Republic Airways and Mesa Air announce merger plan
Two of the largest regional airlines in the U.S. have decided to combine their businesses. Republic Airways and Mesa Air have reached a merger agreement that will create a group with 310 aircraft.
Keeping the name Republic Airways Holding Inc., the new company will be publicly traded and will operate an exclusive fleet of Embraer E-Jets.
In the agreed split, Republic shareholders will have 88% of the control while Mesa will have between 6% and 12%, depending on an undisclosed arrangement.
The merger agreement is expected to close between the third and fourth quarters of the year.
“Today’s announcement is an exciting next step in Mesa’s more than 40-year history, one that represents the best outcome for our shareholders, employees, and all of our stakeholders,” said Jonathan Ornstein, Mesa’s Chairman and Chief Executive Officer.
“We’re thrilled to combine the Republic and Mesa teams to create one of the world’s leading Embraer jet operators,” said Bryan Bedford, Republic’s President and Chief Executive Officer.
Company to serve American, Delta and United
The new regional airline resulting from the combination will be one of the largest in the United States and will feed the networks of the country’s three main carriers, American Airlines, Delta Airlines and United Airlines.
Republic currently flies a fleet of 209 E-Jets, including 31 E170s and 178 E175s. Mesa has four CRJ-900s, but is expected to remain with only 60 E175s.
The group also has pending deliveries with Embraer, including 15 new E175s to be received in 2025.
Republic has a long-term contract with the three major U.S. carriers and flies to the Northeast and Mid-Atlantic regions.
Mesa, in turn, will sign a new capacity purchase agreement with United for existing capacity as a result of the Republic transaction.
The airline was in debt to its partner and recently sold its CRJ-900 fleet to it.
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