Revised relationship with American secures Republic’s viability and
is a critical step in Republic’s reorganization
INDIANAPOLIS--(BUSINESS WIRE)--Sep. 2, 2016--
Republic Airways Holdings Inc. announced today that it has reached an
agreement with American Airlines that secures a long-term relationship
between the two airlines and today has filed a motion for its approval
in the United States Bankruptcy Court for the Southern District of New
“This is a major milestone in our journey towards a successful
restructuring. Our amended agreement with American Airlines secures a
majority of our flying commitments and importantly secures the size and
scope of our ongoing Ejet fleet,” said Bryan Bedford, Chairman,
President and CEO of Republic. “American’s participation in our
restructuring program is paramount to our ability to implement our
strategy of consolidating our air carrier operating certificates.
American is a long-standing strategic partner of Republic and our
relationship extends back to our initial capacity purchase agreement for
regional jet operations at US Airways. We look forward to continuing to
provide high levels of safe and reliable operations to American and its
customers,” Bedford added.
The amended agreement provides for:
a single capacity purchase agreement that prescribes the flying
commitments and obligations of Republic and American related to the
legacy American and US Airways capacity purchase agreements;
permitting the removal of certain aircraft, an extension in duration
of Republic’s flying for certain aircraft for American, which will
facilitate Republic’s ability to favorably restructure the remaining
aircraft financing obligations, and allowing for the potential
restoration of service of a certain number of aircraft, subject to
Republic’s ability to secure suitable financing of the aircraft;
facilitates Republic’s transition to a single air carrier operating
certificate by reconfiguring 80-seat aircraft to 76-seat configuration.
The parties anticipate that the motion will be heard before the
Honorable Sean H. Lane on September 21, 2016. The new agreement will
become effective in accordance with the terms of the Amendment following
issuance of the approval order by the court.
Zirinsky Law Partners PLLC and Hughes Hubbard & Reed LLP are serving as
Republic’s legal advisors in the restructuring. Seabury Securities LLC
is serving as Republic’s financial advisor. Latham & Watkins LLP and
Haynes and Boone, LLP are serving as American’s legal advisors and
Millstein & Co. is serving as American’s financial advisor.
About Republic Airways
Republic Airways Holdings Inc., based in Indianapolis, is an airline
holding company that owns Republic Airline and Shuttle America
Corporation, collectively called “the airlines.” The airlines offer
approximately 1,000 flights daily to 105 cities in 38 states, Canada,
the Caribbean, the Bahamas, and Mexico through Republic’s fixed-fee
codeshare agreements under our major airline partner brands of American
Eagle, Delta Connection and United Express. The airlines currently
employ about 5,800 aviation professionals. For more about Republic
Airways, please visit our website at www.rjet.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995: Statements in this press release regarding Republic Airways
Holdings' business which are not historical facts are "forward-looking
statements" that involve risks and uncertainties. For a discussion of
such risks and uncertainties, which could cause actual results to differ
from those contained in the forward-looking statements, see the summary
of risk factors contained in our annual report on Form 10-K.
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Source: Republic Airways Holdings Inc.
Republic Airways Holdings