Republic Airways Files for Bankruptcy After Pilot Shortage
- Filing comes as airlines enjoy two years of record profits
- Short-haul air carrier had been trying to simplify fleet
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Short-haul carrier Republic Airways Holdings Inc. filed for bankruptcy Thursday, blaming a lack of pilots for its failure to succeed when major airlines are enjoying record profits.
Indianapolis-based Republic operates a fleet of smaller planes that provide flights for larger airlines including American Airlines Group Inc., Delta Air Lines Inc. and United Continental Holdings Inc. Although it landed a three-year union contract with its pilots last year, the company still had to ground aircraft just as it was trying to renegotiate agreements with the larger carriers and to rework terms of aircraft leases.