RJET Q1 Loss 22.4 Million

[Secret Squirrel]

22.4 million loss for the quarter. Branded side loses 55.2 million.

http://finance.yahoo.com/news/Republic-Airways-Holdings-bw-855575473.html?x=0&.v=1

 

[RiddleEagle18]

No wonder they have been moving so many of their 170's back to the delta side. How long can this last?

 

[chqflyer]

It's reeeeaaaaallllllyyyy time to update the resume!

 

[StaySeated]

No wonder they have been moving so many of their 170's back to the delta side. How long can this last?

One of the many reasons the "brand" is losing money is the fleet.

17 170's
13 145's
18 190's
55 Airbus

The 30 170's and 145's are all orphans without a home. RJET is operating them at a loss on the branded side because it is cheaper to fly them at a loss than it is to park them in the desert.

The legacies are parking more narrowbodies so all 17 of the 170's are going back onto CPA's.

All 13 of the 145's are either going to be parked (six returned to EMB), subleased, or re-established as Frontier-Express. This will remove the RJ losses from the Branded side and place them were they originated, on the FFD side.

By the end of 2011, the branded fleet will be strictly Airbus and 190's.

This will mitigate the losses but Frontier will not be profitable will $3.50 a gallon fuel unless we continue to experience a significant RASM increase. Unfortunately, with MKE and DEN as the only two branded hubs, we are not going to see a large enough RASM increase unless we move to another "neighborhood".

 

[maxblast72]

Bedford talked on the Q1 Earning Conference call today about a $100 million "Business Improvement Program" being focused on the cost side of the equation. Will the Teamsters or FAPA even talk with Bedford about concessions? Will all 3,000 pilots being moved to one union soon or will they remain separate for a while?

 

[Anonymous2]

What's this about a place holder deposit for the A320neo?

 

[StaySeated]

Bedford talked on the Q1 Earning Conference call today about a $100 million "Business Improvement Program" being focused on the cost side of the equation. Will the Teamsters or FAPA even talk with Bedford about concessions? Will all 3,000 pilots being moved to one union soon or will they remain separate for a while?

The $100 million is a target that can and will be hit without concessions. RAH IBT is in Section 6 and FAPA is at the boiling point. The mere mention of concessions will be counter productive at this stage of the game.

The union question will be answered by the end of June. We are about to have a representation election.

The Airbus order is a no brainer.

What Bedford lacks in airline management skill he more than makes up for with his ability to leverage one side against another.

C Series is dead, which is why they are partnering with COMAC. No one will order the Cseries and no one will order the C919 so they are trying to build one plane together in a desperation move to stay viable.

RAH will announce a Neo order, they just need to clean up a handful of things first.

 

[maxblast72]

The $100 million is a target that can and will be hit without concessions. RAH IBT is in Section 6 and FAPA is at the boiling point. The mere mention of concessions will be counter productive at this stage of the game.

According to yesterday's press release, 28% of RJET's operating costs were fuel and 21% were labor. The other big categories were landing fees and airport rents, aircraft and engine rent, maintenance, and insurance. Bedford says he need $25 million in cost cuts a quarter (and the numbers probably back him up). I can't imagine Bedford didn't already have the non-labor cost as low as he could get them. That only leaves one area where Bedford can try to get some savings.

I wish you guys luck. I used to fly at Shuttle America (back when they had Saabs). I know guys at both Republic and Frontier. You guys need to be unified and come up with a solution. At $3.50/gallon, time is not on Bedford's side. One of 3 things needs to happen relatively quickly before Bedford burns too much cash: 1) Oil price and crack spread drops significantly. 2) Raise ticket prices significantly (not likely as there already has been 6 ticket price hikes this year and good luck getting Southwest to go along in your markets) or 3) Bedford finds $25 million quarter in savings.

 

[JetPilot_Mike]

22.4 million loss for the quarter. Branded side loses 55.2 million.

http://finance.yahoo.com/news/Republic-Airways-Holdings-bw-855575473.html?x=0&.v=1

:laugh:

 

[Quiet Flight]

What exactly is "branded" flying in this case? RJ's flying in F9 paint crewed by Republic pilots and stews?