American Airlines Deal Paves Way for Republic to Exit Bankruptcy

By Paul Riegler on 2 September 2016
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American Airlines regional jets at LaGuardia

American Airlines regional jets at LaGuardia

Republic Airways Holdings said it had reached a “major milestone” in its reorganization by reaching an agreement with to continue to offer regional flights for American Airlines, its largest customer.

American Airlines accounts for roughly half of Republic’s revenue, it said in a court filing Friday.

“The comprehensive commercial settlement and claims resolution with American is a major achievement for the debtors that clears the pathway for a successful emergence from Chapter 11,” it said in the filing with the United States Bankruptcy Court for the Southern District of New York.

The deal calls for American to pay for the reconfiguration of some of its 80-seat Embraer E175 regional jets to a 76-seat configuration, which will give its fleet greater consistency and put it into compliance with pilot contracts at its partner airliners. It also includes a single capacity agreement for American based on legacy American and US Airways capacity purchase agreements.

Republic filed for bankruptcy in February after it was unable to meet contractual commitments due to a shortage of pilots. It has already reached agreements with its other major partners, Delta Air Lines and United Airlines.

(Photo: Accura Media Group)

Accura News

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