Republic Airways files plan of reorganisation, intends to emerge from chapter 11 in 1Q2017

Republic Airways Holdings filed (16-Nov-2016) its plan of reorganisation and a related disclosure statement with the US Bankruptcy Court for the Southern District of New York on 16-Nov-2016, setting a course to emerge from chapter 11 during 1Q2017. The carrier will operate a fleet of Embraer 170/175 aircraft as a single air carrier under the Republic Airline name. Republic achieved "significant operational and economic benefits" in chapter 11, including:

• Renegotiation and extension of its capacity purchase agreements with American, Delta, and United;
• Favourable amendments to all core supplier and services agreements;
• Accelerated removal of out-of-favour aircraft;
• Restructuring of the debt on over 80 EJET aircraft.

The carrier said the "accomplishments achieved in chapter 11" will significantly streamline its operations, enhance its competitiveness, allow for new E175 deliveries for United beginning in Apr-2017, and ensure access to adequate liquidity to support its long range business plan. [more - original PR]