Republic Airways Holdings Inc. · NASDAQ:RJET
Republic Airways — Bank of America 2012 Global Transportation Conference
16 slides from Republic Airways's conference presentation, May 17, 2012
Slide 1: Bank of America 2012 Global Transportation Conference
Bank of America 2012 Global Transportation Conference May 17, 2012
Slide 2: Disclaimer: Forward Looking Statements
Disclaimer Forward Looking Statements Statements in this presentation, as well as oral statements that may be made by officers or directors of Republic Airways Holdings Inc . , its advisors, affiliates or subsidiaries (collectively or separately the “Company”), that are not historical fact constitut
Slide 3: RJET Highlights
RJET Highlights 3 ▪ Competitive unit costs and stable operating margins on Republic’s fixed - fee business with predictable, long - term income stream on EJet aircraft and lower proportional exposure to 50 - seat aircraft ▪ Chautauqua restructuring program in 2012 targeting reductions in aircraft ow
Slide 4: YOY Q1 Segment Financial Performance
YOY Q1 Segment Financial Performance 4 Both segments reported improved results YOY (Republic up ~$8M, Frontier up ~$18M) Republic results improved mainly due to reduction in pro - rate flying (small jets parked; E170s to Delta) Frontier TRASM outpaced fuel cost/gallon increase for 3 rd straigh
Slide 5: 2011 "New" Segment Information
2011 “New” Segment Information 5 $$ in MM (as reported) Q1 2011 Q2 2011* Q3 2011* Q4 2011* FY 2011* Total operating revenues 287.2$ 333.2$ 371.6$ 338.5$ 1,330.5$ TRASM (cents) 10.61 11.25 11.70 11.54 11.30 Fuel expense 105.2$ 138.4$ 146.7$ 127.4$ 517.7$ Depreciation & amortization 7.1$ 7.0$ 6.9$ 6.9
Slide 6: Republic Business Overview
6 YE 2011 Republic Customer Mix (% of Aircraft) 2011 Revenue Distribution (% of Revenue) ▪ Comfortable, reliable and cost efficient E - jet product offers our major airline partners a superior quality product at an affordable price ▪ Firm, long - term contracts covering 126 EJets with Delta, United
Slide 7: Republic's Attractive Fleet Profile
Republic’s Attractive Fleet Profile 7 Average Seats per Plane Fleet Profile versus Competitors (as of 12/31/2011) Average Age of Fleet (years) ▪ Regional fleet profile with very attractive attributes compared to our regional competitors ▪ Average age of ~6.5 years and 66 seats per plane as of year -
Slide 8: Regional Airline Pressures
Regional Airline Pressures 8 ▪ Fixed - Fee agreement profitability has come under pressure in recent years due to increases in labor, healthcare and maintenance costs coupled with benign CPI - related rate adjustments ▪ Republic’s profitability has been consistently among the best in the regional ai
Slide 9: Mitigation of Under-Utilized Assets
Mitigation of Under - Utilized Assets 9 ▪ During April we closed on subleases for 3 E170s to Aerolitoral » Represents the final 3 unassigned E170 aircraft removed from Frontier service » 2 Aircraft will be delivered in June and the 3rd in September ▪ Four Q400 Aircraft at Republic scheduled to be pl
Slide 10: Chautauqua Restructuring Effort
Chautauqua Restructuring Effort 10 ▪ As part of the Frontier restructuring, several 50 - seat aircraft were removed from service ▪ The ERJ aircraft are no longer producing positive cash flow; we took an impairment charge of $191 million in the 4th quarter of 2011 mainly to write - down the values on
Slide 11: UA Q400 Term Sheet
UA Q400 Term Sheet ▪ The Company has executed a term sheet with United to operate 32 Q400 aircraft (including 4 aircraft currently owned by Republic flying in pro - rate service with Frontier) over an average eight year period beginning in August 2012 » Capacity Purchase (“Fixed - Fee”) Agreement wi
Slide 12: Frontier Business Overview
12 Q3 2010 and 2012E Frontier Branded Capacity by Hub Q3 2010 and 2012E Aircraft (Aircraft Type) ▪ Significant n etwork and fleet transformation completed over last two years ▪ Removing unprofitable capacity and aircraft ▪ Improving financial results, despite fuel headwinds ▪ Transforming Frontier i
Slide 13: Frontier Fleet Rationalization
Frontier Fleet Rationalization 13 ▪ Focused on A320 high density aircraft configuration to accommodate record load factors ▪ Average fleet age of approximately six years ▪ Better and different customer experience ▪ Passionate and service - oriented employees ▪ Meaningful fleet simplification, averag
Slide 14: Frontier Separation Process
Frontier Separation Process 14 ▪ The Company has selected Barclays Capital as its advisor ▪ New executive management team in place, headed by former US Airways CEO, David Siegel ▪ The Company has made no determination as to the type of transaction (sale, partial sale, spin, etc…) ▪ The Company expec
Slide 15: Frontier Fleet News and Updates
Frontier Fleet News and Updates 15 ▪ Attractive fleet additions for future of Frontier » Well priced » First mover advantage » Limited financing risk » Low PDP requirements in the near term » Efficient engine maintenance secured ▪ Frontier A320 fleet to undergo seat modifications to add six seats to
Slide 16: RJET Highlights
RJET Highlights 16 ▪ Competitive unit costs and stable operating margins on Republic’s fixed - fee business with predictable, long - term income stream on EJet aircraft and lower proportional exposure to 50 - seat aircraft ▪ Chautauqua restructuring program in 2012 targeting reductions in aircraft o
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