Republic Airways management have taken a great step forward in their efforts to turn the airline around and secure its future under Chapter 11 protection following an agreement reached with United Airlines that secures the uninterrupted flying of all 54 E170s and E175s currently in operation with Republic for United Airlines. The agreement also covers term extensions to all current E170 aircraft and, subject to certain conditions, expected further deliveries of E175 aircraft under revised new delivery schedules. The motion was filed in the United States Bankruptcy Court for the Southern District of New York on May 27 with a hearing date expected on June 15, 2016.
“[This] announcement further strengthens an important relationship for Republic. 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,” said Bryan Bedford, Chairman, President and CEO of Republic. “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.”
Zirinsky Law Partners and Hughes Hubbard & Reed are serving as Republic´s legal advisors in the restructuring. Seabury Securities is serving as Republic´s financial advisor. Sidley Austin is serving as United´s legal advisor.