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91-498: Republic Airways Inc. is an American regional airline headquartered in Indianapolis , Indiana. Republic operates and maintains aircraft used on flights that are scheduled, marketed and sold by a partner mainline airline. The company is contracted by American Airlines (as American Eagle ), Delta Air Lines (as Delta Connection ), and United Airlines (as United Express ). In 1999, Republic Airways Holdings incorporated

182-403: A valuation of the reorganized business. Bankruptcy valuation is often highly contentious because it is both subjective and important to case outcomes. The methods of valuation used in bankruptcy have changed over time, generally tracking methods used in investment banking, Delaware corporate law, and corporate and academic finance, but with a significant time lag. Chapter 11 retains many of

273-456: A 1983 article about PBA, Provincetown-Boston Airlines , both Air New England and Air Florida are described as regional airlines. At the time, Air New England was a recently-failed turboprop operator in the northeast USA, while Air Florida was a jet carrier flying from Florida to the northeast, to Latin America and Europe. The two airlines had little in common. As flag carriers grew to fill

364-870: A capacity purchase agreement with American Airlines to operate 47 Embraer 175 aircraft under the American Eagle brand beginning in mid-2013. The regional jets would be deployed out of American's Chicago hub. In addition, Republic would have options to purchase an additional 47 Embraer aircraft beginning in 2015. Republic took first delivery of the Embraer 175 jets in July 2013 and service began August 1, 2013, from Chicago to New Orleans, Pittsburgh and Albuquerque. Republic began using Miami as an American Eagle hub in October 2014 and New York-JFK in May 2015. In late 2015, it

455-407: A capacity purchase agreement with American Airlines to operate Embraer 175 airplanes under the American Eagle brand beginning in mid-2013. Republic began service as an American Eagle affiliate on August 1, 2013, from Chicago to New Orleans, Pittsburgh, and Albuquerque. On February 25, 2016, the airline filed for Chapter 11 bankruptcy protection. The airline was hit hard because of pilot shortages, but

546-424: A form of a virtual airline , with the regional airline paid to staff, operate and maintain aircraft used on flights that are scheduled, marketed and sold by a partner mainline airline. This practice allows the mainline carrier to use outsourced labor at smaller stations, to reduce costs. In 2011, 61% of all advertised flights for American, Delta, United and US Airways were operated by their regional brands. This figure

637-531: A larger carrier, similar to their American counterparts. Some of these airlines and brands include: The trend of branding regional airlines to match the mainline airlines, has led to just three major sub-brands in the United States: American Eagle , Delta Connection and United Express . They are the post-deregulation survivors of the multiple bankruptcies and mergers of the major, legacy, mainline airlines. These regional brands are

728-521: A mainline or flagship airline's aircraft, while in actuality they are far from it. Sub-branding is pretty consistent throughout the airline industry of the United States, with all the regional airlines, mainline airlines, and the regional airline holding companies, as well as the mainline airlines holding companies participating. On Feb 12th, 2010, a year after the crash of Colgan flight 3407 , Frontline premiered its WGA Award-winning exposé on

819-473: A motion to convert to chapter 7 or appoint a trustee if either of these actions is in the best interest of all creditors. Sometimes a company will liquidate under chapter 11 (perhaps in a 363 sale), in which the pre-existing management may be able to help get a higher price for divisions or other assets than a chapter 7 liquidation would be likely to achieve. Section 362(d) of the Bankruptcy Code allows

910-524: A new contract ratified in October 2015 helped restructure the airline. At the time of filing, Republic Holdings claimed $ 2.97 billion in liabilities and $ 3.56 billion in assets. On November 16, 2016, Republic Airways Holdings filed their Plan of Reorganization with intentions to emerge from Chapter 11 during the first quarter of 2017. It was announced that parent company Republic Airways Holdings would merge subsidiaries Shuttle America and Republic Airways into one company, with Republic Airways being chosen as

1001-664: A new subsidiary, "Republic Airline, Inc." but the subsidiary had no activity prior to 2004 and no ability to operate aircraft prior to 2005. In 2004, the holding company activated Republic Airways in reaction to a pilots' suit against American Airlines . American had awarded the flying of 44-seat regional jets to Chautauqua Airlines , then the main operating subsidiary of Republic Airways Holdings. However, Chautauqua later started to operate 70-seat regional jets on behalf of United Airlines, and this caused American to be in violation of its pilot union scope clause , which prevented an airline from operating on behalf of American if that airline

