Category Archives: Shuttle America

Republic to pull ERJ 170s out of Hawaii

Copyright Photo: Sun Valley Aviation. Please click on photo for full view, information and other photos.

Republic Airways Holdings (Indianapolis) has answered our question of what they would do with the three Shuttle America (Indianapolis) Embraer ERJ 170s operating for subsidiary Mokulele Airlines in Hawaii. The holding company yesterday (October 13) announced that it had reached an agreement with Mesa Air Group (Phoenix) to form a joint venture (JV) to combine the jet routes currently flown by both Mesa (go!) and Republic (Mokulele). Under the agreement, Embraer ERJ 170 routes currently operated by Shuttle America (Republic Airways) will be transitioned to jet service provided by go! (Mesa Air Group). The three ERJ 170s will be returned to the mainland by November and will be operated in Republic Airways’ branded network (probably for either Frontier or Midwest).

Under the terms of the JV agreement, Mokulele shareholders will contribute their ownership of Mokulele to the JV and will own 25 percent of the new unnamed venture. Additionally, current Mokulele shareholders will be obligated to fund up to $1.5 million to capitalize the JV. Republic, which is the majority shareholder of Mokulele, will forgive Mokulele’s $3.1 million outstanding debt to Republic, net of surrendered aircraft deposits.

Here is the full press release from Republic Airways Holdings:

finance.yahoo.com/news/Republic-Airways-Forms-Joint-bw-794256419.html?x=0&.v=1

The press release by the Mesa Air Group states both the go! and Mokulele Airlines brands will continue under the JV. Therefore both airlines will continue to operate under their brands although it unclear what aircraft Mokulele Airlines will operate.

finance.yahoo.com/news/Mesa-Announces-Joint-Venture-prnews-1012591534.html?x=0&.v=1

Republic Airways reports a $14.1 m 2Q profit

Republic Airways Holdings (Indianapolis) reported a net profit of $14.1 million in the second quarter, representing a decline of 18.2 percent.

Press release:

finance.yahoo.com/news/Republic-Airways-Holdings-bw-113213641.html?x=0&.v=1

Republic Airways to acquire Frontier Airlines

Please click on photo for full view, information and other Frontier photos.

Republic Airways Holdings (Indianapolis) has agreed to be the equity sponsor of Frontier Airlines’ (2nd) (Denver) plan of reorganization. The plan, which is subject to bankruptcy court approval and various conditions, would allow Republic to purchase 100 percent of the equity in the reorganized company for $108.75 million. If approved and completed, the plan will result in Frontier’s successful exit from Chapter 11, at which point it would become a wholly owned subsidiary of Republic Airways, along with Chautauqua Airlines, Republic Airlines and Shuttle America. The acquisition also includes Frontier’s Lynx Aviation subsidiary.

This announcement raises several possible scenarios if this acquisition is approved by the bankruptcy court.

1. Lynx Aviation is likely to be merged into Colgan Air (2nd).

2. Republic Airlines’ (2nd) Embraer ERJ 170s are likely to return to the Denver hub (and possibly other regional aircraft operated by Chautauqua Airlines).

3. A possible merger between Frontier Airlines and Midwest Airlines (which Republic has an interest).

One thing is guaranteed, there will be changes in Denver.

Shuttle America withdraws its last DL ERJ 170

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Shuttle America (Indianapolis) has now moved out the last Embraer ERJ 170 from the Delta Connection contract. All DL operations are now flown by by larger ERJ 175s.

Please see the Widgetheads link (lower right column) for more details.

Mokulele Airlines to start Honolulu-Hilo May 1

Mokulele Airlines (Kailua-Kona) will add the Honolulu-Hilo route on May 1. The new route will be operated by Shuttle America’s Embraer ERJ 170s.

Republic to become 50% owner of Mokulele

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Republic Airways (Indianapolis) is moving ahead to be a 50 percent shareholder of Mokulele Airlines (Kailua-Kona) through a restructuring of the Hawaiian carrier. New management will also take over at Mokulele. Republic’s Shuttle America operates its ERJ 170s for Mokulele.

Here is the full story via KITV in Honolulu:

http://www.kitv.com/money/18971543/detail.html