Embraer chief executive Frederico Curado says today he does not expect the restructuring of Chautauqua Airlines to cause any more financial impact beyond the impairment charge that the airframer booked in the third quarter.
The Brazilian airframer revealed that Chautauqua's restructuring programme led to a charge worth 3% of operating margin, causing Embraer to miss its profit targets in the quarter.
Republic Airways is restructuring Chautauqua's costs to keep the US regional airline viable as a provider of capacity purchase agreement services to mainline carriers. Republic is seeking to reduce Chautauqua's annual costs by between $40 million and $60 million.
Chautauqua operates a fleet of 15 E140s and 55 E145s.
Embraer chief executive Frederico Curado agrees with Republic's decision that Chautauqua's cost base needs to be restructured.
"We are confident that the worst is behind," he says.