Republic Airways hits turbulence due to pilot shortages
Republic Airways Holdings, which operates regional flights for the big three US carriers, has seen more than half its stock value wiped out in a single day.
Shares in Republic plummeted 56% after it said it had cut services by 4% in the second quarter and is in talks to make more cuts in 2016 to services it operates for airline partners American Airlines, United and Delta Air Lines.
The company cited a projected pilot shortage, compounded by new FAA rules requiring more rest periods for pilots and a long running pay dispute.
Regional carriers like Republic operate about half of all US domestic flights connecting small and mid-sized airports with the big carriers’ hubs.
The big airlines use several other regional carriers which will likely be asked to pick up the slack, minimizing any major disruption to their schedules.
"The company has initiated discussions with our 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," said American Airlines spokeswoman Martha Thomas.
As of the end of 2014, Republic operated more than 250 aircraft on American, Delta and United regional routes.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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