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1092-527: A new vision for regional mobility, based on services built out of small general aviation aircraft and VLJs (very light jets) with advanced automation. This vision failed to materialize due to its primary focus on rural mobility and a lack of clear and viable business case. With the introduction of air taxi services and very light jets , city pair links to smaller communities lacking regional connections could become more common. This opportunities could become commercially viable with advanced air mobility and

1183-415: A number of mechanisms to restructure its business. A debtor in possession can acquire financing and loans on favorable terms by giving new lenders first priority on the business's earnings. The court may also permit the debtor in possession to reject and cancel contracts. Debtors are also protected from other litigation against the business through the imposition of an automatic stay . While the automatic stay

1274-410: A plan during the period of exclusivity. This period allows the debtor 120 days from the date of filing for chapter 11 to propose a plan of reorganization before any other party in interest may propose a plan. If the debtor proposes a plan within the 120-day exclusivity period, a 180-day exclusivity period from the date of filing for chapter 11 is granted in order to allow the debtor to gain confirmation of

1365-479: A price war against competitors — all with the bankruptcy court's approval. Studies on the impact of forestalling the creditors' rights to enforce their security reach different conclusions. Chapter 11 cases dropped by 60% from 1991 to 2003. One 2007 study found this was because businesses were turning to bankruptcy-like proceedings under state law, rather than the federal bankruptcy proceedings, including those under chapter 11. Insolvency proceedings under state law,

1456-442: A reorganization; a conversion into chapter 7 liquidation, or it is dismissed. In order for a chapter 11 debtor to reorganize, they must file (and the court must confirm) a plan of reorganization. Simply put, the plan is a compromise between the major stakeholders in the case, including, but not limited to the debtor and its creditors. Most chapter 11 cases aim to confirm a plan, but that may not always be possible. Section 1121(b) of

1547-408: A strong entrepreneurial sector of independents. They are based on business models ranging from the traditional full service airline to low cost carriers . Innovations include one where the passenger is required to join a membership club before being allowed to fly. Some examples of European regional airlines include: India has many regional carriers operating currently. Some of these operate under

1638-430: A subsidiary, MidAtlantic Airways . As part of US Airways' bankruptcy restructuring, the 25 Embraer 170s delivered to MidAtlantic were bought by Republic to help US Airways come out of bankruptcy; Republic operates them along with additional newly delivered aircraft. In 2007, Frontier Airlines signed an 11-year service agreement with Republic Airways. Under the agreement, Republic would operate 17 Embraer 170 aircraft for

1729-673: Is common in the U.S. to incorrectly associate aircraft size with the Department of Transportation's designation of major, national, and regional airline. The only corollary is the Regional Airline Association, an industry trade group, defines "regional airlines" generally as "...operat(ing) short and medium haul scheduled airline service connecting smaller communities with larger cities and connecting hubs. The airlines' fleet primarily consists of 19 to 68 seat turboprops and 30 to 100 seat regional jets." To be clear there

1820-500: Is fully owned by American Airlines Group and does business as American Eagle . Many of these large regional airlines have joined the lobbying group Regional Airline Association . This association lobbies purely for the financial interest of the corporate bodies it constitutes, not the employees of those airlines. In Canada there are a number of regional airlines. Some of them focus on Canadian Arctic and First Nations communities, while others operate regional flights on behalf of

1911-417: Is in place, creditors are stayed from any collection attempts or activities against the debtor in possession, and most litigation against the debtor is stayed, or put on hold, until it can be resolved in bankruptcy court, or resumed in its original venue. An example of proceedings that are not necessarily stayed automatically are family law proceedings against a spouse or parent. Further, creditors may file with

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2002-484: Is most prominently used by corporate entities. In contrast, Chapter 7 governs the process of a liquidation bankruptcy, though liquidation may also occur under Chapter 11; while Chapter 13 provides a reorganization process for the majority of private individuals. When a business is unable to service its debt or pay its creditors , the business or its creditors can file with a federal bankruptcy court for protection under either Chapter 7 or Chapter 11. In Chapter 7,

