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Republic Airways Holdings Inc., struggling with a pilot shortage while trying to reach a new contract, told aviators the carrier faces a “non-consensual restructuring” if its latest labor proposal fails.
The language was the regional airline’s strongest yet in urging pilots to accept its “last, best and final offer” on an agreement. The letter to pilots posted on a Republic website didn’t say precisely what a non-consensual restructuring would mean, and a spokesman didn’t immediately comment.
“We cannot remain stuck at the crossroads any longer,” according to the letter signed by eight Republic executives. “Our morale has suffered and our people are exhausted. Our code-share partners -– our sole source of revenue –- are justifiably frustrated with our performance. Our suppliers and vendors are no longer willing to wait for us to resolve our issues. Our stock price has been battered.”
Republic, a provider of commuter flights to larger airlines, has been mired in talks with pilots since 2007. Under the offer presented Thursday by the Indianapolis-based company, new first officers would receive a 74 percent pay increase, with a smaller raise for more-senior pilots.
Jim Clark, president of Teamsters Local 357, said the union wouldn’t comment on the proposal. Union leaders will evaluate the offer and determine whether to send it to members for a vote early next week, Clark said.
Republic fell 2.2 percent to $3.52 at 1:54 p.m., paring an earlier decline of as much as 10 percent, after the disclosure of the letter.
The airline has been renegotiating flying contracts with the companies for which it operates regional aircraft: American Airlines Group Inc., Delta Air Lines Inc. and United Continental Holdings Inc.
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This article was written by Michael Sasso from Bloomberg and was legally licensed through the NewsCred publisher network.
From Skift: Here’s the Republic letter to its pilots: