Log in
Login
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nasdaq  >  American Airlines Group Inc    AAL

Delayed Quote. Delayed  - 05/03 09:59:59 pm
34.58 USD   +0.44%
05/03DJJudge Approves Republic Airways Settlement With Delta
05/02DJBombardier Faces Off With Airbus, Boeing
04/30 POLICE : Student booked exotic trips, fancy cars with stolen miles
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 
The feature you requested does not exist. However, we suggest the following feature:

Judge Approves Republic Airways Settlement With Delta

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/03/2016 | 08:55pm CEST

A bankruptcy judge has approved a settlement between Republic Airways Holdings Inc. and Delta Air Lines Inc. that includes a crucial code-share agreement, according to people with knowledge of the matter.

Judge Sean Lane of the U.S. Bankruptcy Court in New York approved the settlement as well as the $75 million bankruptcy financing provided by Delta, the people told The Wall Street Journal.

Representatives for Delta and Republic didn't respond to requests for comment.

The decision comes less than two weeks after the settlement was put before Judge Lane, who needed additional time to decide on it and the financing, which were met with objections from a group of shareholders.

The code-share deal and financing also received objections from the U.S. attorney and unsecured creditors, but these were resolved before the April 21 hearing.

Still, the shareholders group wouldn't budge in negotiations before the hearing.

At a hearing last month, Republic's lawyer said the code-share deal with Delta was vital to the survival of the carrier and would pave the way for negotiations over similar agreements with American Airlines Group Inc. and United Continental Holdings Inc.

The code-share agreements allow Republic to operate flights for Delta and other large carriers.

The settlement with Delta was tied to the $75 million in financing, and the rejection of one would have doomed the other. Republic's bankruptcy lawyer said last month that the Delta loan had the most favorable terms. The shareholder group opposed the pact with Delta.

The shareholders, who own more than 40% of Republic's equity, had asked the court to deny the financing package and settlement, saying would give Delta enormous power in Republic's bankruptcy proceedings.

Tension between Republic and the shareholders arose shortly after the carrier filed for bankruptcy protection in late February. The airline says shareholders are out of the money and likely won't see any recovery on their claims.

The Indianapolis-based Republic's woes stem from a pilot shortage brought on by relatively low starting salaries and new U.S. regulators' rules requiring aviators to have additional training.

Republic, in particular, suffered because of an outdated pilot contract that made it less attractive than its rivals to prospective hires.

Because of the pilot shortage, Republic was forced to ground some of its planes, leading to a lawsuit from Delta that claimed damages because of the loss of service for some Delta flights that had been operated by Republic.

Republic and Delta reached a settlement in March, which resulted in the code-share agreement and bankruptcy loan.

Write to Lillian Rizzo at Lillian.Rizzo@wsj.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
React to this article
Latest news on AMERICAN AIRLINES GROUP IN
05/03DJJudge Approves Republic Airways Settlement With Delta
05/02 AMERICAN AIRLINES GROUP INC. : Entry into a Material Definitive Agreement, Creat..
05/02DJBombardier Faces Off With Airbus, Boeing
04/30 POLICE : Student booked exotic trips, fancy cars with stolen miles
04/30 AMERICAN AIRLINES : Student accused of flying high on $260,000 worth of stolen m..
04/30 AMERICAN AIRLINES : CEO ends contract, taking 'at will' status
04/30 AMERICAN AIRLINES : Dayton airline growing quickly with new hires
04/30 AMERICAN AIRLINES : flies presidential committee on cultural mission trip to Cub..
04/29 AMERICAN AIRLINES : Violin bumped from flight
04/29 AMERICAN AIRLINES : apologizes to musician for barring violin
Advertisement
News chart
Full-screen chart
Income Statement Evolution
More Financials