NEW YORK, August 6, 2015 /PRNewswire/ --
ACI Association has initiated research coverage on Republic Airways Holdings Inc. (NASDAQ: RJET). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.
Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/?c=RJET
Highlights from our RJET Report include:
- Second Quarter 2015 Anticipations - On July 24, 2015, Republic Airways Holdings Inc. released preliminary results of second quarter 2015. The Company expects to report net income of around $4.0 to $5.0 million or $0.08 to $0.10 per diluted share and pretax margins of approximately 2.5% to 3.0% on operating revenues of around $338 to $340 million, during the quarter. The Company informed that the Q2 2015 results were negatively impacted by approximately 4% lower block hours of production than anticipated in an operation due to the ongoing operational disruption caused by regulatory changes and further intensified by the Company's ongoing pilot labor dispute.
- Other Corporate Update, IBT Lawsuit - The International Brotherhood of Teamsters (IBT) Local 357, representing Republic's pilots, filed a suit on July 9, 2015, against the Company alleging that Republic Airways Holdings unilaterally increased compensation for pilots and new hires in violation of the Railway Labor Act. The Company stated that the suit is completely without merit, and it will take appropriate steps to respond. Further, Republic Airways added that the specific allegations made by IBT Local 357 are incomplete and factually incorrect.
- Impact of the Labor Dispute - Highlighting the matter at the preliminary release, the Company informed that the ongoing labor dispute with the IBT is further amplifying its pilot staffing challenges. The Company and IBT are negotiating for an amended collective bargaining agreement, under the supervision of the National Mediation Board. As per the release, Republic Airways has presented a comprehensive proposal to the IBT that would place its pilots ahead of their peers in the regional airline industry for both compensation and work rules. However, due to the lack of a new agreement for the Company's pilots, Republic Airways is facing increased levels of attrition and an inability to attract new pilots.
- Effect of Lawsuit on Operations Front - The Company stated that it cannot predict with any certainty a timeline for resolution of dispute due to the IBT's unrealistic bargaining position. As a result, the Company projects continued operational disruption related to the ongoing labor dispute and the growing national pilot labor shortage. The released informed that Republic Airways has initiated discussions with its mainline partners to take the necessary actions to both temporarily and permanently reduce scheduled flying commitments for the remainder of 2015 and the first half of 2016. In light of the anticipated fleet reductions, the Company is rescinding all previously issued financial and operational guidance.
To find out how this influences our rating on Republic Airways Holdings Inc. read the full report in its entirety here: http://www.aciassociation.com/?c=RJET
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