Republic to Acquire New Planes

The agreement still needs bankruptcy court approval.

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Indianapolis-based Republic Airways Holdings Inc. has announced plans to acquire a large number of aircraft. The parent of Republic Airlines has signed a Letter of Intent for an order of 100 E175 passenger jets from Brazil-based Embraer S.A., with purchase rights for an additional 100 aircraft. Reuters reports the deal is valued at $9.3 billion. 

As part of the LOI, Republic has the right to convert the the jets to E173-E2 aircraft. Bryan Bedford, chief executive officer of Republic, says the deal is a continuation of a two decade-long partnership with Embraer, during which time the company has acquired more than 350 aircraft.

"Through this partnership we have delivered industry leading safety, service and reliability to our codeshare partners, and this order positions Republic to focus on the next stage of growth in the North American regional market," said Bedford. "The EJet has proven to be a product that allows Republic to provide a reliable and seamless product experience with our mainline partners, and when coupled with our 5,500 dedicated aviation professionals, it delivers on our long-term vision of being the regional airline of choice."

The LOI calls for a definitive purchase agreement to be finalized later this year. Republic says the letter also secures the company’s delivery positions over the next several years.