There are few mysteries to this idea. RJET was once an entity operating two different businesses, (1) a nascent, branded low-cost airline, and (2) a contract carrier. The branded airline ("Frontier") was bleeding cash, has since healed, and is in any case to be sold in this quarter. The price has more or less been agreed and, after all is said and done, the sale will add ~$75 million in net cash to the parent's balance sheet.
What will remain of RJET - the "Republic" segment - transports passengers on behalf of the legacies under contracts that see it compensated by departure. Fuel is a pass-through cost and Republic gets paid the same irrespective of how empty or full the flight.
The Republic segment's profile looks like this:
There are a couple of uncertainties: the American/USair merger may decrease demand (i.e. departures) slightly as the number of hubs is reduced, and the outcome of the labor agreement negotiations with its pilots may knock two percentage points off current run-rate EBIT.
So, at the low end, one might reasonably expect run-rate EBIT of ~$180 million less interest expense of $110 million for earnings of $70 million on a market cap of $500 million. (There are a billion dollars or so of useable NOLs, so RJET won't be paying taxes for a while).
The company will also have ~$270 million in cash at the end of the year, after the sale of Frontier and, given the strong cash flow generation from the business, it seems to me not unlikely that, say, $50m to $100m of that is paid out in the form of dividends.
Disclosure: I'm long RJET