

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erikgigem said:
For better or worse, some CEOs make decisions in the best interests of their shareholders and not their pilots. Like some other well-known regional companies keeping hundreds of pilots on with a significant loss of flying. The results is a weakened financial position and stock that is now worth pennies. Of course their positions were not helped by high oil, fierce competition in a free market economy, and an developing recession.
Whatever makes you feel better.
 

SF340Guy

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Wouldn't loaning a cash strapped partner $$$ to get by for a little while, in hopes of securing future contracts be a good way to keep your employees employed. When the next contract comes about, and USAir is looking at which small jet operator to award it to, who will get the call... If you don't answer RAH your either lying to yourself, or don't want to admit it.

Either way, that is how you look out for your employees, future flying... growth... and new equipment, not quite ready to be parked in the desert...
 

Beergut

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Wouldn't loaning a cash strapped partner $$$ to get by for a little while, in hopes of securing future contracts be a good way to keep your employees employed. When the next contract comes about, and USAir is looking at which small jet operator to award it to, who will get the call... If you don't answer RAH your either lying to yourself, or don't want to admit it.

Either way, that is how you look out for your employees, future flying... growth... and new equipment, not quite ready to be parked in the desert...

It hasn't seemed to work for Skywest. They helped save Delta's a$$ when they bought ASA, yet lately they've been being overlooked in favor of Pinnacle. (Especially ASA)
 

Ratherbsurfing

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man if I was one of the guys put out on the street by Republic I'd have a hard time reading this. How come they couldn't have used just a fraction of this money and keep their pilots on payroll.
What does Republic loaning money to a codeshare have to do with retaining furloughees as a result of lost flying and parked aircraft? Republic Airways is a publicly traded company, not a communist social institution.
 
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Ratherbsurfing

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So how long will it be till Republic is flying 190's?
With a little luck and some critical thinking and a
tough stance by the pilots at all the majors, hopefully never. At least not as a codeshare anyway. Not all of us want to work for regional wages and benefits for the remainder of our careers.
 

flyboyzz1

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Wouldn't loaning a cash strapped partner $$$ to get by for a little while, in hopes of securing future contracts be a good way to keep your employees employed. When the next contract comes about, and USAir is looking at which small jet operator to award it to, who will get the call... If you don't answer RAH your either lying to yourself, or don't want to admit it.

Either way, that is how you look out for your employees, future flying... growth... and new equipment, not quite ready to be parked in the desert...
That just isn't how it works. The business world does not honor the "scratch mine Ill scratch yours" mentality. When and IF they need feed they will go with the cheapest and most performing. I dont know how many times I have seen this kind of thing happen and people always say they owe our company flying...doesn't always mean you are next in line. AWAC dumped a ton of money in as well...so how do you know they won't get flying instead. If you truly believe what you wrote than that's great hope it helps you sleep...but I think you are "lying" to yourself.
 

flyboyzz1

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What does Republic loaning money to a codeshare have to do with retaining furloughees as a result of lost flying and parked aircraft? Republic Airways is a publicly traded company, not a communist social institution.
It has much to do with it in my eyes. If they have such excess cash that they are bailing people out then I think they could have kept staffing greater than normal. How much does it cost to keep a few jr FOs on payroll? Not much. Your not saving much by kicking them to the streets and downgrading a few capts. For example, SKW, (and things could change tomorrow) has been around 200 pilots overstaffed for the past 3 or so months. We have 75 FO rsvs at ORD alone, way too many. There is something to be said about a company that makes every effort to keep their employes loyal and employed. Not drinking koolaid, because obviously they are staffing the airline to take advantage of any growth that may turn up but lets face it... they could can some pilots and be closer to proper staffing. All Im saying is, if I was a Republic pilot id have liked to seen the company barely dip into the bank and try to keep those who make the airline run an active part.
 

Captain Morgan

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It has much to do with it in my eyes. If they have such excess cash that they are bailing people out then I think they could have kept staffing greater than normal. How much does it cost to keep a few jr FOs on payroll? Not much. Your not saving much by kicking them to the streets and downgrading a few capts. For example, SKW, (and things could change tomorrow) has been around 200 pilots overstaffed for the past 3 or so months. We have 75 FO rsvs at ORD alone, way too many. There is something to be said about a company that makes every effort to keep their employes loyal and employed. Not drinking koolaid, because obviously they are staffing the airline to take advantage of any growth that may turn up but lets face it... they could can some pilots and be closer to proper staffing. All Im saying is, if I was a Republic pilot id have liked to seen the company barely dip into the bank and try to keep those who make the airline run an active part.
Do you know what is going on behind the scenes. I don't like to armchair quarterback because I have no idea what the man behind the curtain is thinking or doing. I know your daddy beat you when you were a kid, and your girlfriend walked out on you, but you have to trust someone at some point in your life. <---- sarcastic humor.
 

flyboyzz1

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Do you know what is going on behind the scenes. I don't like to armchair quarterback because I have no idea what the man behind the curtain is thinking or doing. I know your daddy beat you when you were a kid, and your girlfriend walked out on you, but you have to trust someone at some point in your life. <---- sarcastic humor.
I guess you're right...but actually my girlfriend beat me and my dad ran out on me :)
 

Captain Morgan

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I guess you're right...but actually my girlfriend beat me and my dad ran out on me :)
Haha, sorry to hear that man. I didn't mean to strike a nerve. If it makes you feel any better my wife beats me regularly, even it it's not evidenced by bruises. It's more of the psychological kind of beating. :smash:
 
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