Republic Airways Holdings Inc., struggling with a pilot shortage as it works to reach a new contract, said the company may have to seek bankruptcy protection if its latest labor proposal fails, Bloomberg News reported on Friday. While the regional airline wants to secure an agreement, the alternative is court-supervised restructuring, said Matt Koscal, vice president of human resources. Chapter 11, which protects a company from creditors while it reorganizes, is one possible type of restructuring, Koscal said on Friday. “That’s not what we’re focused on right now, but we feel it’s fair for us to explain to all our employee groups where we stand as an organization,” Koscal said. “The status quo is no longer an option.” Koscal’s comments amplified an online letter to pilots in which eight Republic executives said a contract rejection would force it to consider “non-consensual restructuring.” The language was the strongest yet from Indianapolis-based Republic in urging approval of a deal after talks dating to 2007.
