Republic, United Ink Long-Term Deal
The agreement still needs bankruptcy court approval.
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowIndianapolis-based Republic Airways Holdings Inc. has reached a long-term operation agreement with United Airlines. Republic Chief Executive Officer Bryan Bedford says the deal "completes a major milestone" in the airline’s Chapter 11 reorganization efforts.
The agreement calls for Republic to continue to operate 54 E170s and E175s for United, as well as future Ejet flying. The deal still needs court approval.
Bedford says the agreement, once approved, "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." He says it also keeps Republic on schedule to emerge from bankruptcy by the end of the year.
In February, Republic and some of its subsidiaries filed for Chapter 11 reorganization. At the time, the airline said the move was in the best interest of the company and its stakeholders. Earlier this month, a U.S. bankruptcy court approved a settlement between Republic and Delta air Lines Inc. (NYSE: DAL) involving a "consensual wind-down" of a contract involving aircraft flown by Republic for Delta and $75 million in funding to help with the reorganization.