Republic Airways Holdings Inc (OTCMKTS:RJETQ) Close To Emerging From Bankruptcy

Republic Airways Holdings Inc. (OTCMKTS:RJETQ), based in Indianapolis, is an airline holding company that owns Republic Airline and Shuttle America Corporation. The Company offers scheduled passenger service on approximately 1,094 flights daily to approximately 118 cities in the United States, Canada, and Caribbean. It provides fixed-fee regional airline services under United Express, Delta Connection, or American Eagle. As of February 25, 2016, Republic Airways Holdings Inc. filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York.The airline reminds me of the movie Wall Street when Bud Fox (Charlie Sheen) blurted out to Gordon Gekko (Michael Douglas), “Bluestar Airlines."Gekko responds, “...don't like airlines, lousy unions…”Bud responds, “A comer. 80 medium-body jets. 300 pilots, flies northeast, Canada, some Florida and Caribbean routes... great slots in major cities…There was a crash last year. They just got a favorable ruling on a lawsuit. Even the plaintiffs don't know.”Gekko looks up, remotely interested and says, “How do you know?”Bud (hesitates and concerned) says, “I just know...the decision will clear the way for new planes and route contracts. There's only a small float out there, so you should grab it. Good for a five-point pop.”That’s essentially similar news that Republic Airways just received. The Company just announced Friday, September 2, 2016 that it has reached an agreement with American Airlines that secures a long-term relationship between the two airlines and filed a motion for its approval in the United States Bankruptcy Court for the Southern District of New York. Bryan Bedford, Chairman, President and CEO of Republic said:

“This is a major milestone in our journey towards a successful restructuring. Our amended agreement with American Airlines secures a majority of our flying commitments and importantly secures the size and scope of our ongoing Ejet fleet. American’s participation in our restructuring program is paramount to our ability to implement our strategy of consolidating our air carrier operating certificates. American is a long-standing strategic partner of Republic and our relationship extends back to our initial capacity purchase agreement for regional jet operations at US Airways. We look forward to continuing to provide high levels of safe and reliable operations to American and its customers."

The amended agreement provides for:

• a single capacity purchase agreement that prescribes the flying commitments and obligations of Republic and American related to the legacy American and US Airways capacity purchase agreements;

• permitting the removal of certain aircraft, an extension in duration of Republic’s flying for certain aircraft for American, which will facilitate Republic’s ability to favorably restructure the remaining aircraft financing obligations, and allowing for the potential restoration of service of a certain number of aircraft, subject to Republic’s ability to secure suitable financing of the aircraft;

• facilitates Republic’s transition to a single air carrier operating certificate by reconfiguring 80-seat aircraft to 76-seat configuration.

Currently trading with a market cap of $53 million, RJETQ is one step closer to taking off in our opinion. The airline is likely to a re-emerge from bankruptcy in a much superior financial condition that the Company ever had before. Just like in Wall Street, hopefully, this is good for, maybe not a five point, but a significant pop. We will be updating our subscribers as soon as we know more. For the latest updates on RJETQ and other OTC stocks in bankruptcy, sign up below!Disclosure: We have NO position in RJETQ and have NOT been compensated for this article.