MIAMI — Republic Airways Holdings Inc. announced today that it has reached an agreement with American Airlines to amend their Capacity Purchase Agreement (CPA), thus clearing the path to exiting bankruptcy.
The announcement was made last Friday, when the carrier filed a motion for its approval in the United States Bankruptcy Court for the Southern District of New York.
The Amendment provides for a single capacity purchase agreement that prescribes the flying commitments and obligations of Republic and American related to the legacy American and US Airways capacity purchase agreements, and permits the removal of certain aircraft, an extension in duration of Republic’s flying for certain aircraft for American.
Republic will now be able to restructure its aircraft financing obligations while facilitating its transition to a single air carrier operating certificate by configuring 80-seat Embraer E175 aircraft to 76 seats, making them consistent with the rest of its fleet and in compliance with pilot contracts at its larger partners.
“This is a major milestone in our journey towards a successful restructuring. Our amended agreement with American Airlines secures a majority of our flying commitments and importantly secures the size and scope of our ongoing Ejet fleet,” said Bryan Bedford, Chairman, President and CEO of Republic.
“American’s participation in our restructuring program is paramount to our ability to implement our strategy of consolidating our air carrier operating certificates. American is a long-standing strategic partner of Republic and our relationship extends back to our initial capacity purchase agreement for regional jet operations at US Airways. We look forward to continuing to provide high levels of safe and reliable operations to American and its customers,” Bedford added.
The Indianapolis-based carrier has already reached agreements to continue operating flights for Delta Air Lines and United Airlines.