CORRECTED-UPDATE 2-Republic Air files for bankruptcy protection, blames pilot shortage

(Corrects to show Republic Air is not the most recent U.S.
airline bankruptcy since American Airlines in paragraph six)
By Tracy Rucinski
CHICAGO, Feb 25 (Reuters) - Regional carrier Republic
Airways Holdings Inc RJET.O filed for Chapter 11 bankruptcy
protection on Thursday, blaming several quarters of falling
revenue after having to ground aircraft amid a pilot shortage.
The Indianapolis-based short-haul carrier, which feeds
flights to American Airlines Group Inc AAL.O , Delta Air Lines (N:DAL)
Inc DAL.N and United Continental Holdings Inc UAL.N brands,
listed assets of $3.6 billion and $3.0 billion of liabilities,
court documents showed.
Republic said the bankruptcy process would allow it to
continue normal business while restructuring its finances and
contracts.
"We worked hard to avoid this step," Republic Chairman Bryan
Bedford said in a statement but added that the restructuring
would "restore our airline and take it to new heights."
Republic offers approximately 1,000 daily flights to more
than 100 cities in the United States, Canada, the Caribbean, and
the Bahamas.
It is among of handful of regional airlines that have filed
for bankruptcy since American Airlines filed in 2011.
United said in a statement on Thursday that it does not
expect to change its flight schedules because of the bankruptcy.
American said it is too early to assess an impact on scheduling,
and Delta did not immediately return a request for comment.
"It's not going to affect the flying public at all,"
aviation consultant Michael Boyd said. "But it does recognize
that that sector of the industry... is atrophying."
"We maintain that within three years, most 50-seat jets will
be parked," he said of the small jets flown by regional
airlines.
United has said it aims to cut the number of 50-seat planes
flown under its United Express brand in half by 2019, reducing
its reliance on contractors, improving its fuel-burn per
passenger and giving it space for multiple cabin classes and the
chance to up-sell customers.
Republic said it has sufficient assets and liquidity to meet
its working capital and operating expenses during the
restructuring process and will continue to deliver safe services
and pay its employees, providers and vendors.
The carrier, with a staff of about 6,000, will also continue
to honor its collective bargaining agreements with its unions,
it said.
The company's major investors include Solus Alternative
Asset Management, BlackRock Inc (N:BLK), Man Group Plc, Dimensional Fund
Advisors, Axar Capital Management and Manning & Napier Advisors,
according to court documents.
The case is In re Republic Airways Holdings Inc., 16-10429,
U.S. Bankruptcy Court, Southern District of New York.