2093-428: Is no distinction in the Department of Transportation definition of major, national and regional airlines by aircraft size. The definition is based on revenue. The clash of definitions has led to confusion in the media and the public. Beginning around 1985, a number of trends have become apparent. Regional aircraft are getting larger, faster, and are flying longer ranges. Additionally, the vast majority of regionals within

2184-408: Is severable. The trustee or debtor-in-possession normally assumes a contract or lease if it is needed to operate the reorganized business or if it can be assigned or sold at a profit. The trustee or debtor-in-possession normally rejects a contract or lease to transform damage claims arising from the nonperformance of those obligations into a prepetition claim. In some situations, rejection can also limit

2275-444: Is treated as a contested matter under Bankruptcy Rule 9014. A party seeking relief from the automatic stay must also pay the filing fee required by 28 U.S.C.A. § 1930(b). In the new millennium, airlines have fallen under intense scrutiny for what many see as abusing Chapter 11 bankruptcy as a tool for escaping labor contracts, usually 30–35% of an airline's operating cost. Every major US airline has filed for Chapter 11 since 2002. In

2366-687: The Civil Aeronautics Board from 1943 to 1950 include: A history and study of regional airlines was published by the Smithsonian Institution Press in 1994 under the title Commuter Airlines of the United States , by R.E.G. Davies and I. E. Quastler . Since the Airline Deregulation Act of 1978, the US federal government has continued support of the regional airline sector to ensure many of

2457-410: The aircraft livery for the company they are operating flights for. These airlines can be subsidiaries of the major airline or fly under a code sharing agreement or operating through capacity purchase agreements, with the mainline parent company financing the aircraft for the regional airline, and then placing the aircraft with the regional for very little cost. An example would be Envoy Air , which

2548-474: The automatic stay of § 362. The automatic stay requires all creditors to cease collection attempts, and makes many post-petition debt collection efforts void or voidable. Under some circumstances, some creditors, or the United States Trustee , can request the court convert the case into a liquidation under chapter 7, or appoint a trustee to manage the debtor's business. The court will grant

2639-425: The 19 passenger Embraer/FMA CBA 123 Vector and the 34 seat Dornier 328 were undertaken, but met little financial success, partly due to economic downturn in the airline industry resulting from the outbreak of hostilities when Iraq invaded Kuwait . Many of the regional airlines operating turboprop equipment such as Delta 's regional sister Comair airlines in the United States set the course for bypassing entirely

2730-444: The 1929 launch of Transcontinental Air Transport (T-A-T) in the United States. T-A-T's transcontinental "Lindbergh Line" became America's first contiguous coast-to-coast air service, and it ushered in a new era of major airlines expanding to operate networks with large footprints. The development of long-range aircraft operated by flag carriers like British Overseas Airways Corporation and Trans-Canada Airlines further normalized

2821-405: The Bankruptcy Code provides for an exclusivity period in which only the debtor may file a plan of reorganization. This period lasts 120 days after the date of the order for relief, and if the debtor does file a plan within the first 120 days, the exclusivity period is extended to 180 days after the order for relief for the debtor to seek acceptance of the plan by holders of claims and interests. If

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2912-490: The Bankruptcy Code), so, only a debtor can file a plan of reorganization . The SBRA requires the U.S. Trustee appoint a "subchapter V trustee" to every Subchapter V case to supervise and control estate funds, and facilitate the development of a consensual plan. It also eliminates automatic appointment of an official committee of unsecured creditors and abolishes quarterly fees usually paid to the U.S. Trustee throughout

3003-719: The Frontier Airlines operation. The first aircraft was placed into service in March 2007, and the last aircraft was expected to be placed into service by December 2008. On April 23, 2008, Republic Airways Holdings (parent of Republic Airline) terminated its service agreement with Frontier Airlines, which entered Chapter 11 bankruptcy in early April 2008. Subsequently, Republic Air Holdings purchased Frontier Airlines in bankruptcy. Frontier-branded Republic Embraer 190 aircraft provided regional capacity support. In September 2013, Republic Airways Holdings sold Frontier Airlines. As part of

3094-606: The United States with more than ten aircraft within their fleet, have lost their individual identities and now serve only as feeders, to Alaska Airlines , American Airlines , Delta Air Lines , or United Airlines major hubs. Regional aircraft in the US have been getting slightly more comfortable with the addition of better ergonomically designed aircraft cabins , and the addition of varying travel classes aboard these aircraft. From small, less than 50-seat "single-class cabin" turboprop , to turbofan regional jet equipment, present day regional airlines provide aircraft such as

