Republic Airways Files For Bankruptcy Protection

(RTTNews) - Republic Airways Holdings Inc. (RJET) filed for bankruptcy Thursday, because of "nationwide pilot shortage" continues to hurt its business.

"We worked hard to avoid this step," said Bryan Bedford, Republic's chairman, president and chief executive officer. "Over the last several months, we've attempted to restructure the obligations on our out-of-favor aircraft - made so by a nationwide pilot shortage - and to increase our revenues."

"It's become clear that this process has reached an impasse and that any further delay would unnecessarily waste valuable resources of the enterprise," said Bedford.

Indianapolis-based Republic Airways provides flights on behalf of the large airlines including American Airlines Group Inc. and Delta Air Lines Inc., using its fleet of small planes.

Republic Airways has been struggling to find pilots due to lower compensation the company offers as well as due to the new rules by FAA that requires new pilots should get additional training.