Usairways Sells Erj-70's And Slots To Republic
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USA320Pilot
Veteran
- May 18, 2003
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Republic to buy US Airways aircraft, gates
ARLINGTON (Charlotte Business Journal) - Republic Airways Holdings Inc. says it will proceed with plans to purchase 28 Embraer 170's aircraft and other assets from US Airways Group Inc. for $100 million.
Indianapolis-based Republic Airways will buy 10 aircraft, assume the leases on an additional 18 and operate themin the US Airways network under a previously negotiated regional-jet service agreement.
Republic Airways will also purchase, and then lease back to US Airways, 113 commuter slots at Ronald Reagan Washington National Airport, and 24 commuter slots at New York LaGuardia Airport. Other assets to be acquired include a flight simulator, spare parts, and certain facilities to support aircraft operations.
The transaction is slated to close on or before July 31.
Virginia-based US Airways will have the right to repurchase the slots.
Republic Airways expects to take delivery of the first Embraer 170 late this summer.
Republic Airways operates Chautauqua Airlines, Republic Airlines and Shuttle America. The company offers scheduled passenger service on more than 800 flights daily to 82 cities in 32 states, Canada and the Bahamas through airline services agreements with four major U.S. airlines.
US Airways, which is operating under Chapter 11 bankruptcy protection, announced in March a multi-part agreement with Republic Airways and its affiliate Wexford Capital to sell certain assets and make the company an equity investor in the restructured airline. However, when US Airways announced plans last month tomerge with America West Holdings Corp. of Arizona, the pact with Republic shifted.
However, the asset sale is going forward.
The combination US Airways and America West will create the sixth-largest airline in the United States, forming a carrier that will rival Dallas-based Southwest in size, with a wide choice of routes.
US Airways operates 34 gates at Charlotte/Douglas International Airport, its largest and most profitable hub.
The new company will take the US Airways name and be headed by America West Chief Executive Doug Parker,who has been named CEO and chairman of the new company.
Once integrated, the new carrier plans on maintaining its hubs in Charlotte, Philadelphia and Phoenix, along with secondary hubs in Las Vegas and Pittsburgh.
Republic Airways to Purchase Embraer 170 Aircraft Slots and Other Assets from US Airways
ARLINGTON (Dow Jones Newswires) - Republic Airways Holdings Inc. (RJET) will buy about $100 million worth of assets from US Airways Group Inc. (UAIRQ) as part of an agreement reached in March to infuse liquidity into the bankrupt carrier to help it emerge from Chapter 11.
In separate releases Thursday, the two companies said they agreed to proceed with the asset-purchase agreement whereby regional-carrier Republic Airways will buy 28 jet aircraft and other assets from US Airways.
US Airways, however, doesn't intend to request Republic and its majority owner, Wexford Capital LLC, to purchase the new common stock to be issued in connection with US Airways' reorganization and its merger with America West Holdings Corp. (AWA).
The equity investment was also part of the March agreement. However, US Airways has since agreed to the America West merger in which other equity participants have committed to invest in the merged companies.
Republic Airways will purchase 10 aircraft and assume the leases of an additional 18 Embraer 170 aircraft, and will operate them in the US Airways network under a previously negotiated agreement approved by the Bankruptcy Court.
Until Republic receives its operating certificate from the Federal Aviation Administration -- expected Sept. 1 -- US Airways will lease the aircraft back from Republic and continue to operate them.
In addition to the Embraer aircraft, Republic Airways will also purchase, and then lease back to US Airways, 113 commuter slots at Ronald Reagan Washington National Airport, and 24 commuter slots at New York LaGuardia Airport. The purchase of assets is expected to close on or before July 31.
US Airways will have the right to repurchase the slots. US Airways and Republic said they remain in discussions about additional 70 and 90-seat regional jets that might be added to the US Airways Express fleet in future years.
Under the original March agreement, Republic Airways and Wexford Capital were to buy $125 million of US Airways stock after the company emerged from bankruptcy-court protection. These funds were on top of another $125 million in equity financing pledged in February by an affiliate of Air Wisconsin Airlines Corp.
