Republic Airways Holdings Inc. moved closer to a potential bankruptcy filing on Tuesday after the national Teamsters officials backed a decision by local leaders not to send a proposed labor deal out to pilots for a vote. Indianapolis-based Republic, which flies small jets for partners Delta Air Lines Inc. (DAL), United Continental Holdings Inc. (UAL) and American Airlines Group Inc. (AAL), in late August made what it called its ‘last, best and final offer’ to try to resolve a long-running standoff with its pilots. Republic management, in a letter to pilots posted on the Internet, warned that the alternative to accepting the deal would be far worse. ‘The other path is a non-consensual restructuring in which we no longer control our destiny,’ Republic wrote. ‘It is a difficult and unwelcome choice, but it is better than remaining stuck at this frustrating crossroads.’ Local union officials however chose not to send the offer to members, despite its promise of higher wages and contained healthcare costs, in part because of language that would have handcuffed future union communications with its pilots.
Subscribe to TheStreetTV on YouTube:
For more content from TheStreet visit:
Check out all our videos:
Follow TheStreet on Twitter:
Like TheStreet on Facebook:
Follow TheStreet on LinkedIn:
Follow TheStreet on Google+:
source