3185-429: The United States, are: Mainline carrier-owned Independent contractors The evolution and chronological history of the commuter side of the regional airline industry can be defined by a number of dates prior to the end of the era of airline regulation by the Civil Aeronautics Board of the United States. Among these significant dates are: List of Commuter Airlines in 1977 Prior to Airline Deregulation: Some of

3276-433: The advantages of a traditional Chapter 11 case without the unnecessary procedural burdens and costs. It seeks to increase the debtor's ability to negotiate a successful reorganization and retain control of the business and increase oversight and ensure a quick reorganization. A Subchapter V case contrasts from a traditional Chapter 11 in several key aspects: it is earmarked only for the "small business debtor" (as defined by

3367-404: The airline hub. Initially these tie ups tended to use small 15 -19 seat aircraft, which did not have a reputation of passenger comfort, or safe reliable operations, by small often under capitalized tiny airline operators. To create a common tie and what appeared to be seamless to the air traveler, major carriers marketed in advertising and soon had much smaller airlines paint their small and what

3458-598: The airline is the only reasonable link to a larger town. Examples of this are PenAir , which links the remote Aleutian Islands to Anchorage, Alaska , and Mokulele Airlines , which operates in the Hawaiian islands. As an affiliated airline , contracting with a major airline , operating under their brand name (for example, Endeavor Air operates flights under the Delta Connection brand name for Delta Air Lines ), and filling two roles: delivering passengers to

3549-577: The automatic stay provisions of the Bankruptcy Code. In August 2019, the Small Business Reorganization Act of 2019 ("SBRA") added Subchapter V to Chapter 11 of the Bankruptcy Code. Subchapter V, which took effect in February 2020, is reserved exclusively for the small business debtor with the purpose of expediting bankruptcy procedure and economically resolving small business bankruptcy cases. Subchapter V retains many of

3640-441: The best interests of the creditors and the estate, the case may be dismissed resulting in a return to the status quo before bankruptcy. If the case is dismissed, creditors will look to non-bankruptcy law in order to satisfy their claims. In order to proceed to the confirmation hearing, a disclosure statement must be approved by the bankruptcy court. Once the disclosure statement is approved, the plan proponent will solicit votes from

3731-433: The business ceases operations, a trustee sells all of its assets, and then distributes the proceeds to its creditors. Any residual amount is returned to the owners of the company. In Chapter 11, in most instances the debtor remains in control of its business operations as a debtor in possession , and is subject to the oversight and jurisdiction of the court. A Chapter 11 bankruptcy will result in one of three outcomes for

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3822-437: The capability of "far and wide" air travel among the traveling public. "Regional airline" is a flexible term whose meaning has changed substantially over time. What it means today is different than how it has been used in the past. For instance, in the United States, around 1960, the term “regional carrier” denoted the smaller eight of the 12 largest carriers, then known as trunk carriers (or trunk airlines or simply trunks). At

3913-512: The case. Most notably, Subchapter V allows the small business owner to retain their equity in the business so long as the reorganization plan does not discriminate unfairly and is fair and equitable with respect to each class of claims or interests. The reorganization and court process may take an inordinate amount of time, limiting the chances of a successful outcome and sufficient debtor-in-possession financing may be unavailable during an economic recession. A preplanned, pre-agreed approach between

4004-471: The classes of creditors. Solicitation is the process by which creditors vote on the proposed confirmation plan. This process can be complicated if creditors fail or refuse to vote. In which case, the plan proponent might tailor his or her efforts in obtaining votes, or the plan itself. The plan may be modified before confirmation, so long as the modified plan meets all the requirements of Chapter 11. A chapter 11 case typically results in one of three outcomes:

4095-442: The cost of litigating the chapter 11 case) are paid first. Secured creditors —creditors who have a security interest , or collateral , in the debtor's property—will be paid before unsecured creditors. Unsecured creditors' claims are prioritized by § 507. For instance the claims of suppliers of products or employees of a company may be paid before other unsecured creditors are paid. Each priority level must be paid in full before

