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Republic to buy $3B in jets; quarterly profit rises

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Republic Airways Holdings Inc. earned $20.1 million in the fourth quarter, partly due to its acquisition of Frontier Airlines Holdings, the Indianapolis-based regional carrier reported late Wednesday.

In addition, the company announced it has agreed to buy 40 Bombardier Inc. CS300 regional jets valued at $3.06 billion, the largest order for the aircraft since its introduction in 2008.

Its profit translated to 55 cents per share in the quarter ended Dec. 31, compared to $19 million for the same period in 2008, or 56 cents per share.

Republic, the operator of six regional carriers, reported fourth quarter revenue of $637.3 million, an 88-percent increase from the same time in 2008.

The results included $109.2 million of impairment charges and a $203.7 million gain on a “bargain purchase” related to the acquisition of Frontier. Republic bought Denver-based Frontier for $108.8 million on Oct. 1.

The two non-recurring items increased the local carrier’s quarterly profit by $17.1 million. In addition, the company reported a year-end tax adjustment, which increased profit by $2.1 million.

Earnings excluding one-time items were $900,000, or 3 cents per share, falling short of analysts’ estimates of 6 cents per share.
 
For the entire year, Republic’s profit fell 53.1 percent, to $39.7 million. That translated to $1.13 per share, compared to $2.42 in 2009.

Revenue in 2009 climbed 11 percent, to $1.6 billion.

Company shares closed Wednesday at $5.12, down from a 52-week high of $10.64 reached in September.

Republic is the first North American customer for the Bombardier CS300. It holds options to purchase as many as 40 more jets, bringing the total potential value to $6.34 billion, Montreal-based Bombardier said. Carriers that order multiple aircraft typically get discounts.

The operator of regional carriers, including Republic Airlines, Frontier Airlines and Chautauqua Airlines, said the jets would be more fuel-efficient and provide customers with wider aisles and more storage space than its current fleet.

“This aircraft will bring next-generation advantages to all phases of its mission,” Bryan Bedford, Republic CEO, said.

The aircraft will carry 138 passengers in a two-by-three seat configuration. Deliveries begin in the second quarter of 2015.

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  1. The east side does have potential...and I have always thought Washington Scare should become an outlet mall. Anyone remember how popular Eastgate was? Well, Indy has no outlet malls, we have to go to Edinburgh for the deep discounts and I don't understand why. Jim is right. We need a few good eastsiders interested in actually making some noise and trying to change the commerce, culture and stereotypes of the East side. Irvington is very progressive and making great strides, why can't the far east side ride on their coat tails to make some changes?

  2. Boston.com has an article from 2010 where they talk about how Interactions moved to Massachusetts in the year prior. http://www.boston.com/business/technology/innoeco/2010/07/interactions_banks_63_million.html The article includes a link back to that Inside Indiana Business press release I linked to earlier, snarkily noting, "Guess this 2006 plan to create 200-plus new jobs in Indiana didn't exactly work out."

  3. I live on the east side and I have read all your comments. a local paper just did an article on Washington square mall with just as many comments and concerns. I am not sure if they are still around, but there was an east side coalition with good intentions to do good things on the east side. And there is a facebook post that called my eastside indy with many old members of the eastside who voice concerns about the east side of the city. We need to come together and not just complain and moan, but come up with actual concrete solutions, because what Dal said is very very true- the eastside could be a goldmine in the right hands. But if anyone is going damn, and change things, it is us eastside residents

  4. Please go back re-read your economics text book and the fine print on the February 2014 CBO report. A minimum wage increase has never resulted in a net job loss...

  5. The GOP at the Statehouse is more interested in PR to keep their majority, than using it to get anything good actually done. The State continues its downward spiral.

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