Republic Airways Holdings Inc. · NASDAQ:RJET
Republic Airways — Shareholder Meeting (June 2015)
21 slides from Republic Airways's shareholder meeting presentation, Jun 9, 2015
Slide 1: Republic Airways Holdings Inc. Annual Stockholders Meeting June 9, 2015
Republic Airways Holdings Inc. Annual Stockholders Meeting June 9, 2015
Slide 2: Safe Harbor Disclosure
2 Safe Harbor Disclosure DISCLAIMER 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 constitute “f
Slide 3: I. 2014 Year in Review
REPUBLIC AIRWAYS I. 2014 YEAR IN REVIEW
Slide 4: 2014 Goals and Accomplishments
4 2014 Goals and Accomplishments •Completed extensive employee engagement survey • Identified 26 action items to improve culture and employee engagement •Created eight Action Teams with over 300 employees to address items identified Renew focus on our guiding principles and winning employee culture
Slide 5: 2014 Financial Results
5 2014 Financial Results Actual Actual ($ in millions, except per share amounts) 2013 2014 '14 vs '13 Total Revenues 1,346.5$ 1,375.4$ 2.1% GAAP Pre-Tax Income 81.3$ 85.2$ 4.8% Adjustments: Impairments and other charges 21.2 53.4 Chautauqua restructuring gain - (18.4) Adjusted Pre-Tax Income 102.5$
Slide 6: 2014 Operating Statistics
6 2014 Operating Statistics (YoY vs 2013) Operational Highlights • Growing capacity (as measured in available seat miles) by operating larger aircraft: − The Company removed 27 lines of ERJ flying and 7 E190 aircraft in the fourth quarter of 2013 and the first half of 2014 − The Company added 24 E-J
Slide 7: II. 2015 and Beyond
REPUBLIC AIRWAYS ll. 2015 AND BEYOND
Slide 8: 2015 Corporate Objectives
8 2015 Corporate Objectives • Introduce ASCEND leadership and development program for all managers and above • Facilitate employee action teams to address issues highlighted in our 2014 employee engagement survey • Implement the Base Partners Program to ensure senior management is meeting regularly
Slide 9: Operating Fleet Plan (End of Period)
9 Operating Fleet Plan (End of Period) 31 23 23 22 38 38 38 44 53 58 58 58 58 58 41 47 47 47 47 30 30 30 30 30 41 41 41 41 41 20 78 58 47 39 41 0 4Q15 249 3Q15 247 5 2Q15 242 5 1Q15 242 5 YE 2014 244 5 YE 2016 263 0 0 UA Ejet (E170/175) DL Ejet (E170/175) DL ERJ (E145) Q400 AA Ejet (E175) US Ejet (E
Slide 10: Forecasted Operating Statistics
10 Forecasted Operating Statistics 540,650 596,388 736,000 137,621 104,735 117,000 23,000 0 2016 876,000 74,087 2015 5,372 761,569 55,074 9,633 2014 761,991 +15.0% -0.1% Q400 ERJ E190 E-Jet 279,337 311,253 380,000 88,498 68,712 71,000 51,601 425,067 5,631 2016 467,000 16,000 0 2015 421,227 37,718 3,
Slide 11: III. Labor Update
REPUBLIC AIRWAYS lil. LABOR UPDATE
Slide 12: What Was Happening in Our Industry?
12 What Was Happening in Our Industry? 2007 2015 2008 2009 2010 2011 2012 2013 2014 2015 May 07 Northwest Airlines exits Ch 11 Jul 08 Oil hits $147/bbl Aug 08 EOS Airlines ceases operations Great Recession Dec 07 Maxjet Airways ceases operations Economic Recovery Economic Expansion Oct 08 Sun Countr
Slide 13: Significant Events during Amendable Period
13 Significant Events during Amendable Period 2007 2015 2008 2009 2010 2011 2012 2013 2014 2015 Apr 07 IBT Local 747 Opens Section 6 negotiations six months ahead of CBA amendable date Oct 07 Jul 08 Oil hits $147/bbl Apr 08 Frontier Files Ch 11 Bankruptcy Rejects RJET fixed-fee cpa covering 17 E170
Slide 14: Negotiations Summary
14 Negotiations Summary • We have reached tentative agreement (TA) on 19 articles which have meaningful improvements over the “status quo” collective bargaining agreement (CBA) and the February 2014 TA which was rejected in April 2014 • The current dispute between the Company and the IBT is negative
Slide 15: Pilot Contract Negotiations Status
15 Pilot Contract Negotiations Status Current as of June 8, 2015 # Title Comments Introduced L357 Pass # RAH Pass # Total Passes 4 Expenses AIP 4/10/15 5 - 4/21/15 5 - 4/21/15 10 5 Moving Expenses TA 11/13/14 4 - 2/26/15 3 - 2/25/15 7 9 Seniority TA 11/11/14 2 - 11/18/14 2 - 11/20/14 4 10 Training T
Slide 16: Remaining Open Articles
16 Remaining Open Articles Pilot Contract Negotiations Status Current as of June 8, 2015 # Title Comments Introduced L357 Pass # RAH Pass # Total Passes 1 Recognition and Scope Awaiting IBT 4/30/15 3 - 5/27/15 3 – 6/3/15 6 2 Definitions Awaiting IBT 6/3/15 1 - 6/3/15 1 3 Compensation Awaiting IBT 6/
Slide 17: Reaching Closure
17 Reaching Closure • Given the fact that there had been limited progress in reaching agreement on the remaining Articles and Article 3 Compensation had not even been presented, in order to create new momentum, the Company delivered a comprehensive close-out proposal to the IBT negotiating committee
Slide 18: Enhanced Language
18 Enhanced Language The Company’s proposal more than doubles the language of the current book. • Improves quality of life (QOL) for our Pilots • Enhances procedures affecting the QOL for our Pilots • Improves transparency for both parties • Eliminates loopholes and grey areas Article 2003 CBA pages
Slide 19: Summary and Next Steps
19 Summary and Next Steps • We remain committed to working constructively with IBT Local 357 to reach an agreement that is in the best interest of our pilots and the other 4,000 associates of our airline. • Our pilots deserve the best contract in the regional airline industry − Our proposal contains
Slide 20: Question & Answer Session
REPUBLIC AIRWAYS QUESTION & ANSWER SESSION
Slide 21: Non-GAAP Reconciliations
21 Non-GAAP Reconciliations ($ in millions, except per share amounts) EPS EPS Pre-tax income (loss) from continuing operations 81.3$ 1.49$ 85.2$ 1.62$ Adjustments: Impairment and other charges 21.2 0.39 53.4 1.02 Chautauqua Restructuring Gain - - (18.4) (0.35) Adjusted pre-tax income from continuing
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