Republic Airways Holdings and American Airlines reach a long term agreement, Shuttle America to be phased out

American Eagle Airlines (2nd)-Republic Airlines (2nd) Embraer ERJ 170-200LR (ERJ 175) N137HQ (msn 17000231) CLT (Jay Selman). Image: 402600.

Republic Airways Holdings Inc. has announced it has reached an agreement with American Airlines that secures a long-term relationship between the two airlines and has also filed a motion for its approval in the United States Bankruptcy Court for the Southern District of New York.

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 (Embraer 175s).

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.

Copyright Photo: The Embraer 170s and 175s are gradually being transferred from Shuttle America to sister airline Republic Airlines (2nd). American Eagle Airlines (2nd)-Republic Airlines (2nd) Embraer ERJ 170-200LR (ERJ 175) N137HQ (msn 17000231) CLT (Jay Selman). Image: 402600.

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