At the time, US Airways was said to be looking for $250 million of new cash to help it step out of court protection, which was slated for this summer.
Regards,
USA320Pilot
ARLINGTON (Charlotte Business Journal) - Republic Airways Holdings Inc. says it will proceed with plans to purchase 28 Embraer 170's aircraft and other assets from US Airways Group Inc. for $100 million.
Indianapolis-based Republic Airways will buy 10 aircraft, assume the leases on an additional 18 and operate themin the US Airways network under a previously negotiated regional-jet service agreement.
Republic Airways will also purchase, and then lease back to US Airways, 113 commuter slots at Ronald Reagan Washington National Airport, and 24 commuter slots at New York LaGuardia Airport. Other assets to be acquired include a flight simulator, spare parts, and certain facilities to support aircraft operations.
The transaction is slated to close on or before July 31.
Virginia-based US Airways will have the right to repurchase the slots.
Republic Airways expects to take delivery of the first Embraer 170 late this summer.
Republic Airways operates Chautauqua Airlines, Republic Airlines and Shuttle America. The company offers scheduled passenger service on more than 800 flights daily to 82 cities in 32 states, Canada and the Bahamas through airline services agreements with four major U.S. airlines.
US Airways, which is operating under Chapter 11 bankruptcy protection, announced in March a multi-part agreement with Republic Airways and its affiliate Wexford Capital to sell certain assets and make the company an equity investor in the restructured airline. However, when US Airways announced plans last month tomerge with America West Holdings Corp. of Arizona, the pact with Republic shifted.
However, the asset sale is going forward.
The combination US Airways and America West will create the sixth-largest airline in the United States, forming a carrier that will rival Dallas-based Southwest in size, with a wide choice of routes.
US Airways operates 34 gates at Charlotte/Douglas International Airport, its largest and most profitable hub.
The new company will take the US Airways name and be headed by America West Chief Executive Doug Parker,who has been named CEO and chairman of the new company.
Once integrated, the new carrier plans on maintaining its hubs in Charlotte, Philadelphia and Phoenix, along with secondary hubs in Las Vegas and Pittsburgh.
Republic Airways to Purchase Embraer 170 Aircraft Slots and Other Assets from US Airways
ARLINGTON (Dow Jones Newswires) - Republic Airways Holdings Inc. (RJET) will buy about $100 million worth of assets from US Airways Group Inc. (UAIRQ) as part of an agreement reached in March to infuse liquidity into the bankrupt carrier to help it emerge from Chapter 11.
In separate releases Thursday, the two companies said they agreed to proceed with the asset-purchase agreement whereby regional-carrier Republic Airways will buy 28 jet aircraft and other assets from US Airways.
US Airways, however, doesn't intend to request Republic and its majority owner, Wexford Capital LLC, to purchase the new common stock to be issued in connection with US Airways' reorganization and its merger with America West Holdings Corp. (AWA).
The equity investment was also part of the March agreement. However, US Airways has since agreed to the America West merger in which other equity participants have committed to invest in the merged companies.
Republic Airways will purchase 10 aircraft and assume the leases of an additional 18 Embraer 170 aircraft, and will operate them in the US Airways network under a previously negotiated agreement approved by the Bankruptcy Court.
Until Republic receives its operating certificate from the Federal Aviation Administration -- expected Sept. 1 -- US Airways will lease the aircraft back from Republic and continue to operate them.
In addition to the Embraer aircraft, Republic Airways will also purchase, and then lease back to US Airways, 113 commuter slots at Ronald Reagan Washington National Airport, and 24 commuter slots at New York LaGuardia Airport. The purchase of assets is expected to close on or before July 31.
US Airways will have the right to repurchase the slots. US Airways and Republic said they remain in discussions about additional 70 and 90-seat regional jets that might be added to the US Airways Express fleet in future years.
