Items from the Republic 2009Q4 Conference Call
I know at least one or two things were posted from the conference call in various threads (although I can't seem to find any of them) but here is a bigger list, primarily about the branded operation side of things.
Cost per available seat mile (CASM) without fuel for the branded operation was 7.3 cents. However the "branded operation" totals include Midwest's ER3 and ERJs. The non-fuel CASM for the A319 and E-Jet fleet was in the low 6-cent range, which they described as right in line with their main competitors.
Loss on branded operations for the quarter was $18.5m, however that number has a lot of "noise" in it. When things like accounting rule adjustments and restructuring charges are removed...which totalled about $16m...the loss for the 4th quarter was right about $2.5m, described as in line with expectations.
Revenue per seat mile continues to be lower year-over-year, primariliy due to capacity increase and competitivbe pressures, although that is slowing.
Loads are stronger year-over-year for the branded operations as a whole, with January and February loads up 3 points and 2.6 points (to date), and March is so far running about 10 points above last year. Spcifically in Milwaukee, the Q1 load factor is running about 10 percentage points ahead of last year, though there is some yield errosion. Because of signficantly lower costs in Milwaukee, they are "very comfortable" in the current pricing environment. Cost savings are outpacing revenue weakness and they are "very pleased" with how Milwaukee is developing.
Replacing 717's with E-jets was described as saving $3-4m per year per aircraft. Replacing Skywest with Chautauqua was described as saving about $1m per year per aircraft.
The code share between Midwest and Frontier has boosted traffic at both carriers, with about 5% of each carrier's traffic coming from people flying on the partner's code. On their own, each carrier typcially served opposite-coast markets with just 1 or 2 flights per day, but now Midwest customers have more options via Denver to the west, and Frontier customers have more optinons via Milwaukee to the east.
The Q400's in Denver were described as "great aircraft" but were seeing increased negative customer reaction. Much of the negative revenue performance markets in DEN were the Q400 markets. 6 of 11 will be gone by mid April.
By mid April, all idle E-jets will be in service.
Stretch premium seating will be installed on the E170's by fall, and at that point only the ERJ/ER4 aircraft will not have Stretch.
Milwaukee was still described as in a "rebuilding" phase, and they pointed out that 2010 capacity is still well under 2008.
They expect to have more information on the "unified brand" later in Spring. Going to a unified brand is different than picking one name and dropping the other. Looking to use both brands in a way which retains as much of the brand strength of each...the "best of both what is Midwest and Frontier".
By fall they expect the branded operation to be on a single Sabre platform, a single internet booking engine, one set of product attributes, one set of policies, etc. They specifically stated being very "deliberate and cautious" in how they will consolidate.
I think a few of these things were posted by others, but hoepfully this gives a little larger snapshot.