Posted on: 05 September 2016 by Mark Howells
Republic Airways Holdings Inc. has reached an agreement with American Airlines that secures a long-term relationship between the two airlines and has now filed a motion for its approval in the US Bankruptcy Court for the Southern District of New York.
“This is a major milestone in our journey towards a successful restructuring,” commented Bryan Bedford, chairman, president and CEO of Republic. “Our amended agreement with American Airlines secures a majority of our flying commitments and importantly secures the size and scope of our ongoing E-Jet fleet.
“American’s participation in our restructuring programme 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 concluded.
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.
It also permits the removal of certain aircraft and an extension in duration of Republic’s flying for certain aircraft for American, which will facilitate Republic’s ability to favourably restructure the remaining aircraft financing obligations and allow for the potential restoration of service of a certain number of aircraft, subject to Republic’s ability to secure suitable financing of the aircraft.
Furthermore, the agreement facilitates Republic’s transition to a single air carrier operating certificate by reconfiguring 80-seat aircraft to the 76-seat configuration.