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
Republic Airways Holdings Inc. Annual Stockholders Meeting June 9, 2015
Slide 2: Safe Harbor Disclosure
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 “for
Slide 3: I. 2014 Year in Review
REPUBLIC AIRWAYS l. 2014 YEAR IN REVIEW
Slide 4: 2014 Goals and Accomplishments
2014 Goals and Accomplishments Renew focus on our guiding • Completed extensive employee engagement survey principles and winning • Identified 26 action items to improve culture and employee engagement • Created eight Action Teams with over 300 employees to address items identified employee culture
Slide 5: 2014 Financial Results
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
Slide 6: 2014 Operating Statistics
2014 Operating Statistics (YoY vs 2013) AVAILABLE SEAT MILES (millions) +8.5% Operational Highlights 14,628 13,484 1,607 2,287 • Growing capacity (as measured in available seat miles) by operating 9,602 11,682 larger aircraft: 957 639 1,119 220 − The Company removed 27 lines of ERJ flying and 7 2013
Slide 7: II. 2015 and Beyond
REPUBLIC AIRWAYS ll. 2015 AND BEYOND
Slide 8: 2015 Corporate Objectives
2015 Corporate Objectives • Introduce ASCEND leadership and development program for all managers and above Keep our people our #1 •• Facilitate employee action teams to address issues highlighted in our 2014 employee engagement survey Implement the Base Partners Program to ensure senior management i
Slide 9: Operating Fleet Plan
Operating Fleet Plan (End of Period) 263 247 249 244 242 242 41 41 41 41 41 41 39 30 30 30 30 30 47 47 41 47 47 47 58 58 58 58 58 58 38 38 38 44 53 78 31 23 23 22 20 5 5 5 5 0 0 0 YE 2014 1Q15 2Q15 3Q15 4Q15 YE 2016 DL ERJ (E145) AA Ejet (E175) UA Ejet (E170/175) E190 DL Ejet (E170/175) US Ejet (E17
Slide 10: Forecasted Operating Statistics
Forecasted Operating Statistics AVAILABLE SEAT MILES (millions) +16.3% +2.4% 17,420 14,628 14,975 1,332 1,607 1,219 12,802 15,757 11,682 1,119 220 792 162 331 0 2014 2015 2016 +15.0% BLOCK HOURS -0.1% 876,000 761,991 761,569 117,000 104,735 ERJ 137,621 E-Jet 736,000 E190 540,650 596,388 Q400 74,087
Slide 11: III. Labor Update
REPUBLIC AIRWAYS lll. LABOR UPDATE
Slide 12: What Was Happening in Our Industry?
What Was Happening in Our Industry? 12
Slide 13: Significant Events during Amendable Period
Significant Events during Amendable Period 13
Slide 14: Negotiations Summary
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 negatively
Slide 15: 19 Articles TA'd
19 Articles TA’d 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
Slide 16: Remaining Open Articles
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 6/3/1
Slide 17: Reaching Closure
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 on
Slide 18: Enhanced Language
Enhanced Language 2015 TA and Article 2003 CBA pages Company proposal Difference pages The Company’s proposal 1 Scope 7 7 more than doubles the 0 2 Definitions 5 40 35 3 Compensation 9 13 language of the current 4 4 Expenses 3 9 6 5 Moving 3 5 book. 2 6 Scheduling 20 23 3 7 Vacancies/Reserves 5 8 3
Slide 19: Summary and Next Steps
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 in
Slide 20: Question & Answer Session
REPUBLIC AIRWAYS QUESTION & ANSWER SESSION
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations Year ended December 31, 2013 2014 ($ 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) Adju
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