Revised relationship with United moves Republic closer toward
achieving a successful reorganization
INDIANAPOLIS--(BUSINESS WIRE)--May 27, 2016--
Republic Airways Holdings Inc. (OTC:RJETQ) announced today that it has
reached an agreement with United Airlines that secures the long-term
relationship between the two airlines. The motion filed today in the
United States Bankruptcy Court for the Southern District of New York
keeps Republic on a path towards achieving the goals established at the
outset of this case.
“Today’s announcement further strengthens an important relationship for
Republic. The agreement we have reached today once approved will secure
United as a long-term strategic partner, provide significant benefits to
our airline, and will preserve a reliable and on-time travel experience
for United’s customers,” said Bryan Bedford, Chairman, President and CEO
of Republic. “The agreement also completes a major milestone in our
reorganization effort and keeps us on schedule to achieve our goal of
emerging from bankruptcy by the end of the year,” Bedford added.
The parties anticipate that the motion will be heard before the
Honorable Sean H. Lane on June 15, 2016. The amended agreement would
provide for the uninterrupted flying of all fifty-four (54) E170s and
E175s currently operated by Republic for United and also for future Ejet
flying by Republic for United through term extensions to all current
E170 aircraft and, subject to certain conditions, expected further
deliveries of E175 aircraft under revised new delivery schedules. The
new agreement will become effective upon 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. Sidley Austin LLP is serving
as United’s legal 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 and the Bahamas 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 earnings release.
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Source: Republic Airways Holdings Inc.
Republic Airways Holdings