Maa - Republic Sale

[goodgirl37]

So does anyone know what is going on with the sale of MAA to Republic? From my understandings the sale was supposed to be done by the first of August to avoid fines by Embraer. I havent heard anything lately so just wondering if anyone has any info. on the matter. Thanks!!

 

[700UW]

Embraer cannot fine US for not selling off MDA's assets, there are three 170s that US has to take delivery of from Embraer or face penalties.

 

[robbedagain]

Embraer cannot fine US for not selling off MDA's assets, there are three 170s that US has to take delivery of from Embraer or face penalties.

[post="286396"][/post]​

I thought the Republic deal would have taken that with the rest. did embraer work any kind of deal out whereas the EMB-170s would have gone over to Republice without fining usair?

 

[goodgirl37]

Embraer cannot fine US for not selling off MDA's assets, there are three 170s that US has to take delivery of from Embraer or face penalties.

[post="286396"][/post]​

Right, that is true but i thought they were going to get fined for the planes sitting in brazil on august 1st

 

[ringmaruf]

Right, that is true but i thought they were going to get fined for the planes sitting in brazil on august 1st

[post="286406"][/post]​

They've been getting fined for months now, hundreds of thousands of dollars per plane per month. They were going to have to pay a penalty in the range of $20 million on August 1; that deadline has been extended by US and Embraer (didn't say until when), but the amounts of the fines has now increased.

Good thing they're not wasting money.

 

[hharotz]

Looking at the Oct Schedules, a handfull of flights on MDA routes like PIT-PHL are beginning to say "Operated by US Airways Express- Republic Airways" effective Oct 13th. I've also noticed a huge infusion of AWAC RJs into the system as of that date as well.

 

[ringmaruf]

Looking at the Oct Schedules, a handfull of flights on MDA routes like PIT-PHL are beginning to say "Operated by US Airways Express- Republic Airways" effective Oct 13th. I've also noticed a huge infusion of AWAC RJs into the system as of that date as well.

[post="286418"][/post]​

I see flights with the 5000-series flight numbers starting September 16, on routes like IND-LGA/BOS/PHL, CMH-LGA, PHL-LGA, BUF-LGA/PHL.

Of course, that raises the question: If they're putting these birds on new routes like the ones above (which seem like perfectly good routes for them, btw), which existing EMB-170 routes will be downgraded?



Hmmm...but then in October, most of the above routes go back to regular RJs, and the Republic EMB-170s appear on mostly existing 170 routes like PHL-CMH/IND/BTV/IAH/MCI/ORF/PIT/RDU, DCA-ORD/BTV/PHL/RDU.

Since the September routes are all existing CHQ routes, maybe they're just proving runs? Still, you wouldn't expect to run proving runs on routes that you're not going to eventually fly, not to mention teasing pax on those routes with a better plane just for a month. Well, if there's one thing this company does, it's consistency.

 

[USA320Pilot]

Do not be surprised if MDA is not sold to Repubic and another transaction happens.

Regards,

USA320Pilot

 

[Zarah]

Didn't I read that the entire deal is on hold until the end of Aug.?

 

[orville]

Word at Express in PIT is we are gaining a PIT-PHL flight departing at 530 AM next month

 

[ringmaruf]

Do not be surprised if MDA is not sold to Repubic and another transaction happens.

[post="286449"][/post]​

Now that sounds like the US I know. Wait until the flights are in the schedules, and *then* change your mind.

 

[Flying Titan]

Perhaps, this is a sign that Parker/AWA is wielding some influence, though that's something they would have to be very careful about legally. If there is enough money to pull the merger off and there is enough for US to make it to the altar, then Parker may recognize the value of keeping MAA as a subsidiary/division that's already up and running with low costs. Starting next year, it will probably be the best and easiest way to pull in some E190s to replace all of these outgoing 737s w/o going to war with labor.

In the long run, it's probably more profitable for the new UAIR to keep this in-house, as well. The only reason to sell these aircraft and the slots that have been discussed is for a quick infusion of cash. If UAIR can limp along without it, then they will be better off to find a way out of this deal - even if they have to eat some fines from Embraer while getting their ducks in a row for the merger.

Some may see this as a typical "bad move" by CCY; personally, this seems to me like someone is actually thinking beyond the current crisis and trying to put the brakes on a deal that ONLY makes sense if they're desperate for cash in the short term.

 

[a320av8r]

"Some may see this as a typical "bad move" by CCY;"

Is CCY still running the show? (really?)

 

[pitguy74]

Do not be surprised if MDA is not sold to Repubic and another transaction happens.

[post="286449"][/post]​

Maybe something better for the folks at MDA?

 

[BoeingBoy]

Some may see this as a typical "bad move" by CCY; personally, this seems to me like someone is actually thinking beyond the current crisis and trying to put the brakes on a deal that ONLY makes sense if they're desperate for cash in the short term.

[post="286469"][/post]​

They would have to be pretty desperate - the greater of 1) the first $125 million or 2) 60% of the proceeds from asset sales goes to pay down the ATSB-backed loan under the latest terms. Since the MDA deal with Republic plus the 737 sale to Jet Partners would raise about $152 million, the $125 million prepayment would apply - leaving only about $27 million in added liquidity.

Not that paying down the ATSB-backed loan is a bad thing - the carrying cost went up 2% under the latest terms....

Jim