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Regional Airline Company Files for Bankruptcy

Regional Airline Company Files for Bankruptcy
Jesse Tabit

Due to alleged pilot shortage, Republic Airways, the Indianapolis-based company that owns Republic Airlines and Shuttle America, filed for bankruptcy Thursday. United Airlines, Delta Air Lines, and American Airlines use Republic as a feeder carrier, completing hundreds of short-haul flights daily. No other passenger carriers have filed for bankruptcy since American Airlines did so in 2011.

Aviation consultant Michael Boyd claims the move will not have an impact on the flying public. “But it does recognize that that sector of the industry… is atrophying,” Boyd said.

For more information on this story, visit Fortune.

To discuss this story, visit this FlyerTalk forum.

[Photo: Bombardier]

View Comments (4)


  1. brocklee9000

    February 26, 2016 at 1:40 pm

    That’s a shame. They came by a few months ago recruiting for pilots, and were bragging about how they had just raised new hire pay to something like $45-40 per hour and other benefits. It’s a shame they are restricted by knee-jerk arbitrary hour requirements, or else I’d be flying for them (or any airline) this very instant.

  2. FlyerTom111

    February 27, 2016 at 9:20 pm

    The FAA needs to readjust the requirements. There was no reason to jack up the hours.

  3. zerolife

    February 29, 2016 at 8:51 am

    Has nothing to do with the stricter FAA regulation. As explained in the linked article
    “When times are tougher for pilots, many of them have no choice but to work for the wages that these airlines offer,” explained Seth Kaplan, of Airline Weekly. “But right now, with many Vietnam-era pilots having recently retired after reaching the mandatory retirement age of 65, and a limited number of new pilots replacing them, many pilots have their pick of good jobs. When the music stops, it’s the small-plane operators who don’t have enough pilots willing to work for what those airlines are willing to offer.”

    Even at the larger airline-level, a lot of the good pilots have left for international airlines due to better pay and shinier planes. Raising pay may incentivize more people to become a pilot, but it’s going to take years for any effect due to the years of training. What the airlines really need to figure out is how to win back those experienced pilots that have left for internationals.

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