Republic Airways, United Airlines long-term deal approved by court

By Caroline Salls

Pittsburgh, June 17 – Republic Airways Holdings Inc. obtained court approval of an agreement reached with United Airlines that secures the long-term relationship between the two airlines, according to an order filed Thursday with the U.S. Bankruptcy Court for the Southern District of New York.

“The agreement we have reached...will secure United as a long-term strategic partner, provide significant benefits to our airline, and will preserve a reliable and on-time travel experience for United’s customers,” Republic chairman, president and chief executive officer Bryan Bedford said in a June 1 news release announcing the deal.

“The agreement also completes a major milestone in our reorganization effort and keeps us on schedule to achieve our goal of emerging from bankruptcy by the end of the year.”

Republic said the agreement would provide for the uninterrupted flying of all 54 E170s and E175s currently operated by Republic for United and also for future Ejet flying by Republic for United through term extensions to all current E170 aircraft and, subject to specified conditions, expected further deliveries of E175 aircraft under revised new delivery schedules.

Under the agreement, United will have a $191.6 million general unsecured claim against Republic Airways Holdings and a single general unsecured claim in the amount of $191.6 million to be split into two claims and allocated against Republic Airline and Shuttle America Corp.

In settlement of Delta’s rights under a guarantee claim assumption order, Delta’s allowed general unsecured claims against each of Republic Airways Holdings and Shuttle will be increased by $3.5 million to $173.5 million.

Based in Indianapolis, Republic Airways is a passenger and air freight service company. It filed for bankruptcy on Feb. 25 under Chapter 11 case number 16-10429.

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