Republic Airways Holdings (RJET) is not bidding on any Delta (DALQ) replacement regional jet service but has offered Delta concessions on its existing contract and is aggressively pursing Delta's growth programs.

It also said the bulk of Chautauqua's new work for Continental (CAL) will be at Houston and Cleveland and little or nothing at Newark, where traffic congestion is forcing Continental to favor larger equipment there. (RAN, June 19, p. 1). Republic also said it would be "less hub focused and more mid-America heartland service" largely because it already has resources in place.

It reported operating revenues of $306.1 million for the quarter ended September 30, a 33.0% increase, compared to $230.2 million for the same period last year. The company reported net income of $21.9 million for the quarter, a 57% improvement over the $14 million reported in the prior year's third quarter.

In recounting third quarter highlights, Republic said total operating revenues for the third quarter of 2006 increased primarily as a result of a 46.5% increase in available seat miles (ASMs) to 2.5 billion, up from 1.7 billion ASMs, and a 23.9% increase in block hours. These increases reflect the addition of 40 ERJ 170s, which were placed into service since September 30, 2005, offset by the removal of seven ERJ 145s during the same time period.

Total operating expenses for the third quarter of 2006, including interest expense but excluding fuel charges, of $182.8 million, increased 32.6% from $137.8 million for the same quarter of 2005. Operating cost per ASM (CASM), including interest expense but excluding fuel, decreased 9.5% to 7.37 cents compared to the prior year's 8.14 cents.

During the quarter it took delivery of four new 170s as well as purchased five of its ERJ145s, under long-term leases, in a move to reduce costs.

On July 21st, the company announced that it had reached an agreement to operate 44, 50-seat regional jets for Continental Airlines. Twenty of the aircraft will be ERJ145s transitioned from US Airways Express operations with another 12 used CRJ-200s under a lease agreeement. The 12 are from FlyI. It also has a letter of intent to lease 12 additional used CRJ-200s. All 44 of the aircraft are expected to be placed into service for Continental between January and July 2007 and will be operated for terms that vary from two to five years.

During the quarter, Republic also announced that it had reached agreements with US Airways and Embraer to take delivery of thirty, 86-seat ERJ 175s for service with US Airways between February 2007 and the summer of 2008. The new, 12-year agreement with US Airways also included the removal of the twenty, 50-seat ERJ 145 aircraft which will be repositioned to operate under the new Continental agreement.

Source: Republic Airways Holdings