Under the original March agreement, Republic Airways and Wexford Capital were to buy $125 million of US Airways stock after the company emerged from bankruptcy-court protection. These funds were on top of another $125 million in equity financing pledged in February by an affiliate of Air Wisconsin Airlines Corp.
At the time, US Airways was said to be looking for $250 million of new cash to help it step out of court protection, which was slated for this summer.
Regards,
USA320Pilot
I wonder how fast they will pi$$ away the 100 million? Let's see how much for the severance package? plus now they are going to lease back our own gates and aircraft. I would not be surprized if all the "gains" from this transaction are eaten up in a few months just with the cost now to be incurred by paying cost plus. Another brilliant move by the "talent" in CCY and as a bonus they probably have ruined up to 1000 more peoples lives.
and 320 Your plane is next.
and 320 Your plane is next.
The "deal" concluded before July 31st eh...?
Curious what happend to the expidited grievence regarding the question of if this is considered a "change of control" or mere "asset sale" (of 100% of all assets, but not control..?). Seems to me that sort of thing should be settled before the first USX Republic flies revenue.
Being as all the details of this deal seem to have been worked out, sans the future of the MDA employees, the pilots in particular... (LOA 91 provisions).
At a mininum, those three aircraft that CHQ/Republic are taking possesion of should be made avail. for bid by the MDA pilots now, so that day one of their operation as US Airways Express those aircraft will be in compliance with the US Aiways Pilot's contract and scope provisions.
Sure would be nice to see something, anything from ALPA about this.
I mean, they have not even made the merger with America West official yet, but the entire MEC was able to meet in PHX with their AWA counterparts. I wonder if even just Capt Pollack has bothered to meet with the CHQ Teamsters once to try and get this more time critical situation resolved...
Curious what happend to the expidited grievence regarding the question of if this is considered a "change of control" or mere "asset sale" (of 100% of all assets, but not control..?). Seems to me that sort of thing should be settled before the first USX Republic flies revenue.
Being as all the details of this deal seem to have been worked out, sans the future of the MDA employees, the pilots in particular... (LOA 91 provisions).
At a mininum, those three aircraft that CHQ/Republic are taking possesion of should be made avail. for bid by the MDA pilots now, so that day one of their operation as US Airways Express those aircraft will be in compliance with the US Aiways Pilot's contract and scope provisions.
Sure would be nice to see something, anything from ALPA about this.
I mean, they have not even made the merger with America West official yet, but the entire MEC was able to meet in PHX with their AWA counterparts. I wonder if even just Capt Pollack has bothered to meet with the CHQ Teamsters once to try and get this more time critical situation resolved...
- Banned
- #20
Rico,
I am sad to say this but the "mainline" MEC does not care about you and the rest of the MDA pilots, look at the lack of representation, your own MEC and your own contract.
They will sell you out just like they have always done to the junior pilots.
Sounds like Pollack needs a DFR suit slapped on him.
I am sad to say this but the "mainline" MEC does not care about you and the rest of the MDA pilots, look at the lack of representation, your own MEC and your own contract.
They will sell you out just like they have always done to the junior pilots.
Sounds like Pollack needs a DFR suit slapped on him.
Hey, I have not worn my ALPA pin for years, and mine is Silver even...
Doubt I will do so anytime soon unless I see some actual representation from our representitives anytime soon.
Kinda sems sad that all the growth/jobs nowadays is at non-ALPA carriers, but then again, it kinda makes sense.
Doubt I will do so anytime soon unless I see some actual representation from our representitives anytime soon.
Kinda sems sad that all the growth/jobs nowadays is at non-ALPA carriers, but then again, it kinda makes sense.
phllax said:
I'd imagine that the pilots in the "Embraer Division" ought to be able to get hired on at a certain JFK-hubbed carrier that has 100 E190's on order. I suspect they'd be able to upgrade to the Airbus long, long before they would have had the same opportunity at US Airways. As far as I can tell, the pay is better at JBLU, too.
