Republic Airways, a regional airline that flies for American Airlines, Delta, and United, is planning to notify 40% of their workforce that they may be furloughed October 1.
The carrier, best known as the actual airline David Dao was flying under the United Express banner when he was dragged off an aircraft and bloodied in Chicago three years ago, had the foresight to game the CARES Act and circumvent the intent of Congress by firing employees before taking payroll support money while receiving funds based on its full payroll – and pocketing the difference. (The CARES Act required carriers to keep their employees at full rate of pay through September 30th – once they had accepted the funds.)
Here’s the plan to communicate around WARN Act notices going to 40% of employees:
The potential for shedding staff is equivalent to what United Airlines has shared with its employees, though they’re unlikely to actually furlough that many.
American Airlines EMB-175 Operated by Republic
Republic, which spent parts of 2016 and 2017 in Chapter 11 bankruptcy, used to own Frontier Airlines (which it sold to Indigo Partners) and used to operate the Chautauqua Airlines and Shuttle America brands before consolidating them into the Republic brand. Today they operate Embraer E-170 and E-175 aircraft for partners, generally under capacity purchase agreements – which is why I’m surprised to see October 1 layoffs so severe, I’ll be interested to learn the status of these agreements.