4186-408: The court must determine whether the plan is "feasible, " in other words, the court must safeguard that confirming the plan will not yield to liquidation down the road. The plan must ensure that the debtor will be able to pay most administrative and priority claims (priority claims over unsecured claims ) on the effective date. Like other forms of bankruptcy, petitions filed under chapter 11 invoke

4277-442: The court seeking relief from the automatic stay. If the business is insolvent , its debts exceed its assets and the business is unable to pay debts as they come due, the bankruptcy restructuring may result in the company's owners being left with nothing; instead, the owners' rights and interests are ended and the company's creditors are left with ownership of the newly reorganized company. All creditors are entitled to be heard by

4368-409: The court to terminate, annul, or modify the continuation of the automatic stay as may be necessary or appropriate to balance the competing interests of the debtor, its estate, creditors, and other parties in interest and grants the bankruptcy court considerable flexibility to tailor relief to the exigencies of the circumstances. Relief from the automatic stay is generally sought by motion and, if opposed,

4459-436: The court. The court is ultimately responsible for determining whether the proposed plan of reorganization complies with bankruptcy laws. One controversy that has broken out in bankruptcy courts concerns the proper amount of disclosure that the court and other parties are entitled to receive from the members of the creditor's committees that play a large role in many proceedings. Chapter 11 usually results in reorganization of

4550-406: The creditors' objection, the plan must not discriminate against that class of creditors, and the plan must be found fair and equitable to that class. Upon confirmation, the plan becomes binding and identifies the treatment of debts and operations of the business for the duration of the plan. If a plan cannot be confirmed, the court may either convert the case to a liquidation under chapter 7, or, if in

4641-427: The damages that a contract counterparty can claim against the debtor. Chapter 11 follows the same priority scheme as other bankruptcy chapters. The priority structure is defined primarily by § 507 of the Bankruptcy Code ( 11 U.S.C.   § 507 ). As a general rule, administrative expenses (the actual, necessary expenses of preserving the bankruptcy estate, including expenses such as employee wages, and

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4732-602: The debtor and its creditors (sometimes called a pre-packaged bankruptcy ) may facilitate the desired result. A company undergoing Chapter 11 reorganization is effectively operating under the "protection" of the court until it emerges. An example is the airline industry in the United States; in 2006 over half the industry's seating capacity was on airlines that were in Chapter 11. These airlines were able to stop making debt payments, break their previously agreed upon labor union contracts, freeing up cash to expand routes or weather

4823-413: The debtor's business or personal assets and debts, but can also be used as a mechanism for liquidation. Debtors may "emerge" from a chapter 11 bankruptcy within a few months or within several years, depending on the size and complexity of the bankruptcy. The Bankruptcy Code accomplishes this objective through the use of a bankruptcy plan. The debtor in possession typically has the first opportunity to propose

4914-410: The debtor: reorganization, conversion to Chapter 7 bankruptcy, or dismissal. In order for a Chapter 11 debtor to reorganize, the debtor must file (and the court must confirm) a plan of reorganization. In effect, the plan is a compromise between the major stakeholders in the case, including the debtor and its creditors. Most Chapter 11 cases aim to confirm a plan, but that may not always be possible. If

5005-534: The demand of long-range passenger traffic, new and small airlines found niches flying between short and under-served routes to-and-from major airports and more rural destinations. Through the 1960s and 1970s, war surplus designs (notably, the Douglas DC-3 ) were replaced by higher-performance turboprop or jet -powered designs like the Fokker F27 Friendship and BAC One-Eleven . This extended

5096-423: The features present in all, or most, bankruptcy proceedings in the United States. It provides additional tools for debtors as well. Most importantly, 11 U.S.C.   § 1108 empowers the trustee to operate the debtor's business. In Chapter 11, unless a separate trustee is appointed for cause, the debtor, as debtor in possession, acts as trustee of the business. Chapter 11 affords the debtor in possession

5187-500: The first aircraft was delivered to Republic Airways in March 2007. Total orders were for 36 aircraft, which were operated in an 80-seat configuration under the US Airways Express brand name. In July 2010, Republic ordered a further 24 Embraer 190 aircraft. In May 2012, Republic Airways agreed to fly the 28 Bombardier Q400s for United Express that bankrupt Pinnacle Airlines planned to return to its lessors. The Q400 fleet

