Republic Airlines is in discussions with several potential buyers for 12 Embraer ERJ-145 aircraft, says chief executive Bryan Bedford.
Possible buyers include charter outfits and offshore parties that are interested in two to four aircraft each, he says during an earnings call today. Pricing of the aircraft is “fair”, he adds.
Indianapolis-based Republic is bullish that it can sell the aircraft by the end of 2014, says Bedford.
“We’re moving them hot, so call quick,” he says jokingly.
Republic decided to remove the aircraft, as well as 15 Embraer ERJ-140s, from service due to a lack of qualified pilots earlier in 2014. It operates the ERJ-140s for American Airlines and the ERJ-145s for United Airlines.
All 12 of the United aircraft were removed on 1 April and six of the American aircraft were removed in March and April, with the rest scheduled to be parked by the end of the third quarter.
Republic does not anticipate selling the ERJ-140s, which only carrier 44 passengers compared to 50 on the ERJ-145s, says Bedford.
The regional carrier recorded an impairment charge of $19.9 million from parking the ERJ-140s in the first quarter, says Bedford. However, it was able to classify the charge under expenses related to the restructuring of its Chautauqua Airlines subsidiary that resulted in the charge being cash neutral.
Source: Cirium Dashboard
