Republic Airways Holdings Inc. (NASDAQ: RJET)
Republic Airways Holdings Inc. (RJET), an airlines company announced on Monday a tentative agreement on a new three year contract with 2,100 pilots represented by the Teamsters union.
Republic Airways Holdings Inc. VP of Human Resources
“This is a positive outcome,” said Matt Koscal, Republic vice president of human resources. “This consensual agreement respects the role our pilots play in our airline’s success and it puts them at the forefront of our industry. We are pleased that we could reach a consensual agreement with the leadership of Local 357 that allows us to make a significant investment in our Pilots and our future.” Business Wire
Comments from Teamsters Local 357 President :
“This milestone is long overdue,” said Captain Jim Clark, Teamsters Local 357 president. “Our members are extraordinary aviators and safety professionals who come to work every day ready to do the job asked of them. They deserve pay, job security, benefits and work rules that match their leadership position in our industry. The Executive Board of Local 357 recommends this tentative agreement to our members for ratification. We were able to reach this positive outcome because of the support of our members who stayed united even in the face of constant challenges.” Business Wire
RJET Technical Analysis
RJET gapped up in price yesterday to $5.92, up from the prior day’s close of $5.29 which is a 12% increase in price based on favorable news. Taking a look at the daily chart, we can see the last time the stock traded above this price level was back on June 24th when the stock closed at $8.50. On that occasion, the stock tanked all the way to lows of $3.05 during the next day of trading, equivalent to a 64% drop in price. The drop can be attributed to the news of flight disruptions due to pilot shortage and a labor standoff. The stock has already put in a big move as it was up over 90% two days ago jumping from $2.79 to $5.29. I believe the stock sets up as a nice continuation play as there is still room for it to move up as the June gap down price is at $8.50. The stock did reach pre market high of $6.11, meaning that it gave back $0.19 at the open equivalent to only 3%. For trading purposes, my my entry point would have been $6.00 with a possible add on at pre market highs of $6.11. My stop loss would have been $5.85 fearing anything below that and the stock would start to fill in the gap up.
Company Profile
Republic Airways Holdings Inc., incorporated on March 20, 1996, is a holding company. The Company offers scheduled passenger services through its wholly owned operating air carrier subsidiaries: Chautauqua Airlines, Inc. (Chautauqua), Shuttle America Corporation (Shuttle) and Republic Airline Inc. (Republic Airline). As of December 31, 2014, the Company’s subsidiaries offered scheduled passenger service on 1,229 flights daily to 101 cities in 38 states and Canada under scheduled passenger service through its fixed-fee code-share agreements with United Continental Holdings, Inc. (United), Delta Air Lines, Inc. (Delta), and US Airways/American Airlines Group, Inc. (American).”
“As of December 31, 2014, the Company’s operational fleet was 244. As of December 31, 2014, it operated 41 E145 aircraft, 14 E170 aircraft, and 16 E175 aircraft for Delta under fixed-fee code-share agreements. As of December 31, 2014, it provided 367 flights per day as Delta Connection. Under Its fixed-fee Jet Services Agreements with US Airways, it operated, as of December 31, 2014, 20 E170 aircraft and 38 E175 aircraft. As of December 31, 2014, it provided 355 flights per day as US Airways Express. As of December 31, 2014, it operated 41 E175 aircraft for American under a fixed-fee code-share agreement and provided 224 flights per day as American Eagle. As of December 31, 2014, it operated 38 E170 aircraft and 28 Q400 aircraft for United under fixed-fee code-share agreements. As of December 31, 2014, it provided 353 flights per day as United Express. Reuters