5278-553: The government's UDAN (Regional Connectivity Scheme) . Note:- Alliance Air is still a state-owned airline, whereas Air India is private. Australia has an association for regional airline, the Regional Aviation of Australia. More than 2 million passengers and 23 million kg of cargo are involved each year. Post airline deregulation, airlines sought added market share and to do this they sought partnerships with regional and small airlines to feed traffic into

5369-416: The higher capacity CRJ700 , CRJ900 , CRJ1000 series of aircraft and the somewhat larger fuselage Embraer E-Jets . Some of these newer aircraft are capable of flying longer distances with comfort levels that rival and surpass the regional airline equipment of the past. In the early 1990s, much more advanced turboprop-powered, fuel efficient, and passenger friendly DC-3 type replacement projects such as

5460-532: The industry entitled "Flying Cheap". In the program, reporter Miles O'Brien questioned how the impact of low salaries are having on pilot psyches and how safe this could be for the flying public. When asked to respond to the question, Roger Cohen, president of the Regional Airline Association, told Frontline that, "...there are many other people who earn less money than that and work more days in these communities that can afford it and do it and do it responsibly." The Small Aircraft Transportation System outlined

5551-461: The introduction of electric aircraft. In some parts of the world, regional airlines face competition from high-speed rail and also coach (bus) services with airlines sometimes replacing feeder services through air rail alliances and contracts with bus companies (e.g., Landline between Philadelphia International Airport and Atlantic City International Airport ). In North America , regional airlines are operated primarily to bring passengers to

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5642-434: The judge approves the reorganization plan and the creditors all "agree", then the plan can be confirmed. §1129 of the Bankruptcy Code requires the bankruptcy court reach certain conclusions prior to "confirming" or "approving" the plan and making it binding on all parties in the case. Most importantly, the bankruptcy court must find the plan (a) complies with applicable law, and (b) has been proposed in good faith. Furthermore,

5733-407: The judge approves the reorganization plan and the creditors all agree, then the plan can be confirmed. Section 1129 of the Bankruptcy Code requires the bankruptcy court reach certain conclusions prior to confirming or approving the plan and making it binding on all parties in the case, most notably that the plan complies with applicable law and was proposed in good faith. The court must also find that

5824-635: The lesser known smaller brands used by the regional airlines and their parent companies were: European regional airlines serve the intra-continental sector in Europe . They connect cities to major airports and to other cities, avoiding the need for passengers to make transfers. For example, BA CityFlyer a regional subsidiary of British Airways uses the basic Chatham Dockyard Union Flag livery of its parent company and flies between domestic and European cities. Some of Europe's regional airlines are subsidiaries of national air carriers, though there remains

5915-679: The livery of Air France . NLM 's KLM style branding does however pre-date the Air France efforts though by a number of years. The success of the "rebranding" or "pseudo branding" of a much smaller airline into the name recognition of a much larger one soon became clear as passenger numbers soared at Air Alpes, and it was soon decided to paint other aircraft such as the Fokker F-27 into full Air France colours as well. Many airline passengers find sub-branding very confusing, while many other airline passengers are content to think they are on

6006-680: The mainline airline's sub-brand livery. For example, United Express regional airline partner CommutAir branded its entire fleet as United Express. On the other hand, regional airline Gulfstream International Airlines did not brand their aircraft. When Colgan Air was still operating, they branded a handful of aircraft as Colgan Air, but most were branded as Continental Connection , US Airways Express or United Express , with whom it had contractual agreements. 21st century regional airlines are commonly organized in one of two ways. Operating as an independent airline under their own brand, mostly providing service to small and isolated towns, for whom

6097-410: The mainline airlines, in terms of revenue, many would be designated major airline carrier status based on the only actual definition of "major airline," in the United States, the definition from the U.S. Department of Transportation. This definition is based solely on annual revenue and not on any other criterion such as average aircraft seating capacity, pilot pay, or number of aircraft in the fleet. It

6188-439: The major airline's hubs from surrounding towns, and increasing frequency of service on mainline routes during times when demand does not warrant use of large aircraft, known as commuter flights . One of the first independently owned and managed airlines in the world that rebranded its aircraft to match a larger airline's brand was Air Alpes of France. During 1974, Air Alpes painted its newly delivered short range regional jets in

