Republic Airline Inc.

  • Overview

Many US airlines pledge allegiance to Republic Airways. The airline holding company's subsidiaries Chautauqua Airlines, Republic Airlines, and Shuttle America offer passenger flight service to major airports and smaller markets, as well as regional service under code-sharing agreements with AmericanContinentalDeltaUnited, and US Airways. (Code-sharing allows airlines to sell tickets on one another's flights and extend their network.) Its carriers fly to some 145 cities around the country. The company maintains a fleet of some 285 Embraer regional jets and Airbus narrow-body jets.

Geographic Reach

Republic carriers serve more than 145 cities in 46 US states, the Bahamas, Canada, Costa Rica, the Dominican Republic, Jamaica, Mexico, and Turks and Caicos.

Operations

Republic operates its business in two reportable segments: Republic and Frontier. Its Republic segment includes all regional flying performed under fixed-fee and pro-rate agreements, subleasing activities, regional charter operations, and the cost of any unallocated regional aircraft. The Frontier segment includes passenger service revenues and expenses for operating its Airbus fleet, as well as charter and cargo operations at Frontier. Both segments contribute about half of the company's total revenue.

Financial Performance

After reporting net losses for the last two years, Republic Airways posted $51 million in positive net income for 2012. Its revenues dipped 2% from $2.9 billion in 2011 to $2.8 billion in 2012.

Republic segment revenues were down due to a decrease in pro-rate flying for the Frontier segment and a reduction in pass-through fuel revenue. Frontier segment revenues were up slightly due to a higher load factor in addition to an increase in charter and other revenue.

The company was profitable for 2012 due to the absence of impairment charges related to aircraft, trademarks, and equipment and to an income tax benefit of around $35 million it received during the year.

Strategy

In late 2013 Republic sold its under-performing Frontier Airlines subsidiary to an investment fund affiliated with Indigo Partners. It made the move in order to focus on its core regional jet operations and enhance its relationships with its major airline partners.

The feeder market is better able to weather higher fuel costs because its clients -- the major airlines -- cover them. To cut down on costs, in 2011 Republic undertook a $120 million restructuring program. Republic won pay and benefit-concessions from pilots and flight attendants and made significant cuts to operations. The company is also overseeing a restructuring at Chautauqua Airlines that it hopes will generate some $60 million in operating improvements. Additionally, Frontier continues to replace smaller A318 and A319 aircraft with larger A320 aircraft as opportunities arise, which will help reduce cost per available seat mile.

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Republic Airline Inc.


8909 Purdue Rd Ste 300
Indianapolis, IN 46268-3152
Phone: 1 (317) 484-6000
www.rjet.com

STATS


  • Employer Type: Unknown
  • Pres-ceo-chb: Bryan Bedford
  • Chairman: Lee Hayes
  • Chairman: Red Hines

Major Office Locations

  • Indianapolis, IN