Big airlines say contractor bankruptcy won't disrupt flights
DALLAS (AP) — If you fly on American Eagle, Delta Connection or United Express, there is a good chance you have been on a plane operated by Republic Airways, which just filed for bankruptcy protection.
The three leading U.S. airlines say, however, that the bankruptcy of a key supplier will not disrupt service for passengers.
Republic Airways Holdings Inc., whose airline subsidiaries operate more than 1,000 flights a day, filed for Chapter 11 protection from creditors on Thursday. But it said it would continue flying as usual.
Shares of Republic tumbled $2.50, or 73 percent, to 94 cents in afternoon trading today.
Republic is one of several carriers that have contracts with American, Delta and United to operate regional flights using smaller planes. Passengers buy tickets from the big airlines, who pay regional carriers to operate flights with smaller planes – typically 50 to 100 seats.
In the last dozen years, airline passengers have grown accustomed to flying on carriers that are operating under bankruptcy protection. American, Delta and United all went through bankruptcy.
American Airlines spokesman Casey Norton said Friday that his airline did not expect Republic's bankruptcy to affect American Eagle operations. He said American "will work with them as things develop to make sure we take care of our customers."