6279-588: The major airlines. Chapter 11, Title 11, United States Code Chapter 11 of the United States Bankruptcy Code ( Title 11 of the United States Code ) permits reorganization under the bankruptcy laws of the United States. Such reorganization, known as Chapter 11 bankruptcy , is available to every business , whether organized as a corporation , partnership or sole proprietorship , and to individuals, although it

6370-501: The major hubs, where they will connect for longer-distance flights on the national airlines also known as flagship carriers . The smallest regional carriers have become known as feeder airlines. The separate corporate structure allows the company to operate under different pay schedules, typically paying much less than their mainline owners. Many large North American airlines, have established operational relationships with one or more regional airline companies. Their aircraft often use

6461-539: The new aircraft would start in the second half of 2020 In October 2019, Republic received the first of 30 Embraer 175s to be transferred from Compass Airlines upon the cancellation of their contract with Delta. Regional airline Decades before the advent of jet airliners and high-speed, long-range air service, commercial aviation was structured similarly to rail transport networks. In this era, technological limitations on air navigation and propeller-driven aircraft performance imposed strict constraints on

6552-404: The next lower priority level may receive payment. Section 1110 ( 11 U.S.C.   § 1110 ) generally provides a secured party with an interest in an aircraft the ability to take possession of the equipment within 60 days after a bankruptcy filing unless the airline cures all defaults. More specifically, the right of the lender to take possession of the secured equipment is not hampered by

6643-403: The potential length of each flight; some routes covered less than 100 miles (160 km). As such, airlines structured their services along point-to-point routes with many stops between the originating and terminating air terminals. This system of air transportation effectively forced most airlines to be "regional" in nature, but the lack of distinction among carriers soon began to change with

6734-421: The proposed plan. With some exceptions, the plan may be proposed by any party in interest. Interested creditors then vote for a plan. If the judge approves the reorganization plan and the creditors all agree, then the plan can be confirmed. If at least one class of creditors objects and votes against the plan, it may nonetheless be confirmed if the requirements of cramdown are met. In order to be confirmed over

6825-494: The range of the regionals dramatically, causing a wave of consolidations between the now overlapping airlines. In the United States, regional airlines were an important building block of today's passenger air system. The U.S. Government encouraged the forming of regional airlines to provide services from smaller communities to larger towns, where air passengers could connect to a larger network. The original regional airlines (then known as " Local service carriers ") sanctioned by

6916-904: The regional turboprops as they became the first to transition to an all-jet regional jet fleet. To a lesser extent in Europe and the United Kingdom this transition, to notably the Embraer or Canadair designs, was well advanced by the late 1990s. This evolution towards jet equipment, brought the independent regional airlines into direct competition with the major airlines, forcing additional consolidation. To improve on their market penetration, larger airline holding companies rely on operators of smaller aircraft to provide service or added frequency service to some airports. Such airlines, often operating in code-share arrangements with mainline airlines, often completely repaint [1] their aircraft fleet in

7007-545: The reorganization plan is feasible in that, unless the plan provides otherwise, the plan is not likely to be followed by further reorganization or liquidation. In a Chapter 11 bankruptcy, the debtor corporation is typically recapitalized so that it emerges from bankruptcy with more equity and less debt, a process through which some of the debtor corporation's debts may be discharged. Determinations as to which debts are discharged, and how equity and other entitlements are distributed to various groups of investors, are often based on

7098-728: The sale, Republic Airways terminated the Frontier-branded Embraer 190 from flying. On February 1, 2008, Republic Airways opened a base at John Glenn Columbus International Airport in Columbus, Ohio . On September 3, 2008, Republic signed a new 10-year codeshare agreement with Midwest Airlines . The aircraft would be based at Kansas City International Airport beginning October 1, 2008. Twelve aircraft would be placed in service with Midwest. On June 23, 2009, Republic announced it would acquire Midwest Airlines for $ 31 million. In January 2013, Republic Airways Holdings reached

7189-471: The smaller and more isolated rural communities remain connected to air services. This is encouraged with the Essential Air Service program that subsidizes airline service to smaller U.S. communities and suburban centers, aiming to maintain year-round service. Although regional airlines in the United States are often viewed as small, not particularly lucrative "no name" subsidiaries of

7280-585: The space of 2 years (2002–2004) US Airways filed for bankruptcy twice leaving the AFL–CIO , pilot unions and other airline employees claiming the rules of Chapter 11 have helped turn the United States into a corporatocracy . The trustee or debtor-in-possession is given the right, under § 365 of the Bankruptcy Code, subject to court approval, to assume or reject executory contracts and unexpired leases. The trustee or debtor-in-possession must assume or reject an executory contract in its entirety, unless some portion of it

