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U.S. Bankruptcy Court Judge Sean Lane has approved the reorganization plan of Republic Airways.
The order, put forward by Lane on April 20, sets the stage for Republic to emerge from bankruptcy as a private company by the end of the month.
“With the work of restructuring complete, we’re ready to come out of Chapter 11 laser-focused on reclaiming our leadership position in the regional airline industry,” Republic CEO Bryan Bedford said in a statement.
Republic, the second-largest regional carrier in the U.S., filed for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court of the Southern District of New York in February 2016.
The Indianapolis-based carrier flies approximately 900 daily flights under the liveries of American Eagle, Delta Connection and United Express, down from the more than 1,300 daily flights at the time of the filing. The airline filed the Chapter 11 petition while still profitable, in part to gain negotiating leverage with its mainline partners as it dealt with a nationwide pilot shortage that has especially plagued regional airlines.
During the bankruptcy, Republic has renegotiated its deals with Delta, United and American, allowing it to restructure debt, shed unprofitable 50-seat aircraft, fly fewer flights and get higher reimbursement rates.
Republic emerges from bankruptcy having merged its two airline certificates into one. Its new name will be Republic Airline Inc.
The carrier currently trades on Nasdaq, but will be privately held once the bankruptcy case is formally closed.
Sоurсе: travelweekly.com
