Republic Airways Holdings Inc., parent firm to Republic Airlines (Indianapolis International) and Shuttle America (Fort Wayne International), says its pilot corps union, the International Brotherhood of Teamsters’ (IBT) Local 357, has voted in favour of ratifying a new three year labour agreement. The IBT represents the approximately 2,100 pilots of Republic with 1,360 eligible members voting in favour of the deal.

“Today’s ratification by the IBT represents a significant positive step forward for our pilots and our airline,” said Matt Koscal, Republic vice president of human resources. “The new contract recognizes the importance of our pilots in our future success and it gives us a strong foundation on which to rebuild our operation and to move forward with the restructuring of our airline.”

The new three-year agreement comes into effect on or about November 1 and will see approximately USD50 million being invested - inclusive of a ratification bonus and an anniversary bonus - each year.

Republic says the new agreement includes significant improvements in work rules and pilot quality of life. In addition to industry-competitive pay rates, it also includes a transformational USD40/hr first year new-hire rate, up 74% on the previous contract.

“Today’s ratification by the IBT represents a significant positive step forward for our pilots and our airline,” Matt Koscal, Republic vice president of human resources, said. “The new contract recognizes the importance of our pilots in our future success and it gives us a strong foundation on which to rebuild our operation and to move forward with the restructuring of our airline. We still have many challenges to overcome to achieve a successful consensual restructuring of our business, but today’s positive outcome helps move this process forward in full alignment with our pilots.”

Republic had earlier warned that it risked filing for Chapter 11 bankruptcy protection should it fail to conclude a new Collective Labour Agreement (CLA) with its pilot corps. The two have been at loggerheads since 2007 when a previous CLA fell open to amendment.

The improved payrates are expected to benefit the group's operations given the costly impact of a pilot-shortage that has affected regional airlines across the United States. In Republic's case, however, it has failed to secure operational bonuses from its mainline partners with Delta Air Lines (DL, Atlanta Hartsfield Jackson) even filing a USD1 million lawsuit against it for alleged breach of contract.