7371-491: The study stated, are currently faster, less expensive, and more private, with some states not even requiring court filings. However, a 2005 study claimed the drop may have been due to an increase in the incorrect classification of many bankruptcies as "consumer cases" rather than "business cases". Cases involving more than US$ 50 million in assets are almost always handled in federal bankruptcy court, and not in bankruptcy-like state proceeding. The largest bankruptcy in history

7462-431: The surviving company. On January 31, 2017, Shuttle America merged with Republic Airways. In December 2018, the operating division was renamed Republic Airways to match its parent company. As of January 2024, Republic operates for American Eagle , Delta Connection , and United Express . As of June 2024, Republic Airways operates the following aircraft: The Embraer 175 made its United States domestic debut when

7553-478: The time the four biggest airlines in the United States were known as the Big Four, comprising American , United , TWA and Eastern Air Lines . The other eight trunk carriers were Braniff , Capital , Continental , Delta , National , Northeast , Northwest and Western . Since, at the time, none of these eight had a network approaching the scale of the Big Four, they were known as the regional carriers. This

7644-500: Was announced Republic Airways achieved approval from the FAA for Extended Overwater Operations (EOW), which allows Republic to operate up to 162 nautical miles from shore. As of January 31, 2017, only Republic Embraer 175 aircraft operating for American Airlines are equipped to operate as an EOW aircraft. On December 20, 2018, Republic Airways announced that it had finalized a firm order for 100 Embraer 175 aircraft, stating that deliveries for

7735-409: Was despite the existence, at the time, of 13 smaller United States scheduled carriers known as local service carriers whose service was arguably far more regional than the “regional” trunks. So when reading historical sources, it’s important to understand that the term "regional airline" has migrated greatly over time. Sometimes the term has been stretched beyond the point of utility. For instance, in

7826-400: Was of the US investment bank Lehman Brothers Holdings Inc., which listed $ 639 billion in assets as of its Chapter 11 filing in 2008. The 16 largest corporate bankruptcies as of December 13, 2011 Enron, Lehman Brothers, MF Global and Refco have all ceased operations while others were acquired by other buyers or emerged as a new company with a similar name. ‡ The Enron assets were taken from

7917-401: Was often described as puddle-jumper aircraft, in the image and branding colors of the much larger mainline partner. This was to give the appearance of reliability. Over time these regional aircraft grew in size as airline hubs expanded and competition dwindled among the major carriers. Below is a list of many of the regional brands that evolved when regional airlines were advertised to look like

8008-592: Was only 40% in 2000. The formerly small regional airlines have grown substantially, through mergers or by the use of a holding company, as pioneered by AMR Corporation in 1982. AMR created the AMR Eagle Holding Corporation which unified its wholly owned American Eagle Airlines and Executive Airlines under one division, but still maintained the regional airlines' operating certificates and personnel separate from each other and American Airlines . The most significant regional airlines in

8099-433: Was operating jet aircraft of more than 50 seats, even if such aircraft were operating on behalf of a carrier other than American. To repair the situation, Republic Airways Holdings activated Republic Airline, and upon Part 121 certification in 2005 allowing Republic Airline to operate commercial service. Republic Airways Holdings then transferred the offending 70-seat regional jets from Chautauqua to Republic Airline. American

8190-575: Was retired in 2017. Republic Airways Holdings signed a three-year contract in October 2012 with Caesars Entertainment Corporation where its Republic Airways subsidiary would operate five Embraer 190 aircraft to provide more than 1,500 charter flights annually for Caesars. Service began in January 2013. This contract ended in August 2015 and all Embraer 190 aircraft were sold or returned to the lease holders. In January 2013, Republic Airways Holdings reached

8281-457: Was then no longer in violation of its pilot union scope clause. Republic Airways Holdings paid $ 6.6 million to the pilot union of American Airlines to settle the issue. US Airways' pilots had a scope clause prohibiting the airline from operating large regional jets such as the Embraer 170. The airline negotiated around this clause by offering flight deck jobs to laid-off US Airways pilots, in a program known as "Jets for Jobs". This agreement created

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