Republic Airways Holdings Inc. (OTCMKTS:RJETQ) has filed a form 8-K, regarding a Regulation FD Disclosure and Financial Statements. As per the details of the disclosure, the company has filed a letter to the Office of the United States Trustee, to oppose the creation of a committee of equity security holders. Republic Airways has also reached an agreement with Delta Air Lines, to settle a lawsuit filed against the former.
Although not all the details of the form 8-K filing have been made available as yet, but it has been revealed that the letter contains comments from the management, about their beliefs and assumptions made on the basis of information currently available. RJETQ has stated that it believes that its expectations do carry some weight, but has also clarified that it is not necessary that these expectations would hold true. The statement also contains risks and uncertainties, which might be associated with the action.
As per the settlement, Delta Air Lines would drop the lawsuit and pay $75 million in credit, so as to help Republic rebuild, under its bankruptcy protection. On the other hand, Republic would no longer operate small 50-seat planes for Delta, while continuing to operate larger flights, which are more economical. Delta Connections employs multiple contractors for its business, but Republic is one of the key contractors. The service connects major hub airports and several secondary cities. Delta had initially claimed that the contractor was dealing with a pilot shortage and had as such cancelled several flights scheduled for the company.
As per the new agreement, the CEOs of the two companies, Erik Snell of Delta and Bryan Bedford of Republic, claimed that it would improve the quality and scheduling of the service. Republic also revealed that the new agreement calls for higher reimbursement rates for them, which should improve the company’s revenues and cash flow.
Republic Airways Holdings Inc. (OTCMKTS:RJETQ) finished the April 7 trading session, with a loss of 23.27% to its share value, after having a trade volume of 3.35 million, to close at $0.951.