Delta to Settle Lawsuit Against Regional Partner Republic
Delta Air Lines agreed to settle its lawsuit against Republic Airways Holdings and the two airlines agreed late Thursday to restructure their existing codeshare agreement.
The motion, which requires court approval, was filed in the U.S. Bankruptcy Court for the Southern District of New York. Republic said the move would improve its profitability and cash flow.
The Indianapolis-based carrier said that Delta will continue to contract with it for regional flights while reducing the number of 50-seat jets it has to operate. Such smaller regional aircraft are uneconomical to operate, the airline said. Delta is also giving Republic a $75 million line of credit.
The suit accused Republic of breaching a contract to operate flights for Delta. Republic had cited a shortage of pilots as one reason for cancelling numerous flights.
A court hearing is set for April 14.
(Photo: Accura Media Group)