Republic Airlines has announced on February 25 that it and certain of its subsidiaries have filed voluntary petitions for relief under Chapter 11 of the US bankruptcy code with the bankruptcy court of New York's Southern District.

Republic Airways Holdings fully owns its two airline subsidiaries Republic Airlines and Shuttle America which operate Bombardier and Embraer regional aircraft on behalf of the three US major carriers AA, DL and UA.

Republic Airways Holdings chairman Bryan Bedford has given obligations on the group's "out-of-favor aircraft", the nationwide pilot shortage and a lack of success renegotiating contracts with its major airline customers as reasons for the decision to file for reorganization in "an orderly, court-supervised" fashion.

Earlier this week, Bedford has told employees in an internal circular that he aims to simplify operations by merging Republic Airlines and Shuttle America and then having a single air operators certificate (AOC). Combined, the two carriers will then be left with a fleet of 73 EMB-170s, 115 EMB-175s and 41 ERJ-145s after the Dash 8-400s operating for United Express will be retired.