Republic Airways plans to emerge from bankruptcy in the first quarter, after renegotiating contracts to provide regional flights for the biggest US carriers.
Republic has filed its reorganisation plan with the US bankruptcy court for the southern district of New York, the carrier said. It plans to operate under the name Republic Airline.
The regional carrier sought protection from creditors in February after struggling with a shortage of pilots. It secured a new contract with its workers in 2015 but initially was unable to negotiate deals with larger airlines to help to cover costs of higher pilot pay.
Republic cleared a critical hurdle toward exiting bankruptcy in September, when it reached a deal to continue providing regional flights for its largest customer, American Airlines. The Indianapolis-based regional carrier earlier reached agreements to continue operating flights for Delta Air Lines and United.
In bankruptcy negotiations, Republic also has been able to speed the removal of out-of-favour aircraft and restructure debt on more than 80 Embraer regional jets, according to the airline.
“We have achieved each of the restructuring goals set at the onset of this case, while restoring our airline to a level of operational excellence unmatched in our industry,” said the Republic chief executive Bryan Bedford.
* Bloomberg
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