The Republic Airways Holdings Bankruptcy Dilemma

In 2017, the Republic Airways Holdings, an airline that blamed its shortcomings on pilot shortage, filed for Chapter 11 protection or in simpler terms, bankruptcy protection. While the airline’s employees, share and stakeholders gathered around in shock as the news for restructuring the Airways began in constraint, it was hard to accept the facts despite possessing core leadership values and performance.

‘Outdated’ Regional Model

The Republic Airways Holdings operated majorly as a regional airline, where it would transport flights outsourced by the Delta, American, and United entities. The airline had been operating under the misnomer regional model for about twenty years, but this was outdated, and hence, their lease-in business of contracting aircraft and crew by other airlines significantly decreased.

Decreased Value

As mentioned above, the outdated business model of leasing-in aircraft, crew, and other inventory from by retail airline systems became impractical. Many refused calling the Republic Airways as an airline while others refrained from admitting to the scope of its regional transportation business.

Nobody knew that the Airways will have to file for bankruptcy protection under Chapter 11 after enjoying two decades in the air. Similarly, if you’re doing business – retail, real estate, or software – in any state of the USA, let’s say, the Knox County of Tennessee, it is wise to glance at your assets and opt for bankruptcy attorneys in Knoxville, TN, before you crash down just like the airline once did.

Reduced Demand

Previously, the Republic Airways was under the American Airlines system as one of its carriers when flying domestic and in-house flights was reasonable and actually within the major airline’s budget and need. However, in 2017, due to the decreased value and demand of the leasing-in market, Republic crashed, as American Airlines upgraded their data management system for high efficiency.