I hope PITbull is correct about flight attendant positions opening up with all the attrition from mainline.
sharonstoneseat
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- Nov 27, 2002
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PITbull said:
Light Years
Veteran
- Aug 27, 2002
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Well, now the 170 Division really is mini-mainline... even the morale matches now!!! Looks like they just killed that "extra MidAtlantic touch" everyone raves about in the MAA employees. I guess they wanted to be more consistent with the jaded and disgrunted US Airways attitude.
USA320Pilot
Veteran
- May 18, 2003
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ALPA MEC communications committee chairman Jack Stephen reported on yesterday's code-a-phone, "The Grievance Committee has filed MEC 05-06-04, MDA/Wexford Transaction. It has come to the Association's attention that the Company is misinterpreting and misapplying Section 1 of the Working Agreement and Letter of Agreement 91 by taking the position that the Wexford transaction with respect to MDA is an Aircraft Sale Event rather than an MDA Affiliate Event and change in control of MDA. It is the position of the Association that the Company's transaction with Wexford is an MDA Affiliate Event and represents a change in control of MDA," he said.
See Story
Regards,
USA320Pilot
See Story
Regards,
USA320Pilot
USA320Pilot
Veteran
- May 18, 2003
- 8,175
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Today the Pittsburgh Post-Gazette reported, US Airways pilots are angry about a deal reached Thursday to sell 28 regional jets to Indianapolis commuter carrier Republic Airways. The jets are currently part of a US Airways division called MidAtlantic Airways, which is based near Pittsburgh International Airport. US Airways, in calling the transaction an "asset sale" as opposed to a "change in control," is "misinterpreting and misapplying" a contract signed with the pilots union last April, according to the union.
The contract protects the jobs of all MidAtlantic pilots only if such a deal is termed a "change in control." Lakefield said in a telephone message to employees yesterday that customers and employees should expect no "immediate changes" as a result of the Republic deal announced Thursday. But more should be known about jobs over the next couple of weeks.
See Story
Regards,
USA320Pilot
The contract protects the jobs of all MidAtlantic pilots only if such a deal is termed a "change in control." Lakefield said in a telephone message to employees yesterday that customers and employees should expect no "immediate changes" as a result of the Republic deal announced Thursday. But more should be known about jobs over the next couple of weeks.
See Story
Regards,
USA320Pilot
USA320Pilot
Veteran
- May 18, 2003
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RJ & Asset Sale
ARLINGTON (theHub.com) - Late Thursday, US Airways announced that it will go forward with the sale of the Embraer 170 aircraft and related assets to Republic Airways, part of an agreement reached with Republic in March 2005.
The transition of aircraft is anticipated to take around nine months to complete, so there will be no immediate changes for customers or employees.
US Airways and Republic management teams will be meeting within the next ten days to finalize transition plans. As soon as there is specific information to provide employees who may potentially be impacted, it will be shared in multiple ways, including theHub, the workplace, and through your elected representatives, where applicable. In the meantime, MidAtlantic employees should assume it is business as usual.
Employees with questions regarding this element of the transition process or other merger-related concerns can e-mail "[email protected]."
Regards,
USA320Pilot
ARLINGTON (theHub.com) - Late Thursday, US Airways announced that it will go forward with the sale of the Embraer 170 aircraft and related assets to Republic Airways, part of an agreement reached with Republic in March 2005.
The transition of aircraft is anticipated to take around nine months to complete, so there will be no immediate changes for customers or employees.
US Airways and Republic management teams will be meeting within the next ten days to finalize transition plans. As soon as there is specific information to provide employees who may potentially be impacted, it will be shared in multiple ways, including theHub, the workplace, and through your elected representatives, where applicable. In the meantime, MidAtlantic employees should assume it is business as usual.
Employees with questions regarding this element of the transition process or other merger-related concerns can e-mail "[email protected]."
Regards,
USA320Pilot
nycbusdriver
Veteran
USA320Pilot said:
Uh-oh. The sternly-worded letters are about to be sent.
