Frontier drags on Republic as it prepared to reveal restructuring plan for the entire company

Set for its third quarter earnings call next week, Republic Airways Holdings (RJET) will be presenting its strategy not only for its ailing branded subsidiary, Frontier, but for its three capacity purchase agreement (CPA) subsidiaries.

It is following both SkyWest and Pinnacle in restructuring the company as the result of changes in CPA business imposed by mainline partners. It, too, is feeling the strain and, as with SkyWest and Pinnacle, is in talks with partners to increase the remuneration for its 50-seat aircraft in CPA operations. CEO Bryan Bedford echoed SkyWest in citing rising maintenance costs but added lease rates were now more than the aircraft was worth given the market lease rates for the type.