Republic/Chautauqua New Deal With US Airways for E-170 and E-190
Republic Airways Holdings Announces Agreement with US Airways for the Commitment to Affirm Chautauqua Airlines Jet Service Agreement
INDIANAPOLIS--(BUSINESS WIRE)--March 14, 2005-- Deal Includes Potential New Jet Service Agreement for the Operation of Embraer 170 and 190 Aircraft, a Conditional Equity Commitment for $125 Million and up to $110 Million in Asset Related Financing Republic Airways Holdings Inc. (NASDAQ/NM:RJET), announced today that along with its majority shareholder Wexford Capital LLC, it has reached agreement with US Airways Group, Inc. on an omnibus agreement which includes provisions for the affirmation of an amended Chautauqua Airlines Jet Service Agreement (JSA); a potential new jet service agreement with a Republic subsidiary for the operation of Embraer 170 and 190 aircraft; a conditional $125 million dollar equity commitment and up to $110 million in asset related financing. Terms of the agreement are being filed by US Airways Group, Inc. with the U.S. Bankruptcy Court for the Eastern District of Virginia in Alexandria, and US Airways will seek the court's approval at the next monthly omnibus hearing scheduled for its case, which is set for Thursday, March 31 at 9:30 a.m. The omnibus agreement contains several provisions including: -- The amendment of the existing Chautauqua JSA, including: a reduction in compensation of approximately 3% on the existing 35 ERJ-145 fleet effective upon court approval of the agreement; a one-time option for US Airways to remove 5 ERJ-145 aircraft from the existing Chautauqua JSA; under certain specific conditions, a one time right to remove an additional 10 ERJ-145 aircraft from the existing Chautauqua JSA; and a term extension of one year, from March 2012 to March 2013. -- Prior to the effective date of US Airways' plan of reorganization, but no later than December 31, 2005, US Airways may exercise its option to obtain approximately $110 million through the sale and financing of certain assets including ten EMB-170 aircraft currently owned by US Airways and three EMB-170 aircraft currently committed for delivery to US Airways, other EMB-170 related assets and a sale/leaseback financing of 113 commuter slots at Washington Reagan National Airport and 24 commuter slots at New York LaGuardia Airport. In addition US Airways will assign to Republic the leases for an additional 15 EMB-170 aircraft. Republic would also work with US Airways to locate an Embraer heavy maintenance facility at an agreed upon location within the US Airways network. Republic would enter into a regional jet service agreement that would continue the operation of the EMB-170 aircraft as US Airways Express. At any time during the term of the slot sale/leaseback agreement, US Airways will have the right to repurchase the LaGuardia and Washington slots at a predetermined price after US Airways emerges from Chapter 11 bankruptcy protection. -- A conditional commitment from Republic Airways Holdings and/or Wexford Capital LLC to invest $125 million in new equity upon US Airways' emergence from Chapter 11. The proposed $125 million equity investment is subject to a number of conditions, including US Airways securing at least $350 million in new cash investment (including the $125 million from Republic/Wexford and the $125 million previously secured from Eastshore Aviation, LLC) and Republic's right to approve US Airways' business plan. -- After the effective date of US Airways' Chapter 11 plan of reorganization, in the event that US Airways has not exercised the slots sale/leaseback option, Republic will have an option to purchase/assume leases of all 28 EMB-170 aircraft and to fly them as US Airways Express. -- In the event that US Airways draws down the equity commitment, Republic, at the request of US Airways, may purchase, finance and operate as US Airways Express an additional 22 Embraer 170 and 190 aircraft. "Republic and our majority shareholder Wexford Capital are pleased to support US Airways in their restructuring efforts. The affirmation of our amended Chautauqua Airlines jet service agreement along with the potential development of a new jet service agreement to operate Embraer 170 and 190 aircraft under the US Airways Express brand is a very positive development for our employees and shareholders," said Bryan Bedford, chairman president and CEO of Republic Airways Holdings. "We are very pleased to have secured the support of a second, well-regarded investor and airline partner to help us build and finance our plan of reorganization," said Bruce R. Lakefield, US Airways president and chief executive officer. "The Republic management team has a proven track record and we look forward to an expanded relationship." Republic Airways Holdings, based in Indianapolis, Indiana is an airline holding company that operates Chautauqua Airlines, Inc. and Republic Airlines Inc. Its principal operating subsidiary, Chautauqua Airlines offers scheduled passenger service on more than 700 flights daily to 76 cities in 32 states, Canada and the Bahamas through code sharing agreements with four major U.S. airlines. All of its flights are operated under its major airline partner brand, such as AmericanConnection, Delta Connection, United Express and US Airways Express. The airline employs more than 2,600 aviation professionals. |
March 2005? Republic flying EMB190s? That will never happen...
|
Originally Posted by Boomer
(Post 687028)
March 2005? Republic flying EMB190s? That will never happen...
|
Originally Posted by Boomer
(Post 687028)
March 2005? Republic flying EMB190s? That will never happen...
|
What your point with this post? It's from 2005.
|
Why is this thread brought up again? It's 4 years old.
|
LOL yet again my blood pressure goes up for no good reason at all. At least i didn't fall for it and post something stupid. :D
|
Glad you guys checked the date.....I never even caught that.
I too was thinking WTH is this |
Why is it posted, it's from 2005.
|
That was 2005.
Simple business would suggest not giving the competitor any capital to play with. So I would certainly hope that the current U.S. Airways wouldn't give RAH another dime unless it's supporting a pre-existing contract. Then again it is the airlines....bad management is just as normal as "V1 Rotate" |
Originally Posted by flyerfly
(Post 687216)
So I would certainly hope that the current U.S. Airways wouldn't give RAH another dime unless it's supporting a pre-existing contract.
|
Holy Thread resurrection batman! I wasn't trying to figure out what the heck Us Airways isn't in bankruptcy anymore... and they can exercise their option in December 2005? Not to mention Us Airways already flies 190's there's no way they're going to let a regional fly them for feed unless their pilots are smoking CRACK. anyway.. yea.. old thread.. we dodged that bullet
|
Originally Posted by Boomer
(Post 687028)
March 2005? Republic flying EMB190s? That will never happen...
|
Originally Posted by Boomer
(Post 687028)
March 2005? That will never happen...
This cut and paste of a quote is brought to you by the good people at CNN, MSNBC, and most local news. |
Wow! Is RAH that popular now?
|
Dang you Necroposter!:mad::p
|
Originally Posted by Boomer
(Post 687028)
March 2005? Republic flying EMB190s? That will never happen...
|
Originally Posted by LoneStar32
(Post 3345364)
Sick bump bro! This didn't age well.
|
Originally Posted by highfarfast
(Post 3345400)
I'm not interested in reading a 17 year old thread but help me out here... who's bumping sickly? And, is Republic flying E-190s? If so, I missed it. If they're not, I don't understand how the post you quoted aged poorly.
|
Originally Posted by LoneStar32
(Post 3345415)
Then you missed it, bra
|
Originally Posted by MidsizeSUV
(Post 3345436)
Are you really trying to brag about the fact your company paid B scale wages to fly a mainline aircraft?
filler |
All times are GMT -8. The time now is 02:34 PM. |
User Alert System provided by
Advanced User Tagging v3.3.0 (Lite) -
vBulletin Mods & Addons Copyright © 2024 DragonByte Technologies Ltd.
Website Copyright ©2000 - 2017 MH Sub I, LLC dba Internet Brands